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Verizon Wireless doubles early termination fee
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Jim_Higgins  
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 Mais opções 8 nov, 21:06
Grupos de notícias: alt.cellular.verizon
De: Jim_Higgins <gordian...@hotmail.com>
Data: Sun, 08 Nov 2009 15:06:44 -0800
Local: Dom 8 nov 2009 21:06
Assunto: Verizon Wireless doubles early termination fee
Verizon Wireless doubles early termination fee
http://preview.tinyurl.com/yg57yz4

Starting Nov. 15,  Verizon plans to double its early termination fee
(ETF) -- to $350 -- for customers who end their cellphone contracts
early.  The fee, arriving just in time for the holidays, applies to
customers who have a smart phone or other advanced device on a one or
two year contract.

The penalty will decrease by $10 for each month of service completed. If
a customer completes five months of service, the penalty would be
reduced to $300, for example.
The fee, the highest ever imposed by a major carrier, “is insane,” says
Joel Kelsey of Consumers Union, the USA’s largest consumer group.
“There’s no justification” for a fee that high, he says. “It’s punitive
to customers who decide to leave Verizon early.”

Not so says Verizon. “This has to do with the cost we pay for the
device,” says spokesman Jim Gerace. Verizon customers, he notes, can buy
a subsidized Blackberry for as little as $99. What Verizon pays to
Blackberry-maker Research In Motion, however, “is far north of that,” he
says.

The wireless industry has long subsidized devices to hold down retail
costs, then charged customers a penalty if they exited their contracts
early. The standard ETF is currently around $175 to $200. It was
established years ago, when expensive smart phones, netbooks and other
advanced devices didn’t exist, Gerace says.

Gerace says ETFs on other Verizon wireless devices, such as standard
cellphones, won’t change. The current ETF is $175, and it decreases by
$5 a month for each month of the contract’s term that is completed.

Kelsey says he’s unimpressed. “ETFs are already too high,” he says.
“This ($350 fee) is absolutely ridiculous."

Update: Gerace contacted us to point out that all Verizon phones,
including smart devices, are available without a contract at a full,
unsubsidized, price. But be prepared to pay up. Example: The Blackberry
Storm 2. Verizon sells it for $179 with a two year contract and, soon, a
$350 ETF. Or you can pay full retail -- $539 -- with no contract or ETF.


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RBM  
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 Mais opções 8 nov, 21:44
Grupos de notícias: alt.cellular.verizon
De: "RBM" <r...@live.com>
Data: Sun, 8 Nov 2009 18:44:35 -0500
Local: Dom 8 nov 2009 21:44
Assunto: Re: Verizon Wireless doubles early termination fee

"Jim_Higgins" <gordian...@hotmail.com> wrote in message

news:hd7iu7$2ag$1@news.eternal-september.org...

I don't have a problem with them subsidizing the cost of a device, which I'm
paying for as part of my monthly service charge, but once my two year term
is up, unless I get another subsidized device, my service charges should go
down, as I'm no longer paying for a subsidized device, but they don't

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Carl  
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 Mais opções 8 nov, 22:02
Grupos de notícias: alt.cellular.verizon
De: "Carl" <croth...@NOSPAMoptonline.net>
Data: Sun, 8 Nov 2009 19:02:57 -0500
Local: Dom 8 nov 2009 22:02
Assunto: Re: Verizon Wireless doubles early termination fee

I don't understand what about Verizon's position consumers don't get. The
phones are expensive. Verizon subsidizes them if you take a plan, which is
by the way, a contract. Not a one-way contract, but one with obligations by
both parties. If you want to break your end of the contract, you must pay
for the phone. What's so hard to grasp about that?  Verizon is not a public
service utility. It is a profit-making company. How many of you are in
business? How many of you have prices and rules only to benefit the
customers and not your bottom line?

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Carl  
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 Mais opções 8 nov, 22:06
Grupos de notícias: alt.cellular.verizon
De: "Carl" <croth...@NOSPAMoptonline.net>
Data: Sun, 8 Nov 2009 19:06:03 -0500
Local: Dom 8 nov 2009 22:06
Assunto: Re: Verizon Wireless doubles early termination fee

Nobody runs their business that way and neither do you, supposing you have
one.  If you're not happy with the rules, either don't play or take the new
phone. Vz is a profit-making company, not a public service.  They have a
right to not adjust your monthly rate. Those rules are explained right up
front. Get over it.

