| Let's look at the 4 points 1 by 1 •Prevent wireless carriers from charging an ETF that is higher than the discount on the cell phone that the wireless company offers consumers for entering into a multi-year contract. For example, if a wireless consumer enters into a 2-year contract and receives a $150 discount with the contract, the ETF cannot exceed $150. Sounds reasonable. Why should the fee be higher than the discount?
•Require wireless carriers to pro-rate their ETFs for consumers who leave their contracts early so that the ETF for a two-year contract would be reduced by half after one year and pro-rated down to zero by the end of a contract term. Again, sounds reasonable.
•Require wireless carriers to provide "clear and conspicuous disclosure" of the ETF at the time of purchase. Sometimes, you got to make salespeople honest and many will lie to make a sale.
•Require monthly billing statements to clearly state the pro-rated fee customers would be charged if they terminate their contracts before the end of the next billing cycle. Again, reasonable.
Why do companies hate informed customers? |
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Reviews:
 ·Comcast
| Because informed customers make better choices and a lot of times those customers informed choices will be to move away from the company to another company.
Classic example of keeping the user uninformed so that they can control the customer.
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"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!" |
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| reply to moonpuppy
I agree with all 4 points.
But the reaction against the amount of Verizon's ETF fee for smartphones of $350 is probably misplaced. They are eating that for all the smartphones they offer. So this bill wouldn't actually reduce this fee amount at all. But making sure it is zero at end of contract is a good feature of the bill.
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KearnstdElf WizardPremium
join:2002-01-22
Mullica Hill, NJ | reply to moonpuppy
what they need to do is not allow ETFs on renewed contracts when no phone upgrades have been made as part of the renewal.
or in short, if the ETF was to recover your free or discounted phone then when you renew the contract and dont change the hardware it would be logical that you shouldnt have an ETF hanging over you as now you are simply cashflow in and minimal cost out to the company.
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[65 Arcanist]Filan(High Elf) Zone: Broadband Reports |
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iansltx
join:2007-02-19
Golden, CO
kudos:2 | reply to moonpuppy
I agree. All the tenets of that bill are reasonable and sensible. Why not? |
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openbox9
join:2004-01-26
Alexandria, VA
kudos:2 | reply to Kearnstd
said by Kearnstd:what they need to do is not allow ETFs on renewed contracts when no phone upgrades have been made as part of the renewal. Why would you renew a contract if you aren't upgrading a phone/device? Why don't you roll into a month-to-month contract? |
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glinc
join:2009-04-07
New York, NY Reviews:
 ·Verizon FiOS
1 edit | reply to moonpuppy
They should also introduced a bill that will put customers in jail if they activate the phone and cancel after 30 days to sell the phone on the internet to make profit. Because clearly, these sort of ETF is aimed at people who does that causing the company to lose money. |
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| said by glinc:They should also introduced a bill that will put customers in jail if they activate the phone and cancel after 30 days to sell the phone on the internet to make profit. Because clearly, these sort of ETF is aimed at people who does that causing the company to lose money. Then Verizon needs to price their phones where this won't happen. Problem with that is they don't want to price themselves out of the market.
Hell, why not even mandate that if they cancel service and customers don't want to pay the ETF that they return the phone.  |
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 NOCManMacChatterPremium
join:2004-09-30
Colorado Springs, CO | reply to moonpuppy
iPhone discount is about 600 dollars. So would you be comfortable with a 600 dollar ETF? |
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 insomniacOh YeahPremium
join:2002-09-22
Naperville, IL | reply to openbox9
One reason: changing your plan to a better one that wasn't previously offered.
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If everything seems to be going well, you've obviously overlooked something. |
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| reply to NOCMan
said by NOCMan:iPhone discount is about 600 dollars. So would you be comfortable with a 600 dollar ETF? I bet Apple wouldn't be selling many iPhones if ATT didn't agree to subsidize it. And ATT took a massive hit on the first generation iPhones so I doubt any others will do a deal like that again. If they do, they deserve to go out of business.
Phone makers will need to see how they will market themselves to service providers and customer alike. |
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wierdo
join:2001-02-16
Tulsa, OK Reviews:
·Cox HSI
 ·T-Mobile US
| reply to NOCMan
said by NOCMan:iPhone discount is about 600 dollars. So would you be comfortable with a 600 dollar ETF? If that's what the actual discount is, then sure, it makes perfect sense.
I hope that if something like this passes we move beyond the stupid discounted phone model. I'd rather get a monthly service discount for signing a contract as is common in other industries.
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It's wierdo, not weirdo. Yes, I know that's not the 'proper' spelling of the similar english language word. |
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| reply to NOCMan
Quote your "reliable" source because your figure is no where near what I have seen.
As a matter of fact I will even go so far to state that Apple could sell the phone outright for $600 and make a very handsome profit on every single one. |
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openbox9
join:2004-01-26
Alexandria, VA
kudos:2 | reply to insomniac
I've never incurred a contract or an extension of a contract for changing/upgrading service. I guess I've been lucky. |
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| said by openbox9:I've never incurred a contract or an extension of a contract for changing/upgrading service. I guess I've been lucky. I guess you have been. Back when I was a VZW customer, they required you to sign a new contract if you wanted to get a new plan. Until recently, they also required a new contract if you got more or less minutes. Or if you called them up. Or if you didn't. Pretty much anything. Ok those last two I made up, but it was almost that bad. |
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