Verizon rumored to be raising ETF to combat scammers
Verizon rumored to be raising ETF to combat scammers Boy Genius Report
Are you thinking about jumping on the new Storm2 BOGO deal, selling one on eBay and canceling a line? Well, we already made it pretty clear that doing so really (see math below), but just in case you were thinking of pulling something similar to this in the future, we’re hearing Verizon is stepping it up in the ETF department. The rumor is, that starting November 15, Verizon is going to raise its ETF for high-end phones, such as the Storm2 and Droid, to $350. The ETF would then decrease by $5/mo. We haven’t confirmed it yet, but it certainly makes sense because of how easy it is to rip a carrier off by purchasing a new smartphone on contract, canceling the line, paying the termination fee and selling the phone for twice or three times what you paid. If it pans out, we really can’t blame Verizon for trying to recover the subsidies they’d lose on early contract terminations. Scammers beware!
Last edited by jnepsa; 11-03-2009 at 08:51 AM.
Reason: Removed link and showed math here
i can see their point but you could still keep the line open for two years for 240 bucks. i can't imagine why verizon would charge more for ETF than they would charge for keeping the line open.
Well if that's tru then all the people that though about selling one on ebay is going to b in line this week...lol. I can't say VZW is wrong for doing this, but it sucks for those that actually cancel for a purpose.
They wont do that.. I am pretty sure the ETF has to be some kind of calculation and no more than the price of keeping an active line on a plan for the term of the contract... I.E.- 240 for vzw would be the most that can be charged. I am almost sure of it with the laws of keeping ETF's reasonable... dont quote me but I am like 98% on this.
Well, I can see it happening, and soon after with all the new releases of the high-end phones all the other carriers jumping on it too.
I just called VZW to cancell my USB modem that my fiance had for her laptop, it was either $110.00 to cancel or $120.00 to keep the line open for the next year. That's all that you can do is they'll downgrade it and you just pay $10.00 a month plus all the taxes & fees but you'll still have the account with them. So paying about $15.00 a month for 2 years just doesn't seem worth it to me unless you end up getting like $500+ for the phone off of eBay. Other than that, it seems a little ridiculous to pay the money to keep the line open just to make a small profit of like $100-$200 for it.
Just my 2cents though.
buy now if they change their terms of service which changing a etf would be cant you get out of contract in most states if you dont agree to the new terms? i think thats how it works in my state if i remember right idk, i have never done so but im just thinking out loud
Here is a better math break down( i am going to round any .99 up to 1.00)
BOGO S2- 180.00(for both) + 175.00(ETF)=355.00
now with that 355.00 add on the first months bill for that phone.. even if you take it off right away you are looking at 35.00 activation, and at least 15.00 access charges. plus you will have at least a 3.00 charge from the data(even if for only a day) so add that up 35+15+3=53+355.00= 408.00
So keep in mind the retail is only 539.99. And to unlock the phone it has to be on a line that has been active at least 6 months so even unlocked you will be lucky to get 450.00.
keep in mind that if vzw is selling full price for 539.99 they are probably paying in the neighborhood of 350-400 for the phones. so you figure they get 408.00 out of you.. they at least break even.
Now if you have 100NE2 credit when doing this and it drops the 180 down to 80.. then you have a chance... and now just to do the other side of the math...
So BOGO the S2 180
take the extra S2 off the line but keep it active for the 2years=(roughly 11.14 with tax) you are talking about 268
So BOGO 180+ 2 years 268=484... plus that 53.00 for the first months bill 537!!!
Trust me when I say with the ETF and the price of one storm vzw gets theirs... even if every customer did this vzw would be making money. The fact is I would bet vzw pays no more than 350 per s2 and mark up between 1.5 and 1.6... the math works out in their favor..
They wont change the ETF because I am almost positive there is a law in place that regulates them.
Yes, they can only change the TOS for new signups and renewals, otherwise it voids the original contract and you are free and clear from that contract without penalty.
Originally Posted by newberry
Michigan had legislation a while back to lower and cap wireless ETF's. No surprise that it stalled.
This is TRUE!! Starting Nov. 15 this will go into effect. The ETF for Advance devices will be $350 and will be pro-rated $10 for every month completed. The ETF will stay stay at $175 for basic phones such as a Razr.
Originally Posted by je2345
Whats your source??? This could also be just a bunch of BS viral marketing Verizon has started rumors about so people rush out to do the BOGO scam deal before the 15th and boost their sales of the Storm 2....
Sadly, this is true.
yes they can
Originally Posted by jnepsa
Just read on yahoo and Google,and i have a close friend that works at big red and he told me that its true. 350 per line that's total bs but what can we do but live with it.:no:
Originally Posted by Brett Wyman
I could have swore there was a law.. damn.. If there isnt one there will be after this move lol
Originally Posted by mrmojr1
So if you get a contract before Nov. 15th ...then they change the ETF fee from 175 to 350 doesn't that give you a legal loophole out of your contract anyway?
They wont change existing contracts only new...vzw way to smart for that well kinda
Originally Posted by BBphreak
I hate the ETF whether it is $175 or $350. I can live with $175 because of the discounted phone price, but $350 is ridiculous. So the freedom to leave the carrier is just not practical.
Originally Posted by jnepsa
So only new contracts after Nov. 15th then?
If this happens then yes.. existing contracts will keep the ETF and new will get the 350
Originally Posted by BBphreak
From front page
Well as you can see from the above leaked document it looks as if the rumors are true, and Verizon Wireless will be raising their ETF (early termination fee), from $175.00 to $350.00 on November 15th. This is to go into affect on all new contracts started after the 15th, on all smartphone and what the memo calls "advanced devices". According to a leaked document the higher ETF, "fairly reflects the higher costs associated with offering feature rich advanced devices to customers at attractive prices."
LOL too funny
i wonder what legal troubles this will open, i think there is laws in place to stop high etf's i forget what the lwas fall under fair and something i think (just trying to remember something i read somewhere and remember its sometimes state laws stop this i beleive)
just because a company says something doesnt make it legal u know how easy it is to get of of something without a etf
Last edited by newberry; 11-04-2009 at 10:40 PM.
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