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reply to openbox9
Re: Ridiculous Reporting I think the issue is that the ETF's are not fair and that they are way too high to justify the amount being used simply to recover costs.
The problem is that the consumer has no choice but to either accept the contract, or completely go without any acceptable service at all. When 99% of the customers either don't understand or are too apathetic to care about the contract details, the only real option for those of us that do care is to have some entity with some legitimate power step in and assist.
This is the rational response to not signing the contract. The consumers are responding in the best way that they can. If you think it is an easier task to remove ignorance and apathy from millions of people, you might be able to justify your solution of simply not signing the contract.
Those people that don't agree to the contracts, but see no viable alternative service, are trying to get help. If the ETF's are legitimate and necessary, then the carriers should be able to prove this, and the consumers will have to continue to agree to the current terms or do without the service completely. Having a smattering of savvy shoppers not sign a contract and go without service is not going to do a damn thing to correct the situation.
said by jmn1207:Is that true in Canada? It's not true with VZW (not sure about other US carriers). VZW charges a $350 fee for "advanced devices", prorated by $10/mth of contract fulfilled. Buy an iPhone for $199 on a 2-yr contract, then turn around and break the contract on day 15. Your total cost for a 16 GB iPhone 4S that retails at $649 is ~$539, excluding a month of service ($199 contract price + $350 ETF - $10 prorate). You're $110 ahead of buying the iPhone at retail. Buy the same iPhone and honor 23 months of a 24 month contract, and the iPhone 4S will cost you $319, excluding monthly service charges. Turn around and sell if for a couple hundred bucks and you aren't taking that much of a hit.
I think the issue is that the ETF's are not fair and that they are way too high to justify the amount being used simply to recover costs.
said by VZW Customer Agreement :
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 after November 14, 2009, your Early Termination Fee will be $350 minus $10 for each full month of your contract term that you complete.