Verizon Wireless Prorates Fairness In Prorated ETFs

from the gee-thanks dept

Verizon Wireless got a bit of praise a few months back when it announced it would start prorating the early-termination fees it charges customers who break their contracts before they expire. Operators use ETFs to ensure they recoup the subsidies they pay to make handsets cheap for users to buy, but the ETF doesn't drop as subscribers get closer to the end of the contract, which seems a bit unfair. Now, Eric writes in to point out that Verizon's finally released the details of the ETF changes, and as you might expect, they're not quite as fantastic as people would have hoped. The changes came into force Nov. 16 -- and will only apply to contracts signed on or after that date. Furthermore, the ETF only drops by $5 per month rather than proportionally to the length of the contract. While it's a step in the right direction, it seems a lot less benevolent than originally thought, and keeps the deck stacked strongly in the operators' favor. Perhaps a better solution would be to charge an ETF in line with the subsidy on each handset, then prorate that proportionally over the life of the contract.
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  1. identicon
    Anonymous Coward, 18 Nov 2006 @ 1:35pm

    Re: Re: ironic

    Just because you're in a contact doesn't mean it's not unjust. A HUGE number of contracts I've read from companies have illegal clauses in them - that's why there's an enforcement clause at the end of most which says that if any clause is deemed illegal the rest of the contract stays enforcible.
    Which is why you should ever sign any agreement without having a competent attorney go over for you first. So the next time someone wants to sell you something with a contract, don't forget to figure in the cost of an attorney.

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