Folks looking to sign up with Verizon won’t like this one: they have made a pretty big change to how their ETF policy works. As it stood just yesterday, the company would hit you with a $350 early termination fee for breaking out of a smartphone contract within its first month, though they’d shave off $10 every month until it expired.
That is no longer the case. A recent change to the policy now keeps the fee firmly at $350 throughout the first 7 months of a contract. It isn’t until the 8th month that you’ll begin to see the fee deteriorate, and it’s broken down like so:
- $10 reduction each month between the 8th and 18th month
- $20 reduction each month between the 19th and 23rd month
- $60 reduction on the final month.
Comes out to be about the same by the end of it all, but it certainly doesn’t look as appealing to break out within the first year and a half of the contract’s life. This is no doubt a move to counter T-Mobile’s promise to pay folks’ early termination fees for leaving their current carriers. Make it much more expensive for T-Mobile and it just might pressure the carrier to back out of that promise.
Of course, such a move could also note that the tactic is working beyond their wildest imagination. T-Mobile has added more and more customers each quarter, after all, and they’ve stolen the title of fastest growing carrier thanks to their new unCarrier strategy.
We’ve always gushed over the potential T-Mobile’s bold moves would have on the competitive state of the industry, though we’d rather see competing carriers look to add more value to their offerings instead of using sly tactics like this to try and stiff the competition.
A business has got to do what it’s got to do, though, and you can’t really tell Verizon much about how to run theirs — they still command the largest user base and the best network despite being known to have some of the priciest service, after all. The change goes into effect starting today for new contracts, though any contracts signed prior to the change are still subject to the old $10 deduction each month. You can read the full text of the change straight ahead.
WHAT HAPPENS IF MY POSTPAY SERVICE IS CANCELED BEFORE THE END OF MY CONTRACT TERM?
If you’re signing up for Postpay Service, you’re agreeing to subscribe to a line of Service either on a month–to–month basis or for a minimum contract term, as shown on your receipt or order confirmation. (If your Service is suspended without billing, that time doesn’t count toward completing your contract term.) Once you’ve completed your contract term, you’ll automatically become a customer on a month–to–month basis for that line of Service. If you cancel a line of Service, or if we cancel it for good cause, during its contract term, you’ll have to pay an early termination fee. If your contract term results from your purchase of an advanced device on or after November 14, 2014, your early termination fee will be $350, which will decline by: $10 per month in months 8–18, $20 per month in months 19–23, and $60 in the final month of your contract term. For other contract terms entered into on or after November 14, 2014, your early termination fee will be $175, which will decline by: $5 per month in months 8–18, $10 per month in months 19–23, and $30 in the final month of your contract term. If your contract results from your purchase of an advanced device prior to November 14, 2014, your early termination fee will be $350 minus $10 for each full month of your contract term that you complete. For other contract terms entered into prior to November 14, 2014, your early termination fee will be $175 minus $5 for each full month of your contract term that you complete. Cancellations will become effective on the last day of that month’s billing cycle, and you are responsible for all charges incurred until then. Also, if you bought your wireless device from an authorized agent or third–party vendor, you should check whether they charge a separate termination fee.