FCC Questions Verizon’s Early Termination Fees

By Dena Cassella December 4, 2009

The Federal Communications Commission on Friday asked Verizon Wireless why it recently doubled the fees it charges customers when they break their contracts on “smart” phones.

In November, the carrier hiked the maximum early contract termination fee for smartphones to $350 from $175. Like other carriers, Verizon subsidizes the cost of the devices for contract-signing customers, then expects to make that money back in service fees over the term of the contract.

“Smartphones quickly became a major part of our business and cost us a whole lot more,” Verizon spokesman Jeffrey Nelson said.

The FCC’s letter to Verizon asks how consumers will know whether the increased fee applies to their phone, and whether it’s spelled out anywhere except in the formal customer agreement.

The FCC is also asking the carrier about $1.99 data access fees that have appeared on the bills of customers who don’t have data plans but accidentally initiate data access by hitting a button on their phones. Verizon says that as of a few months ago, it doesn’t charge when a customer starts a data service then quickly turns it off.

The Plain Dealer in Cleveland tapped into a vein of frustration among Verizon customers in columns on the issue in August.

Editors' Recommendations

Topics

Former Digital Trends Contributor

Haole built. O'ahu grown

Mobile

T-Mobile is leaving AT&T and Verizon in the 5G dust

Ookla has just published its latest market report revealing where U.S. mobile carriers and smartphone manufacturers stand in terms of providing the best 5G and 4G/LTE services.

Not surprisingly, T-Mobile remained in the top spot during the fourth quarter of 2022, eclipsing its rivals when it comes to median download speeds. What may be more surprising is that T-Mobile has increased its lead, clocking in at 151.37Mbps overall and 216.56Mbps for 5G, breaking the 200Mbps barrier for median 5G speeds across all bands for the first time.

Mobile

Hurry and sign up to this Verizon Wireless plan before it’s too late

This content was produced in partnership with Verizon.
Prices are climbing steadily, and while we can cite many reasons why, the most important thing to note is that, for at least the next couple of years -- and maybe even longer -- we'll be looking at elevated prices for a lot of goods and services. That means that if you have a chance to lock in reasonable prices, particularly for something you pay for regularly, you'll want to take advantage. And that's precisely what Verizon Wireless is offering via its Welcome Unlimited Plan. Not only can you join America's most reliable 5G nationwide network -- according to Rootmetrics -- but also you can lock in that price for three years. For families with four or more lines, the savings stack up. With four lines, you could be paying just $25 per line per month for the next three years. To take advantage of these low prices, you'll need to bring your phone with you, and that's true for both new and existing customers looking to snag a Verizon Wireless plan. You'll have to hurry though, the offer is only available for a limited time.

Here's how it works: You must switch to Verizon, bring your own phone -- and your phone number too -- and activate at least one new line on the Welcome Unlimited plan. If you are an existing customer already on the same plan, you can take advantage of this offer when you add a new line and bring your phone. You'll get the Welcome Unlimited plan, which offers Unlimited 5G nationwide talk, text, and data access for all new lines. The offer price includes an additional $10 per line discount when you sign up for paper-free billing and auto pay, but it's a bit more expensive if you want to get your bills in the mail or disable autopay. Either way, that's an excellent price, and the three-year price guarantee means that cost won't increase on you for quite a while, which is a huge game-changer in this day and age.

Deals

Best Verizon Fios new customer deals for January 2023

Fios TV Package

Fiber-optic technology is sure to play a huge role in the future of the internet, although it may be some time still before it's available across the majority of the U.S. Verizon has been at the forefront of this ongoing rollout, and as one of the "big three" cellular network carriers in the country, it's always offering exclusive deals and discounts to draw in new customers. If Verizon Fios is available in your area
and you're looking to upgrade your internet (and possibly save by bundling a TV streaming plan and/or landline phone with it), there's never been a better time to make the switch. These are all the best Verizon Fios new customer deals and sign-up offers available right now so you can build your perfect internet, TV, and phone package and start saving right away.

Verizon Fios covers your home landline phone service, but if you're specifically after a new mobile plan, then check out these cell phone plan deals once you're finished here.
Best Verizon Fios deals
Gigabit Verizon Fios connection -- $90 per month
When you buy Verizon's 1GB connection, which has speeds up to 940Mbps, you're not just getting the fastest internet Verizon Fios currently offers. Verizon will throw in some awesome free benefits with it. You get 2TB of Verizon Cloud Storage for free, a service that would normally cost $15 per month. You also get a $300 voucher for a Samsung soundbar, something to rival some of the best soundbar deals out there. You also get your choice of either a free year of the Disney Bundle, which includes Disney+, ESPN+ and Hulu, or a free PS5 controller and headset. That's a ton of perks on top of incredibly fast internet.