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Archive for the 'early termination fees' Tag

Verizon FiOS Internet upload speed hits 35 Mbps!

January 18th, 2010, 4:39 pm by

Verizon's FiOS TVVerizon just announced today faster Internet speeds for FiOS customers of up to 35 megabits per second upload. That’s faster than any Orange County Internet provider’s download speed.

Faster upload speeds means spending less time uploading photos to Facebook, sending giant spreadsheets and other files to coworkers online or regularly backing up computer files to the great big cloud. According to Verizon, the faster 35 mbps speed means uploading a 20-minute HD video in three to five minutes instead of the half hour it takes with a cable Internet connection.

In Orange County, cable companies upload speeds are a measly 1 to 2 mbps.

But most of Orange County can’t order FiOS. The fiber-optic service is a huge investment for Verizon, which needs city permission to lay cables in the neighborhood. The service has only reached residents in parts of Brea, Cypress, Fountain Valley, Garden Grove, Huntington Beach, La Habra, La Palma, Los Alamitos, Seal Beach Stanton, Westminster and certain unincorporated areas.

Those of us who can’t order Verizon FiOS can, at least, take heart that we won’t be subject to the service’s new early termination fees.

Separately, Verizon confirmed that customers who drop out before their two-year contract ends could be forced to cough up an extra $360. Previously, the fee was $179.  The higher early-termination fee does drop by $15 every month the customer keeps the service, which means by month 23, exiting customers will be charged $15.

The new Internet upload speeds of 25 Mbps up and down, and 35 mbps up and down, upgrade existing plans. Here’s the low down of FiOS TV/Internet bundles:

FiOS plans Price
Ultimate: TV service with 90+ HD channels, Internet speed of 35 mbps up/down, phone $139.99
Extreme: TV service with 65 HD channels, Internet speeds of 25 mbps up/down, phone $124.99
Prime: TV service with 40 HD channels, Internet speed of 15 mbps down, 5 up, phone $109.99

More details on the new bundles HERE at Verizon’s site.

Notable special: Verizon is offering a major FiOS discount to new customers — $20 discount each month for first 12 months for Prime plan, $10 discount for either the Extreme or Ultimate plan.

More on Verizon FiOS:

Posted in: Internet • Video & TV • • • • • • • • • • • | 20 Comments »

FCC calls Verizon’s doubling of early termination fees ‘troubling’

December 23rd, 2009, 5:17 pm by

Verizon WirelessNoted: Verizon Wireless got reamed by consumers and geek sites last month when it decided to double some early termination fees to $350. Today, the U.S. Federal Communications Commission, which regulates the wireless communications industry, called Verizon’s rational for raising the fees  ”unsatisfying and, in some cases, troubling.”

Verizon had responded last week to FCC queries, explaining in a 77-page letter that such early-termination contracts help promote consumer choice and the use of mobile broadband.

FCC commissioner Mignon Clyburn wasn’t amused. She calls out Verizon for changing the rational of early termination fees — from being tied to the cost of the phone to pay for other company expenses. In a statement, Clyburn says this: Read the rest of this entry »

Posted in: Cell phones • • • • | 10 Comments »

The facts about Verizon doubling early termination fees

November 6th, 2009, 1:04 pm by

Verizon WirelessAfter being the first in the industry to pro-rate 2-year mobile phone contracts, Verizon Wireless now plans to double that fee — BUT only in some cases.

Beginning Nov. 15, Verizon’s early-termination fees jump to $350 for higher-end devices like smartphones, netbooks and other advanced devices. The current rate is half that, at $175. The higher rate kicks in only on customers who sign a new contract.

Verizon still will prorate the contract, subtracting $10 a month (all other phones are prorated $5/month). So, by the end of 23 months, affected users will still need to cough up $120. But by then, you might as well wait a month to leave without paying a penny.

Why is Verizon changing its early termination fee? To make subsidizing these expensive devices worth it to the company.

Interestingly, the new Motorola Droid is $199.99 with a 2-year contract. But without a contract, it sells for $559.99. That means you could save $10 by buying the phone, and then canceling the 2-year contract ($200 + $350 = $550). And since the new fee doesn’t kick in until Nov. 15, that means people who buy a Droid before that date and then cancel service will get it for $375 without a contract! No wonder Verizon upped the fee.

