May/100
AT&T follows Verizon, jacks up ETF on netbooks and smartphones
There’s the good kind of follow-the-leader, and then there’s this. While the world cheered as all four major US wireless carriers implemented prorated early termination fees, we can all hang our heads accordingly for this one: AT&T has just followed Verizon Wireless’ march into the dark, evil corners of contractland by adjusting ETFs higher for netbooks and smartphones. In an email sent out to select customers, the carrier notes that beginning on June 1st (that’s less than a fortnight away), customers who select “advanced, higher-end device[s], including netbooks and smartphones, will have an ETF of $325, reduced by $10 for each month during the balance of the service agreement.” That’s up significantly over the $175 ETF that affects all of AT&T’s handsets today, though still $25 less than VZW’s plan. The silver lining — if you could call it that — comes with this point: customers “who are buying basic and quick messaging phones will have a lower ETF of $150, reduced by $4 for each month during the balance of the service agreement.” Naturally, existing contract customers won’t see any immediate change, but you can bet you’ll be nailed with the new terms once you head in this summer to pre-order that iPhone 4G. The full memo is posted after the break — so much for “rethinking possible,” huh?
Update: AT&T has published an “open letter” explaining the changes. Thanks, Daniel!
[Thanks, L.]
Continue reading AT&T follows Verizon, jacks up ETF on netbooks and smartphones
AT&T follows Verizon, jacks up ETF on netbooks and smartphones originally appeared on Engadget on Fri, 21 May 2010 15:39:00 EDT. Please see our terms for use of feeds.
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Mar/100
Palm offering discounted contract-free phones to developers — too bad they’re carrier locked
Usually when we hear the phrase “contract-free developer phone” the words “unlocked” and “GSM” follow shortly thereafter, but apparently Palm didn’t get the memo — it just announced discounted hardware prices for its devices, but they’re carrier-locked to Verizon and Sprint. Yeah, that’s a big sad face out of us — it’s not like Verizon’s going to give you a cheaper plan if you show up with a contract-free device. In fact, you might be better off picking up a $79 Pre on a Sprint contract from Amazon and just canceling after a year or so — the ETF will have been prorated to $120 by then, putting you way ahead of Palm’s $439 price tag. So much for that dream — at least we still have our fantasy of driving to Mexico for an illicit Telcel Pre smuggling run.
Palm offering discounted contract-free phones to developers — too bad they’re carrier locked originally appeared on Engadget on Fri, 12 Mar 2010 20:45:00 EST. Please see our terms for use of feeds.
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Feb/100
Telava 3G Broadband Bullet kills mobile broadband contracts dead
3G anywhere is great, but locking yourself into a two (plus) year contract to get access to it is decidedly less-so. Enter Telava, a prepaid wireless company that is launching its so-called Broadband Bullet. It’s a simple USB modem that you can pop into your port-having device and get online at typical 3G speeds, the interesting thing being here that your $50 a month for 5GB ($60 for unlimited) comes without a contract. You can pay for one month, take a month off, then pay for the next two, switch between 5GB and unlimited, and generally do whatever you like without getting hit with an ETF. What you will get hit with is a $100 up-front security deposit, or you can pay $200 if for some crazy reason you want to keep the thing. Telava promises “nationwide coverage everywhere,” and while we’re not sure which network it’s piggy-backing on the coverage map looks reasonably comprehensive, so go get some, infrequent travelers.
Update: As a few of you have pointed out in comments, this appears to be T-Mo’s network it’s piggy-backing on.
Telava 3G Broadband Bullet kills mobile broadband contracts dead originally appeared on Engadget on Thu, 25 Feb 2010 07:54:00 EST. Please see our terms for use of feeds.
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Feb/100
Verizon, AT&T, Sprint, T-Mobile, and Google all respond to FCC’s ETF inquiry
All of the players roped into the FCC’s early termination fee inquiry — T-Mobile, Sprint, AT&T, Verizon, and Google — have met the Fed’s February 23 deadline for responding, and needless to say, you could destroy a small forest with the amount of paperwork that’s been sent back to Washington. The majority of the inquiry focused on carriers’ ETF pricing structure and whether there are different ETFs involved based on the device a customer chooses, and the subtleties in the differences between answers from different carriers are pretty fascinating.
