Andre Yoskowitz
8 Nov 2009 3:29
Verizon Wireless has announced plans to double the early termination fee for users of smartphones, from $175 to $350 USD for those that cancel their contracts early.
Verizon spokesman Jim Gerace says the move should begin on November 15th and will be eligible for anyone using BlackBerrys, the DROID, and other smartphones.
Gerace also adds that the termination fee will decline by $10 for every month the user stays with the contract.
“The cost of smart phones is considerably higher than feature phones for which the early termination fees were created years ago at $175,” Gerace notes.
Analysts believe the move will help protect Verizon's bottom line, which takes a hit everytime a user cancels their service and pockets the difference that Verizon subsidized in the first place to sell the contract.