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

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.

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1. Posted by nashtari

Mon Nov 16, 2009 6:59 pm

that has got to be the most ridiculous thing YET that Verizon has done. with their constant random charges that everyone already knows that they do and their horrible customer service, i would think they would want to please customers more not piss them off. they are already desperate to offer free service every time someone tries to terminate their plan. my whole family of five all terminated their blackberry plans with Verizon because we had dead zones that we dont have with att and sprint and every month our bill was up and down. they offered us each 3months of free service to keep us, but i'm glad we terminated before it was too late.

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