As I’ve mentioned before, anyone can test a Verizon phone for 30 days and then cancel without having to pay any early termination fee. Read my earlier story covering testing policies, I mean, return policies by the major mobile providers: “How any consumer can ‘test’ a cell phone.”

Verizon also adds that if you bring a compatible phone to its network and sign up for service, you don’t have to commit to any long-term contract.

Earlier on cell phone policies:

Posted in: Cell phones • • • • • • | 14 Comments »

T-Mobile changes contract terms giving customers a way out

September 1st, 2009, 2:57 pm by

Noted: The Consumerist reports that T-Mobile’s new $0.45/minute overage fees went into effect today, giving customers grounds for cancelling their contract before the two years is up. Expect to argue with customer service. Just come prepared with the contract changes, as noted HERE and on the Boy Genius Report.

Posted in: Cell phones • • • • • • | 3 Comments »

How any consumer can ‘test’ a cell phone

November 6th, 2008, 2:00 pm by

Did you know that you, too, can test a cell phone before committing to a two-year service plan?

Well, actually, you’ve got to commit to a plan and plunk down some money, but all the mobile phone companies also let you cancel after a few weeks if you’re “not completely satisified.”  That means you can play with a phone for a few weeks and then return it, cancel your service contract, and pay relatively nothing. Here’s the rundown on return policies:

Sprint
Test period: 30 days     
Return policy: Full refund of the phone (if returned in good condition with packaging), activation fees. User just pays for any calls, charges based on usage.
Caveat: Existing customers who upgrade a device or service have 30 days to cancel and be restored to their previous contract. Once back to the old contract, the early termination fee could apply if you try to cancel service altogether. Another caveat: If your old contract was part of a limited-time deal, it may not exist anymore.
More:  Sprint’s return policy
Verizon Wireless
Test period: 30 days
Return policy: ”You may terminate service for any reason within 30 days of activation.” 
Caveat: Lots of little things on this one.                 Read the rest of this entry »

Posted in: Cell phones • • • • • • • • • | 2 Comments »

Sprint eases early termination fees; gets sued

November 4th, 2008, 2:49 pm by

Sprint is the last of the big four mobile phone companies to eliminate the sock-it-to-the-consumer fee for ending a wireless contract early. But such fees may be ending anyway if a class-action lawsuit suceeds.

The company is the target of a new lawsuit filed by attorney Scott Bursor, the same lawyer who convinced a judge in July that Sprint’s early termination fees are illegal in California. That case is still pending. A decision is expected in 90 days.

Bursor took the case national, accusing Sprint of wrongly charging subscribers $1.2 billion in early termination fees, according to a story today by Dow Jones news services.  

According to spokeswoman Kathleen Dunleavy, Sprint’s official response to the latest lawsuit is this: 

The important thing to keep in mind is that the ruling on which the Plaintiffs attorney bases his latest lawsuit is a preliminary ruling only. We view this latest lawsuit as cynical and opportunistic, particularly since it is based on a premise that is opposite of the conclusion reached by the jury in the earlier California suit.

Getting back to Sprint’s ETF change of heart, its new early termination policy starts six months into a contract. At 6 months, the company will start deducting $10/month from the $200 fee.  The $10 deduction continues until the fee reaches $50, at month 19. After that, there will be a $50 fee to end a contract early.

This new pro-rated service began Nov. 2, 2008, so if you bought a phone from the company on Nov. 1, looks like you’re stuck with a non-prorated 2-year contract.

Other mobile phone companies have been doing this for nearly two years. Verizon started in November 2006, while AT&T followed a year later. T-Mobile began prorating its contracts in June.

By comparison, Verizon and AT&T take $5 off per month on its $175 fee. T-Mobile’s $200 fee drops to $100 when there is 3 to 6 months left in the contract and then falls to $50 in the remaining 3 months.

Related stories on the mobile phone industry:

Posted in: Cell phones • • • • • • • • • | 2 Comments »

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