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NotMe  
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 Mais opções 8 nov, 22:32
Grupos de notícias: alt.cellular.verizon
De: "NotMe" <m...@privacy.net>
Data: Sun, 8 Nov 2009 18:32:00 -0600
Assunto: Re: Verizon Wireless doubles early termination fee

"Carl" <croth...@NOSPAMoptonline.net> wrote in message

news:4af75c30$0$5017$607ed4bc@cv.net...
: Jim_Higgins wrote:

: > Verizon Wireless doubles early termination fee
: > http://preview.tinyurl.com/yg57yz4
: >
: > Starting Nov. 15,  Verizon plans to double its early termination fee
: > (ETF) -- to $350 -- for customers who end their cellphone contracts
: > early.  The fee, arriving just in time for the holidays, applies to
: > customers who have a smart phone or other advanced device on a one or
: > two year contract.
: >
: > The penalty will decrease by $10 for each month of service completed.
: > If a customer completes five months of service, the penalty would be
: > reduced to $300, for example.
: > The fee, the highest ever imposed by a major carrier, “is insane,”
: > says Joel Kelsey of Consumers Union, the USA’s largest consumer group.
: > “There’s no justification” for a fee that high, he says. “It’s
: > punitive to customers who decide to leave Verizon early.”
: >
: > Not so says Verizon. “This has to do with the cost we pay for the
: > device,” says spokesman Jim Gerace. Verizon customers, he notes, can
: > buy a subsidized Blackberry for as little as $99. What Verizon pays to
: > Blackberry-maker Research In Motion, however, “is far north of that,”
: > he says.
: >
: > The wireless industry has long subsidized devices to hold down retail
: > costs, then charged customers a penalty if they exited their contracts
: > early. The standard ETF is currently around $175 to $200. It was
: > established years ago, when expensive smart phones, netbooks and other
: > advanced devices didn’t exist, Gerace says.
: >
: > Gerace says ETFs on other Verizon wireless devices, such as standard
: > cellphones, won’t change. The current ETF is $175, and it decreases by
: > $5 a month for each month of the contract’s term that is completed.
: >
: > Kelsey says he’s unimpressed. “ETFs are already too high,” he says.
: > “This ($350 fee) is absolutely ridiculous."
: >
: > Update: Gerace contacted us to point out that all Verizon phones,
: > including smart devices, are available without a contract at a full,
: > unsubsidized, price. But be prepared to pay up. Example: The
: > Blackberry Storm 2. Verizon sells it for $179 with a two year
: > contract and, soon, a $350 ETF. Or you can pay full retail -- $539 --
: > with no contract or ETF.
: >
: I don't understand what about Verizon's position consumers don't get. The
: phones are expensive. Verizon subsidizes them if you take a plan, which is
: by the way, a contract. Not a one-way contract, but one with obligations
by
: both parties. If you want to break your end of the contract, you must pay
: for the phone. What's so hard to grasp about that?  Verizon is not a
public
: service utility. It is a profit-making company. How many of you are in
: business? How many of you have prices and rules only to benefit the
: customers and not your bottom line?

Correct me if I'm wrong if if I have my own phone I'm still subject to the
ETF.


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XS11E  
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 Mais opções 8 nov, 22:50
Grupos de notícias: alt.cellular.verizon
De: XS11E <xs11...@SPAMyahoo.com>
Data: Sun, 08 Nov 2009 17:50:52 -0700
Local: Dom 8 nov 2009 22:50
Assunto: Re: Verizon Wireless doubles early termination fee

"NotMe" <m...@privacy.net> wrote:
> Correct me if I'm wrong if if I have my own phone I'm still
> subject to the ETF.

You're wrong.  You can sign on to VZW w/o a contract if you have your
own phone, exactly the situation that I'm in now.

