Verizon to Double Early Termination Fee

By Allen Tsai | Thu Nov 05, 2009 3:18 am

Verizon Wireless said it plans to double its early termination fee for "advanced phones" -- from $175 to $350 -- starting November 15.

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The Basking Ridge, N.J.-based carrier said the penalty applies to customers in one- and two-year contracts with high-end devices such as smartphones.

The company added that the fee will be reduced by $10 for each month of service completed -- meaning the penalty for a customer with five months of service would be reduced $50 to $300.

Carriers have long subsidized devices to keep retail costs low, earning profits on the wireless service -- but Verizon said its highest-end smartphones -- like its new Motorola Droid -- are getting more expensive.

"This has to do with the cost we pay for the device," said Jim Gerace, a Verizon spokesman. He added that fees on Verizon's standard handsets will stay at $175 -- and decrease by $5 a month for each month completed.

Posted In: Verizon (567)

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