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Verizon says charging more helps the poor

Discussion in 'Android Lounge' started by Robfactory, Dec 21, 2009.

  1. Robfactory

    Robfactory Well-Known Member
    Thread Starter

    When Verizon decided to charge more for early termination the FCC started asking questions.

    One of those questions was why?
    And it seems Verizon's answer was as sane eradicating babies to cure overpopulation.

    According to a report by Wired, Verizon told the FCC "the high fees help the poor by making it more affordable for them to access the mobile internet."

    Verizon reps went on to say that by raising the termination price to $350 it would help lower the costs of subsidizing phones.

    In a statement Verizon VP, Kathleen Grillo, stated this price hike would enable those who use lower priced plans to enjoy a wider and better experience. Grillo wen t on to state, “The company’s pricing structure therefore promotes the national goal of fostering the greater adoption and use of mobile broadband services.”

    Verizon's new scheme credits the user $10 each month the service contract smartphone line is fulfilled.

    The bad side is if the user cancels on the last day of his contract he or she will have to pay Verizon $120 for early termination.

    Verizon, which made over $4 billion in profits last year, states that even when customers pay the $240 ETF they are still losing money because of "marketing."

    This comment is particularly odd because the customer has to buy a branded phone from Verizon. If anything the customer is walking propaganda for the company for as long as he is using that phone.

    Shouldn't then Verizon be paying the customer for walking around with their logo?

    "Verizon Wireless estimates that, at the twelve month point in the contract term, its typical loss from the early termination is more than double the applicable remaining ETF amount for an Advanced Device ($230). Were Verizon Wireless to prorate the ETF in a manner that would reduce its amount to zero in the last month of the contract, the net losses to the company would be even greater."

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  2. craigrn16

    craigrn16 Android Enthusiast

    Is verizon serious?!?
  3. Robfactory

    Robfactory Well-Known Member
    Thread Starter

    yep...at least if you read the links and wired's interview yes they are being serious
  4. ari-free

    ari-free Android Expert

    well, if there was no ETF then there would be no subsidized phones. It doesn't mean that you are paying for free phones for malnourished children in Africa.
  5. craigrn16

    craigrn16 Android Enthusiast

    Verizon is already the most expensive carrier out there. This just adds insult to injury.
  6. Howie

    Howie Android Expert

    I'm of the mind frame that carriers shouldn't be the ones selling the phones anyway. I don't buy my TV from Time Warner. I also think this would lower the price of phones then. The retail price is crazy high because they want it to not be attractive, so you then go with a contract. If they didn't subsidize and the price was $500 the manufacturers would have to lower the price to draw customers. It doesn't really cost RIM that much to make a BlackBerry (look at the iPhone cost vs retail sale price)
  7. ari-free

    ari-free Android Expert

    only google can change this since they aren't a hardware company. They want everyone on Android so they only benefit from a really low price.
  8. I'm not sure, but that may be the most ridiculous thing I have ever heard. This just gives me another reason to not like Verizon.
  9. IOWA

    IOWA Mr. Logic Pants

    I have to agree, I dont think carriers should sell the phones themselves....

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