--
XS11E, Killing all posts from Google Groups
The Usenet Improvement Project:
http://twovoyagers.com/improve-usenet.org/


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Dennis Ferguson  
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 Mais opções 9 nov, 00:31
Grupos de notícias: alt.cellular.verizon
De: Dennis Ferguson <dcfergu...@pacbell.net>
Data: Sun, 08 Nov 2009 20:31:51 -0600
Local: Seg 9 nov 2009 00:31
Assunto: Re: Verizon Wireless doubles early termination fee
On 2009-11-09, Carl <croth...@NOSPAMoptonline.net> wrote:

> RBM wrote:
>> I don't have a problem with them subsidizing the cost of a device,
>> which I'm paying for as part of my monthly service charge, but once
>> my two year term is up, unless I get another subsidized device, my
>> service charges should go down, as I'm no longer paying for a
>> subsidized device, but they don't

> Nobody runs their business that way and neither do you, supposing you have
> one.  If you're not happy with the rules, either don't play or take the new
> phone. Vz is a profit-making company, not a public service.  They have a
> right to not adjust your monthly rate. Those rules are explained right up
> front. Get over it.

Actually, mobile companies in many (most?) other countries run their
business exactly like that.  Plans which aren't paying for a phone are
cheaper than equivalent plans which came with a phone.  Even in the US
T-Mobile gives you a $10/month break on their contract-free,
no-phone-subsidy plans now.

Unfortunately the market in the US doesn't seem to be as intensely
price-competitive as other places so the carriers can mostly get
away with taking higher margins from out-of-contract customers.

Dennis Ferguson


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NotMe  
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 Mais opções 9 nov, 01:55
Grupos de notícias: alt.cellular.verizon
De: "NotMe" <m...@privacy.net>
Data: Sun, 8 Nov 2009 21:55:08 -0600
Local: Seg 9 nov 2009 01:55
Assunto: Re: Verizon Wireless doubles early termination fee

"XS11E" <xs11...@SPAMyahoo.com> wrote in message

news:Xns9CBDB58EE3D46xs11eyahoocom@127.0.0.1...
: "NotMe" <m...@privacy.net> wrote:

:
: > Correct me if I'm wrong if if I have my own phone I'm still
: > subject to the ETF.
:
: You're wrong.  You can sign on to VZW w/o a contract if you have your
: own phone, exactly the situation that I'm in now.

That was the way it was after my last contract expired.  And I did drop
service for several years.  I called VZN the other day to re-up and was told
I could get a higher no contract rate or go for a term contract and get a
package rate and be subject to early terminate fee if I canceled before the
end of the term.

So what am I missing? (other than a clued in CS rep?)


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Larry  
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 Mais opções 9 nov, 02:45
Grupos de notícias: alt.cellular.verizon
De: Larry <no...@home.com>
Data: Mon, 09 Nov 2009 04:45:25 +0000
Local: Seg 9 nov 2009 02:45
Assunto: Re: Verizon Wireless doubles early termination fee
Jim_Higgins <gordian...@hotmail.com> wrote in news:hd7iu7$2ag$1
@news.eternal-september.org:

> Verizon Wireless doubles early termination fee
> http://preview.tinyurl.com/yg57yz4

> Starting Nov. 15,  Verizon plans to double its early termination fee
> (ETF) -- to $350 -- for customers who end their cellphone contracts
> early.  The fee, arriving just in time for the holidays, applies to
> customers who have a smart phone or other advanced device on a one or
> two year contract.

What a great opportunity to walk away to a prepaid service like Pageplus
with no contract, no ETF, no tax/funny fees and no funny business like the
paragraph above this one.

Wow....$350 x 5.3c/min = 6,603 minutes on PagePlus!...110 HOURS of TALKING!

--
Larry


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Larry  
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 Mais opções 9 nov, 02:47
Grupos de notícias: alt.cellular.verizon
De: Larry <no...@home.com>
Data: Mon, 09 Nov 2009 04:47:39 +0000
Local: Seg 9 nov 2009 02:47
Assunto: Re: Verizon Wireless doubles early termination fee
"Carl" <croth...@NOSPAMoptonline.net> wrote in
news:4af75cea$0$4992$607ed4bc@cv.net:

> Nobody runs their business that way and neither do you, supposing you
> have one.  If you're not happy with the rules, either don't play or
> take the new phone. Vz is a profit-making company, not a public
> service.  They have a right to not adjust your monthly rate. Those
> rules are explained right up front. Get over it.