T-Mobile seems resolute that a single $200 ETF is the way to go and emphasizes that its customers can avoid the fee altogether by going with an Even More Plus plan, while Sprint says that it “continue[s] to evaluate the market” with regard to a multiple ETF setup. Google, meanwhile, is quick to note that it’s just dropped its $350 Equipment Recovery Fee down to $150, though that amount still effectively represents the only device in T-Mobile’s subsidized lineup that commands a grand total ETF greater than $200 upon cancellation — but it gets even better later on when they get snippy for being lumped in with carriers on the inquiry and remind the FCC that the ERF reduction had been in the planning stages prior to the inquiry being issued. At any rate, they note that the ERF isn’t intended as a revenue stream — rather, it’s a way to recoup the losses Google incurs when T-Mobile asks for its commission back if a customer cancels within 120 days (as you might imagine, T-Mobile conveniently fails to mention this point in its own reply).
Verizon — which effectively triggered this whole mess by introducing its two-tier ETF — basically echoes much of what it said in its last response, a surprising move considering the Commission’s general displeasure with it, so it’ll be interesting to see what kind of reaction it garners this time around. AT&T takes perhaps the most pragmatic approach through most of its response, answering the FCC’s questions very matter-of-factly, but goes into a great deal of depth rationalizing early termination fees at the tail end and takes the opportunity to remind everyone that they’ve offered both commitment-free month-to-month and prepaid service for many years.
Something tells us this isn’t the last we’ve heard on the subject, but for the time being, check out everyone’s responses in the galleries below (more after the break).
[Thanks, Dan P.]
Continue reading Verizon, AT&T, Sprint, T-Mobile, and Google all respond to FCC’s ETF inquiry
Verizon, AT&T, Sprint, T-Mobile, and Google all respond to FCC’s ETF inquiry originally appeared on Engadget on Tue, 23 Feb 2010 19:30:00 EST. Please see our terms for use of feeds.
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Feb/100
Google’s Nexus One ‘equipment recovery fee’ slashed to $150, still a pain
So the good news here is that Google appears to have heard the cries for help, having taken a chainsaw to its brutal $350 “equipment recovery fee” that had been lumped on top of T-Mobile’s $200 ETF for subsidized Nexus One contracts canceled in the first 120 days. The bad news, though, is that it still exists at all — a hairy precedent for an industry being watched with eagle eyes by the FCC right now. The company has knocked $200 off the fee, bringing it down to $150; in other words, if you break your contract, you’ll pay the same ETF that Verizon now charges on its “advanced devices.” Whether that was a deliberate move to let ‘em say that they’re no more expensive than Verizon is unclear, but let’s be honest: $350 is extreme, $550 was highway robbery. At least we’re going in the right direction.
Google’s Nexus One ‘equipment recovery fee’ slashed to $150, still a pain originally appeared on Engadget on Mon, 08 Feb 2010 17:05:00 EST. Please see our terms for use of feeds.
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Jan/100
Verizon unveils new FiOS bundles with symmetrical 35Mbps pipes, heftier ETFs
As expected, Verizon is rolling out a new line of FiOS bundles for this perennially broadband-starved nation, and bumping up its early termination fees in the process. The traditional ETF for the installation-heavy service has been at $179, but now it’s rocketing to as high as $360 to break from these fur-lined shackles. The new bundles of course don’t skimp on the goodies, particularly with the 35Mbps up / 35Mbps down symmetrical service that should be a boon to HD video chats, big torrents and medium-sized torrents. For a limited time you can get into the “Prime” triple-play bundle (TV, internet, phone) for $90 a month, though that price will bump up to $110 a month after a year. Sweet enough to calm your fears about a $360 early cancellation penalty? Verizon sure seems to hope so — no matter what sort of condescending looks the FCC shoots its way.
Verizon unveils new FiOS bundles with symmetrical 35Mbps pipes, heftier ETFs originally appeared on Engadget on Mon, 18 Jan 2010 11:25:00 EST. Please see our terms for use of feeds.
