[Infowarrior] - Verizon to double its cancellation fees

[Richard Forno]

Verizon to double its cancellation fees

With a whole new line of smart phones coming onto the market, Verizon  
Wireless said that starting November 15 it is doubling to $350 the  
penalty fees for subscribers who leave their contracts early.

James Gerace, a spokesman for Verizon Wireless, the nation's largest  
cell phone service, said the fees are for subscribers in one- and two- 
year contracts on an "advanced device" and that those fees will be pro- 
rated $10 a month. That means, if you've made it halfway through your  
two-year contract, the $350 penalty will be reduced $120 to $230.

Gerace said the company decided to raise fees because its highest-end  
phones and small wireless laptops are getting more expensive. The firm  
subsidizes the cost of its most tricked-out phones to make their  
prices more appealing to consumers. Verizon is set to release the  
Droid this Friday for $199 with a two-year contract. The phone is  
meant to take on Apple's iPhone, which runs exclusively on AT&T.

The move could revive debates about early termination fees, the  
penalties wireless service providers charge users for leaving  
contracts early. Consumer groups have pushed for legislation to end  
such fees or at least set rules for the practice. The issue died down  
as major wireless providers decided to pro-rate fees based on length  
of contract.



http://www.washingtonpost.com/wp-dyn/content/article/2009/11/04/AR2009110404720.html?hpid=sec-tech