Yeah!  Bend over and take it like a MAN!......

http://nordicgroup.us/prepaid/pageplus.html
Or, just fuck 'em quietly, gently but firmly....(c;]

--
Larry


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Larry  
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 Mais opções 9 nov, 02:51
Grupos de notícias: alt.cellular.verizon
De: Larry <no...@home.com>
Data: Mon, 09 Nov 2009 04:51:32 +0000
Local: Seg 9 nov 2009 02:51
Assunto: Re: Verizon Wireless doubles early termination fee
"Elmo P. Shagnasty" <el...@nastydesigns.com> wrote in news:elmop-
D2A196.19405608112...@news.eternal-september.org:

> The very same phone is available on the shelf at Walmart and Target for
> $20 ($17 on sale), for use with Verizon prepaid service.

> And in fact, the phone is not locked to Verizon's prepaid service.  It
> may be locked to the Verizon network, but it works just fine with
> PagePlus prepaid service.  Therefore, the whole "we're subsidizing the
> cost so you'll use our service" thing is fishy right from the beginning.

http://nordicgroup.us/prepaid/pageplus.html
....for further great information.....(c;]

--
Larry


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XS11E  
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 Mais opções 9 nov, 04:13
Grupos de notícias: alt.cellular.verizon
De: XS11E <xs11...@SPAMyahoo.com>
Data: Sun, 08 Nov 2009 23:13:21 -0700
Local: Seg 9 nov 2009 04:13
Assunto: Re: Verizon Wireless doubles early termination fee

A clued CS rep.  I'm paying EXACTLY the same rate for the same plan
that I had when I left but I didn't drop service for as long as you
did.

--
XS11E, Killing all posts from Google Groups
The Usenet Improvement Project:
http://twovoyagers.com/improve-usenet.org/


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Carl  
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 Mais opções 9 nov, 08:57
Grupos de notícias: alt.cellular.verizon
De: "Carl" <croth...@NOSPAMoptonline.net>
Data: Mon, 9 Nov 2009 05:57:03 -0500
Local: Seg 9 nov 2009 08:57
Assunto: Re: Verizon Wireless doubles early termination fee

You may have a point there. But what we (the layman-consumer) don't know is
if that $40/month basic plan (for one example) has a large enough profit
margin in it to cover both the service AND the cost of a phone within only
24 months.

Perhaps Verizon (and others in the U.S.) work on a sort of 'capitation'
system: that is, they depend on people continuing the service without taking
a new phone to defray the costs of the people who do take phones; sort of an
'averaging out' system.

I doubt this is correct, but if it is, then our way of thinking would be
incorrect.


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Carl  
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 Mais opções 9 nov, 09:03
Grupos de notícias: alt.cellular.verizon
De: "Carl" <croth...@NOSPAMoptonline.net>
Data: Mon, 9 Nov 2009 06:03:15 -0500
Local: Seg 9 nov 2009 09:03
Assunto: Re: Verizon Wireless doubles early termination fee

Of course. What he's missing is that he dropped the service. There are
'loyalty' benefits. You haven't demonstrated being a loyal customer, so you
forfeited those benefits. Again, looking at the business-for-profit model
and not the 'consumer-is-always-protected' model, it costs the company more
for people who come and go. Thus, they should pay more.

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Carl  
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 Mais opções 9 nov, 09:23
Grupos de notícias: alt.cellular.verizon
De: "Carl" <croth...@NOSPAMoptonline.net>
Data: Mon, 9 Nov 2009 06:23:05 -0500
Local: Seg 9 nov 2009 09:23
Assunto: Re: Verizon Wireless doubles early termination fee

Elmo-

I visited both the Walmart and Target websites. Neither of them had the
Smooth and, in both cases the lowest priced Samsung phone they offered was
$40, going up into the $60 range. That would be more in line with Vz's $70
'list price'.

So, I don't know what scam these two 'discount retailers' were running on
that Smooth at the time you saw it, but perhaps it's a discontinued model,
or perhaps they used it as one of their many 'loss leaders'- items they sell
below cost to get people into the store with the hope that they'll upgrade
their purchase once inside.

