It’s a terrible time for Verizon Wireless or any cell phone company to be raising the early termination fees.   In today’s economy and with the job losses we are experiencing people have to cut back on their expenses somewhere and sometimes a cell phone is  just a luxury people cannot afford.  I would think it would create a lot of goodwill for Verizon to be a bit more understanding instead of trying to stick it to people.

The Federal Communications Commission sent a letter to Verizon Wireless Friday morning asking the company to explain why it has more than doubled its penalties for customers switching carriers.

The inquiry follows pressure by lawmakers, including Sen. Amy Klobuchar (D-Minn.) who introduced a bill Thursday to curb the penalties known as early termination fees (ETFs).

Last month, Verizon Wireless, the nation’s largest cellphone service provider, increased its ETFs for smart phone customers to $350 from $150. The company said smart phones had become more expensive to subsidize, making it more costly when customers with discounted phones left long-term contracts early. No other wireless companies have introduced higher ETFs.

In its lengthy letter to Verizon Wireless vice president of legal and regulatory affairs, Steven Zipperstein, the FCC asked him to explain “the rationale” behind the higher fees. The agency asked for details on the economics behind the ETF scheme and how the costs of subsidizing phones specifically correlate to the ETF.

And it asked whether the company is providing clear guidance to its customers about the higher fees. The agency also asked whether Verizon is clear about the prorating formula for its new ETFs.

Answers to these and other questions are due to the FCC by Dec. 17.

Verizon Wireless has said that it continues to prorate the fee to lessen the ETF in a way that helps those who stay in contracts longer.

REST OF ARTICLE