Hear Us Now: Verizon to Double Early Termination Fees: Statement by Consumers Union


Verizon to Double Early Termination Fees: Statement by Consumers Union Posted by Bob at 11/05/09 04:39 PM Share Email Print FOR IMMEDIATE RELEASE Wednesday, November 4, 2009 WASHINGTON, D.C. – Verizon, the nation’s largest wireless phone service provider, is doubling its early termination fee to $350 for advanced devices such as smartphones. Joel Kelsey, policy analyst for Consumers Union, the nonprofit publisher of Consumer Reports magazine, said Verizon’s move makes it harder for customers to shop around for phones and service plans. “When people want to switch wireless services, the biggest cost they face is early termination fees,” Kelsey said. “These fees do not save customers money, as some companies have claimed. These fees hurt consumers, and they make the wireless marketplace less competitive. Early termination fees are designed to lock people into long-term contracts and stop them from getting better deals. Verizon’s move is painful proof that it’s time for lawmakers to crack down on these fees.” Media Contact: David Butler or Kristina Edmunson, Consumers Union, 202-462-6262, dbutler@consumer.org or kedmunson@consumer.org Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.				Read stories that consumers have shared, or share your own personal story. Airport Scanners Can Store, Transmit Images Contrary to public statements made by the Transportation Security Administration, full-body airport scanners do have the ability to store and transmit images, according to documents obtained by the Electronic Privacy Information Center. Google Apologizes to Chinese Authors HONG KONG — Google has agreed to hand over a list of books by Chinese authors that it has scanned in recent years, company executives said Monday, in an apparent effort to placate writers who say their works were digitized without their permission. Google Nexus One buyers frustrated about help Owners of Google's Nexus One phone may be early adopters, but some of them are also getting an early share of problems with phone and customer service, according to complaints being posted on various forums. Two year contract trend could reverse by 2011 Operators will need to offer extra services to lock in savvy customers, say analysts. Aggressively priced smartphones and up front payments on hardware could see the trend towards two year contracts reversed by 2011. Analyst Gartner says it expects 12 month contracts to return to the norm in two years' time, as consumers move away from Sim-only in improved economic conditions. And there will be more pressure on operators to provide reasonable prices on those 12 month contracts, even on heavily subsidized smartphones. The Network Neutrality Debate Is far From Over In the epic battle between giant corporations and pirates of digital media, the latter faction has struck a severe blow with the help of regulators at the FCC. Bureaucrats soon will be penning regulations that will keep the Internet free forever from -- well, regulation. Meanwhile, Internet service providers (ISPs) like Comcast and AT&T will slink back to their caves to bemoan their inability to further mine profit from customers.