I don't think it's ever fair play to compare prices at stores like the two
you've named with other businesses. I don't know how they run their
businesses like that but they have been responsible for putting more than
one mom n pop store out of business and I believe their business practices
are in the grey area.

I also read Larry's post on Pageplus, and their service model seems a little
shady to me too. Read the list of 'cons' for yourself and decide if you'd
prefer to be left at their mercy if they were the only game in town.

Put in a shortened manner: if you believe that a sophisticated electronic
device like a cell phone can be sold at a reasonable profit for $17, then I
have a bridge to sell you in Brooklyn.


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RBM  
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 Mais opções 9 nov, 10:31
Grupos de notícias: alt.cellular.verizon
De: "RBM" <r...@live.com>
Data: Mon, 9 Nov 2009 07:31:47 -0500
Local: Seg 9 nov 2009 10:31
Assunto: Re: Verizon Wireless doubles early termination fee

"Carl" <croth...@NOSPAMoptonline.net> wrote in message

news:4af75cea$0$4992$607ed4bc@cv.net...

It's not a matter of "getting over" anything. Yes, I do run a business, and
no, I don't charge my customers for something that I'm no longer providing
them. It boggles me that anyone would think this practice is acceptable


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RBM  
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 Mais opções 9 nov, 10:36
Grupos de notícias: alt.cellular.verizon
De: "RBM" <r...@live.com>
Data: Mon, 9 Nov 2009 07:36:25 -0500
Local: Seg 9 nov 2009 10:36
Assunto: Re: Verizon Wireless doubles early termination fee

"NotMe" <m...@privacy.net> wrote in message

news:hd7nul$d50$1@news.eternal-september.org...


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SMS  
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 Mais opções 9 nov, 12:30
Grupos de notícias: alt.cellular.verizon
De: SMS <scharf.ste...@geemail.com>
Data: Mon, 09 Nov 2009 06:30:36 -0800
Local: Seg 9 nov 2009 12:30
Assunto: Re: Verizon Wireless doubles early termination fee

Elmo P. Shagnasty wrote:
> And in fact, the phone is not locked to Verizon's prepaid service.  It
> may be locked to the Verizon network, but it works just fine with
> PagePlus prepaid service.  Therefore, the whole "we're subsidizing the
> cost so you'll use our service" thing is fishy right from the beginning.

Or perhaps Verizon figures that even if the buyer activates on PagePlus
it still means revenue for Verizon (versus the buyer going with a
Tracfone, Virgin phone, or prepaid from AT&T or T-Mobile). It's not even
clear that over the long term the InPulse customer provides more revenue
than the PagePlus customer because the InPulse customer will likely soon
realize how expensive InPulse actually is, and churn to another service,
probably on another carrier because they're unhappy with Verizon.

> So, Carl, what is the real price of that particular phone--is it $70?  
> Or is it $17?

> That $70 number that VZW puts out on its web site is just a random
> number, with no actual connection to VZW's cost of doing business in any
> way.  They just decided to price it along the random continuum of prices
> that they claim their phones "should" cost or "would cost if you bought
> it without a contract".  No, it absolutely DOESN'T cost $70 if you
> bought it without a contract. It would cost $17.

So few people know about PagePlus that Verizon doesn't worry all that
much about people buying the $20 prepaid phones and not activating them
on InPulse. Low end GSM phones cost about $20 wholesale, and the CDMA
phones are little more because of the lower quantities and the higher
royalties to Qualcomm. I expect that Wal-Mart's getting those phones
(I've seen the Samsung for as low as $15) for $10-12, so Verizon is
certainly still subsidizing them.

> But before you answer that, first you have to tell us what the real
> price of the Samsung Smooth should be--$70 or $17.  More importantly,
> tell us why, and tell us why it's advertised and available at the OTHER
> price.

It's still a subsidized price. The buyer of the $15-20 Samsung Smooth is
still buying Verizon service, either directly from Verizon, or via a
companly like PagePlus.

