I hope anyone considering purchasing a Motorola Droid or HTC Eris falls in love with the phone because ending your contract on Verizon will cost as much as $350. The exorbitant Early Termination Fee (ETF) rumored to be added to the terms of each Verizon contract is very real, meaning anyone who cancels their Verizon contract on “advanced” phones (read: all smartphones, including the Droid and Eris, among others) will have to pay a hefty termination fee. The ETF will drop $10 each month for the length of the contract, but that means it would still cost at least $120 to leave a Verizon contract the month before it expires.
If you purchased a Droid or Eris prior to November 15, you are still under the terms of the previous contract, so this high ETF will not apply to you. Anyone else considering getting an Android phone on Verizon will not be so lucky so they better be sure that it’s a phone they’ll cherish for 2 years. Here’s the text pulled directly from Verizon’s website:
What Happens if My Service Is Canceled Before the End of My Contract Term?
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 after November 14, 2009, your early termination fee will be $350 minus $10 for each full month of your contract term that you complete. (For a complete list of advanced devices, check verizonwireless.com/advanceddevices.) Otherwise, 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 if they charge a separate termination fee.
[Verizon Customer Agreement via Engadget]
Thanks, Jeff! v
November 16th, 2009 at 5:19 pm
This is a little misleading when you put it the context you've presented and you DON'T mention that Verizon also has a free 30 day "test drive". If you dont like a phone or the service you can return your device (with free pre-paid shipping) to nullify your contract. No strings attached. I've been a verizon customer for years, but I did this test drive recently to try out the EnV Touch when it came out. I ended up sending the phone back. It was easy as pie. I'm told new potential verizon customers get the same treatment.
November 16th, 2009 at 5:28 pm
That's not misleading. The "test drive period" is great, but the issue here is that Verizon is doubling their ETF.
November 17th, 2009 at 5:13 am
And let's face it, you can't determine whether or not you truly enjoy a phone in 30 days. Yes, you can review a phone for its features, or its overall quality within just a few weeks, but for someone to truly find out if the phone is a "perfect" fit for them, 30 days may not be long enough. Without a doubt it's better than the previous 15-day standard, but it still isn't enough.
December 3rd, 2009 at 3:19 pm
I think the main point being made here is that many people that wanted a advanced phone from verizon but didn't want to pay full price have been starting a new contract getting the discount on the phone then ending the contract and paying the 175 instead of the full price of the phone. Then taking the phone and moving it to their existing number, this is no longer a good deal.