I read a story the other day, that I bookmarked to blog about in the future, which outlined how Verizon Wireless in the United States was lowering its' ETF or Early Termination Fee, based on how much time is left in your contract.
Speculation in the article on Engadget was that pressure from the FCC was what brought about this change of heart, however today I am wondering if it also might have to do something with trying to increase market share, or at least hold on to existing custmers.
Basically on Verizon, as well as my carrier in Canada, Rogers Wireless, because the phone you purchase is subsidized, they charge you an Early Termination Fee if you cancel your contract early under the guise that because the phones are very expensive, unless you keep your contract and your phone for the full term, the carrier is losing money. I agree with that to some extent. However what I have never agreed with is that on the last month of your contract, your Early Termination Fee is the same as in the first month. Verizon has changed their contracts now, for new signups, to prorate this amount, based on the length of time you have had the contract in force. This in my opinion is how it should work, and how I remember it working at Rogers in the past, when I first became a customer of theirs.