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SMS  
Ver perfil   Traduzir para Traduzido (ver original)
 Mais opções 9 nov, 12:33
Grupos de notícias: alt.cellular.verizon
De: SMS <scharf.ste...@geemail.com>
Data: Mon, 09 Nov 2009 06:33:30 -0800
Local: Seg 9 nov 2009 12:33
Assunto: Re: Verizon Wireless doubles early termination fee

RBM wrote:
> I don't have a problem with them subsidizing the cost of a device, which I'm
> paying for as part of my monthly service charge, but once my two year term
> is up, unless I get another subsidized device, my service charges should go
> down, as I'm no longer paying for a subsidized device, but they don't

That's why if you're planning to stay with the carrier for another two
years, as soon as you're eligible you should get a replacement phone
that has the greatest differential between the price you pay and the
price you can sell it for on craigslist or eBay, and unload it there.

Alas for the smart phones this doesn't work unless you already are
paying for service with a data plan because you can't get a smart phone
without a data plan any more.


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Carl  
Ver perfil   Traduzir para Traduzido (ver original)
 Mais opções 9 nov, 14:44
Grupos de notícias: alt.cellular.verizon
De: "Carl" <croth...@NOSPAMoptonline.net>
Data: Mon, 9 Nov 2009 11:44:50 -0500
Local: Seg 9 nov 2009 14:44
Assunto: Re: Verizon Wireless doubles early termination fee

We'll agree to disagree. You don't know that they're charging you for
something that they're no longer providing. You don't know that the cost of
the 'free' phone plus the service is fully covered within a brief 24 month
period. You're only assuming that. Perhaps the way it works is that the
provider depreciates the cost of the phones over a much longer period of
time and relies on old customers remaining loyal to the company in order to
support the new ones who come in and take the free phones.  The point is
that you don't know, not whether my supposition is right or wrong. Until we
do know, we should lose the hostile attitude towards the "company". If you
are in business for yourself, you should know that there are variables that
customers and non-business owners don't factor in. I'll bet you have to
defend your prices all the time. I know I do. And as long as I have to
defend my prices, I will always give the benefit of the doubt to the other
guy.

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Carl  
Ver perfil   Traduzir para Traduzido (ver original)
 Mais opções 9 nov, 14:50
Grupos de notícias: alt.cellular.verizon
De: "Carl" <croth...@NOSPAMoptonline.net>
Data: Mon, 9 Nov 2009 11:50:04 -0500
Local: Seg 9 nov 2009 14:50
Assunto: Re: Verizon Wireless doubles early termination fee
Elmo P. Shagnasty wrote:
> In article <4af7fb99$0$22524$607ed...@cv.net>,
> "Carl" <croth...@NOSPAMoptonline.net> wrote:

>> Put in a shortened manner: if you believe that a sophisticated
>> electronic device like a cell phone can be sold at a reasonable
>> profit for $17, then I have a bridge to sell you in Brooklyn.

> You are as dense as the sun.

I'm a fairly successful business person for a dense one, Elmo. I'd like to
see if the same is true for you.  Resorting to name-calling doesn't speak
well for you.

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SMS  
Ver perfil   Traduzir para Traduzido (ver original)
 Mais opções 9 nov, 15:16
Grupos de notícias: alt.cellular.verizon
De: SMS <scharf.ste...@geemail.com>
Data: Mon, 09 Nov 2009 09:16:45 -0800
Local: Seg 9 nov 2009 15:16
Assunto: Re: Verizon Wireless doubles early termination fee

Carl wrote:
> I visited both the Walmart and Target websites. Neither of them had the
> Smooth and, in both cases the lowest priced Samsung phone they offered was
> $40, going up into the $60 range. That would be more in line with Vz's $70
> 'list price'.

If you go to the store, the Samsung Smooth is regularly available for
$20, and I've seen it as low as $15. Also sold at Walgreen's for around
$40. Probably Verizon is wholesaling it these stores for $10 or so.

> I also read Larry's post on Pageplus, and their service model seems a little
> shady to me too. Read the list of 'cons' for yourself and decide if you'd
> prefer to be left at their mercy if they were the only game in town.

LOL, they're one of the oldest players in prepaid, if among the least
well known.

> Put in a shortened manner: if you believe that a sophisticated electronic
> device like a cell phone can be sold at a reasonable profit for $17, then I
> have a bridge to sell you in Brooklyn.

