Want a Droid on Verizon? There’s an ETF Hike For That
In (presumably) an effort to discourage potential Droid-flippers from just purchasing the phone on contract only to cancel that contract and sell the phone online, Verizon has been planning to double the cancellation fee on “advanced devices”.
That’s right — for advanced phones such as the Droid and similar smartphones, the Early Termination Fee will begin at $350 and decrease by $10 per month per line, starting November 15.
We can’t help but assume that the only reason this ETF is warranted is to prevent anyone from flipping their fancy new Droids on eBay for profit, but it still seems the penalty is a bit harsh.
Just when we thought contracts were becoming more fair by way of prorated ETFs, this comes out of nowhere and blindsides everyone. Thus there is a legitimate fear in other carriers following suit. After all, the iPhone is being subsidized by $400, so it wouldn’t be too ridiculous to imagine AT&T copycatting Verizon on this one.
Here’s a solution, Verizon: if you’re so worried about losing money and customers but yet want to be fair about the ETF, demand a $350 ETF for only the first 4-6 months to ward off the potential flippers, and then drop the ETF down to the same cost as every other device.