Verizon Wireless reduces ETFs for some devices

Verizon Wireless has reduced the number of smartphones and devices that are subject to $350 in early termination fees (ETFs).

Eight devices have been dropped from the list, including five LG devices, the Motorola Krave and the Samsung Rogue. These devices are now classified as "3G Multimedia" phones rather than "Advanced Devices," which are tied to the $350 ETF. The only devices now subject to the $350 ETF are smartphones and netbooks.

The move coincides with new pricing plans Verizon introduced last week (see related story) that in part require customers who purchase 3G Multimedia phones to buy a minimum $10 per month data plan.

Verizon introduced the higher ETF in November and was quickly questioned by the FCC as to why that fee jumped. Verizon explained the difference between the amount it pays handset OEMs for devices and the subsidized price of the device is more than twice as large for Advanced Devices as it is for basic devices. Additionally, Verizon said it incurs additional costs to sign up customers, such as advertising costs, commissions for sales personnel and store costs.

FCC Chairman Julius Genachowski said at the Consumer Electronics Show earlier this month that Verizon's response "raised more questions than it answered."

For more:
- see this FierceWireless article

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