Verizon knows that most buyers of their prepaid phones will be
activating them on InPulse. Even the prepaid phones are subsidized. For
those few people that know about PagePlus, and know that the InPulse
phones can be used on PagePlus, Verizon still eventually gets revenue
from those sales as well since PagePlus is buying minutes and MB at
wholesale prices from Verizon.

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SMS  
Ver perfil   Traduzir para Traduzido (ver original)
 Mais opções 9 nov, 15:24
Grupos de notícias: alt.cellular.verizon
De: SMS <scharf.ste...@geemail.com>
Data: Mon, 09 Nov 2009 09:24:35 -0800
Local: Seg 9 nov 2009 15:24
Assunto: Re: Verizon Wireless doubles early termination fee

Elmo P. Shagnasty wrote:
> The point is, there is ZERO relationship between VZW's cost of acquiring
> the device and the various prices that VZW itself "sells" the device for.

Many businesses sell the same product for wildly different prices
depending on the distribution channel. They depend on customers not
knowing how to purchase the products through the least expensive channel.

> And they both sell various parts of their business at whatever price
> they can get at any given time, regardless of anything else.  The price
> the customer pays is dependent solely upon the deal the customer can
> negotiate, and everyone's deal is a little different (and sometimes a
> lot different).

As with cars, houses, appliances, airline tickets, hotels, etc.

The bottom line is that there was a loophole for the devices like the
Droid. You could sign up for service, obtain a Droid, then cancel and
pay $175 ETF and have a Droid for about $400, which is probably about
what Verizon pays Motorola for one.

With a $350 ETF it would cost you about $600 to acquire a Droid in this
manner.

Of course Verizon's customers are free to buy handsets without a subsidy
at all, in which case there is no ETF at all. And while InPulse prepaid
phones can be used on PagePlus, I don't think Verizon still allows them
to be used on Verizon postpaid accounts.

Personally I think that the $350 ETF is going to backfire on Verizon and
result in lost sales and customers to carriers that sell smart phones
without such a high ETF.


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SMS  
Ver perfil   Traduzir para Traduzido (ver original)
 Mais opções 9 nov, 15:42
Grupos de notícias: alt.cellular.verizon
De: SMS <scharf.ste...@geemail.com>
Data: Mon, 09 Nov 2009 09:42:35 -0800
Local: Seg 9 nov 2009 15:42
Assunto: Re: Verizon Wireless doubles early termination fee

Elmo P. Shagnasty wrote:
> VZW is putting random prices onto the same phone under different
> circumstances, because the price of the phone has nothing to do with
> anything.  It's all about getting people to use the service.

The price of the phone has _everything_ to do with getting people to use
prepaid services.

The prepaid buyer isn't going to pay $70 for a prepaid phone when there
are phones on the rack for $20 that have airtime prices that are
comparable to InPulse.

PagePlus throws a monkey wrench in there by offering far better airtime
prices than InPulse, with service that works on the highly subsidized
InPulse phones. For the minimal user of PagePlus, paying $2.50/month, it
would take many years of use for Verizon to make back the subsidy via
the wholesale airtime revenue they get from PagePlus.

One of the reasons PagePlus has remained a niche player is because they
don't have phones for sale on the rack at Target, Wal-Mart, and
Walgreen's. Nor is there anything on their web site that advises
potential customers to go pick up an InPulse phone to use on their service.


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Larry  
Ver perfil   Traduzir para Traduzido (ver original)
 Mais opções 9 nov, 15:45
Grupos de notícias: alt.cellular.verizon
De: Larry <no...@home.com>
Data: Mon, 09 Nov 2009 17:45:28 +0000
Local: Seg 9 nov 2009 15:45
Assunto: Re: Verizon Wireless doubles early termination fee
"Elmo P. Shagnasty" <el...@nastydesigns.com> wrote in
news:elmop-E3E043.09550909112009@news.eternal-september.org:

So, Elmo, tell us the truth about activating an InPulse on PagePlus to
CORRECT his method....instead of the usual trashing of the messenger.

How do you buy a cheap InPulse and put it on PagePlus, Elmo.  I'm sure
everyone interested would like to know the CORRECT, according to you,
way.....

--
Larry


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