A complaint by the FCC which investigated the highly debatable charges incurred by some customers who accidentally access mobile broadband services and the increase in early termination fees (ETF) for advanced mobile devices by Verizon Wireless has now seen the telecommunications company issue its response.
The accusation that it charges its customers $1.99 for accessing the Mobile Web by mistake was dismissed by the Verizon and it defended its increase to the EFT. The EFT fee is not limited to the recovery of a devices wholesale purchase price claimed Verizon in its justification for the price increase. In order to partially offset the overall cost of running a network that can be used by smartphone the EFT was a necessary requirement it said.
In order to maintain a broadband network there is a cost, as well as a cost to provide technical support of devices on the network and to sell the device there are store costs, advertising, device subsidy and commission it said.
The number of advanced devices using its network is increasing on a constant basis and “the overall cost to the company for providing and supporting devices to customers at low up-front cost has increased substantially” Verizon also reminded the FCC.
Verizon also claimed that “still incurs a financial loss from early terminations, even with the $350 ETF” in response to a query from the FCC as to why users who cancel in the 23rd month of a 24 month contract still have to pay a $120 EFT.
Verizon went on to deny that there were any errors in Mobile Web data charges in response to a large number of reports of erroneous charges instead of admitting any kind of responsibility. The responses given by Verizon are currently being looked into by the FCC which should announce its finding shortly.
Source – Boy Genius Report