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Jan/100
Google lowers Nexus One upgrade price to $279, issues $100 refund to early upgraders
Good news, earthlings! Apparently Google’s taken all the complaints about Nexus One upgrade pricing to heart, because it’s giving $100 rebates to current T-Mobile subscribers who paid $379 for the HTC-built handset — and it says it’ll be widening the net and offering upgrades to even more current T-Mo subs, although we still don’t know how that’s determined. That means the new Nexus One pricing tiers break down like this: $579 unlocked, $279 upgrade for (some) current T-Mo subs, and $179 on a new 2-year contract. Handshakes all around. Now, let’s fix up family plan activations and that crazy double ETF, shall we?
[Thanks to everyone who sent this in]
Google lowers Nexus One upgrade price to $279, issues $100 refund to early upgraders originally appeared on Engadget on Thu, 14 Jan 2010 21:57:00 EST. Please see our terms for use of feeds.
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Jan/100
Google imposes $350 early termination fee for subsidized Nexus One in addition to carrier’s own ETF
Here’s another reason to consider going the unlocked route with the Nexus One, in addition to having the AT&T (non-3G) and international GSM option. As a number of people have noticed, Google’s got its own Early Termination Fee (ETF) equivalent, here called the Equipment Recovery Fee, in the terms of sale, to the tune of $350 if you cancel within the first 120 days. Sound familiar? It’s because we saw it in a leak just before the new year. Here’s the kicker, though: this is in addition to any fees imposed by the carrier — not necessarily a problem on its own, but we just glanced at T-Mobile’s terms of sale, and sure enough, there’s an associated ETF up to $200. If we’re reading this right, Nexus One owners who decide to end their service after the 14-day trial period is over but before four months have passed will be hit with upwards of $550 in fees — more than if you bought the phone outright from the start, especially when you factor in the upfront $180. There hasn’t been enough time for someone to tempt fate, but who knows — come January 20th when early adopters’ trial period ends, there might be some interesting stories abound.
Google imposes $350 early termination fee for subsidized Nexus One in addition to carrier’s own ETF originally appeared on Engadget on Tue, 12 Jan 2010 07:21:00 EST. Please see our terms for use of feeds.
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Jan/100
Verizon to double ETFs on FiOS TV contracts
You might think that if only Verizon’s FiOS service was available in your area, then life would be nearly perfect. And although FiOS offers some of the fatest internet in the US as well as some of the highest quality HD and a fantastic selection, it isn’t all rosy over there. In fact the service has been riddled with billing issues since its launch in 2005 and in order to take advantage of some of the great promotional offers, you’re forced to sign a two year contract. Up until January 16th 2010, that ETF has been $179, and according to DSL Reports on the 17th, that fee is set to go up to $360. That’s not it though, as Verizon is expected to raise the price of services another $10 or $20 a month. You can of course avoid this by not signing a contract and going month to month, but of course this’ll only work out saving you money if you end up canceling, and really if you had fiber to your home do you really think you’d cancel? Us either. Regardless, if you were thinking of switching to FiOS or taking advantage of a new promotion, we wouldn’t waste any time getting it before the terms change next week. And as always be sure to read the fine print before signing anything.
Verizon to double ETFs on FiOS TV contracts originally appeared on Engadget on Tue, 12 Jan 2010 02:40:00 EST. Please see our terms for use of feeds.
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Jan/100
FCC chariman echoes commissioner’s sentiments, says Verizon’s ETF response ‘raised more questions than it answered’
FCC chairman and general ass-kicker Julius Genachowski is siding with his commissioner Mignon Clyburn this week, noting that Verizon’s response to the Fed over its $350 “advanced device” early termination fee didn’t really satisfy everyone’s curiosity. He’s not ready to talk about the FCC’s next move in the case — we’re guessing another lengthy open letter is in order — but he assured media on hand that “the bureau is looking into” the situation. In the meantime, just don’t get tired of that Droid too fast, alright?
FCC chariman echoes commissioner’s sentiments, says Verizon’s ETF response ‘raised more questions than it answered’ originally appeared on Engadget on Sat, 09 Jan 2010 02:03:00 EST. Please see our terms for use of feeds.
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Dec/090
FCC commish says Verizon’s ETF response is ‘unsatisfying and, in some cases, troubling’
A member of the FCC’s five-person commission, Mignon Clyburn, has sent out a letter today in response to Verizon’s earlier reply regarding questions surrounding its gargantuan $350 early termination fee on so-called “advanced devices,” and in brief, it looks like this issue is far from tied off. Her choicest quote is that she found Verizon’s answers “unsatisfying and, in some cases, troubling,” noting that customers are already paying “high” monthly fees and suggesting that the public interest isn’t being served when someone gets slammed with a three-digit cancellation charge mid-contract. She also straight-up calls the company out on its claim that customers aren’t being inadvertently charged when the press the web button on their phone without an appropriate plan, saying that “press reports and consumer complaints strongly suggest otherwise.” Commissioner Clyburn’s conclusion? “I look forward to exploring this issue in greater depth with my colleagues in the New Year.” Dum dum dummmmm. Follow the break for the full text of the letter.
[Thanks, Daniel P.]
FCC commish says Verizon’s ETF response is ‘unsatisfying and, in some cases, troubling’ originally appeared on Engadget on Wed, 23 Dec 2009 17:30:00 EST. Please see our terms for use of feeds.
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Dec/090
FCC extends deadline on Verizon’s ETF response, lets it enjoy the weekend
They’re not exactly calling off the hounds, but the FCC’s standing down just a wee bit in its hunt to get to the bottom of Verizon’s astronomical new $350 “advanced device” early termination fee; the original deadline for the carrier’s responses was yesterday, December 17, but instead, the FCC will now be checking its mailbox on Monday. Even in the most extreme outcome, it’d likely be months or years before the FCC would actually go from an inquiry to applying pressure on Verizon to lower the fee. In the meantime, though, failure to respond to the questionnaire will probably result in an entertaining series of strong verbal admonishments and — if Genachowski’s in a feisty mood — perhaps a flurry of punishing blows to Verizon’s torso and upper body.
FCC extends deadline on Verizon’s ETF response, lets it enjoy the weekend originally appeared on Engadget on Fri, 18 Dec 2009 09:23:00 EST. Please see our terms for use of feeds.
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Nov/090
Don’t shop drunk: Verizon’s $350 ETF is now live
Just a word of caution to anyone out there with an itchy credit card finger: signing up for a contract with Verizon just became a considerably more binding affair thanks to a big boost of its contract early termination fee from $175 to $350. Rumored for a few days now, the change became official as of yesterday, which means that anyone who bought an “advanced device” prior to the 14th is in the clear. The advanced device list can be found on Verizon’s site, and as you might expect, it’s a little broad and ridiculous — winners like the Versa, Exilim, and Glyde are on there, so they’re obviously not just referring to smartphones. They throw you a bone by reducing the ETF by a stout $10 for every month of the contract you successfully hurdle, but that still leaves you with a $120 ETF 23 months into a 24-month deal… so yeah, just be careful out there and don’t do anything rash, alright?
Filed under: Cellphones
Don’t shop drunk: Verizon’s $350 ETF is now live originally appeared on Engadget on Sun, 15 Nov 2009 14:44:00 EST. Please see our terms for use of feeds.
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Nov/090
Verizon looking to bump early termination fee to $350 on ‘advanced’ devices
You know what’s worse than showing your Bitter Beer Face to the world after you passed on Apple’s iPhone and let AT&T enjoy the spoils? Raising your early termination fee to stratospheric heights. Just over a year ago, we honestly though this whole ETF thing was headed in the right direction, as most of the major carriers (VZW included) sought to prorate contracts in order to lessen the charge as one’s contract drew closer to an end. Now, however, Big Red is evidently gearing up to pull a 180, with the slide above showing a $350 ETF for “advanced” devices (read: probably anything deemed a smartphone). The newly hiked rate will go into effect on November 15th, and while that $350 will decrease by $10 per month over the life of the agreement, this pretty much guarantees that you won’t be adding a line, disconnecting and then flipping that phone on eBay.
Filed under: Cellphones
Verizon looking to bump early termination fee to $350 on ‘advanced’ devices originally appeared on Engadget on Wed, 04 Nov 2009 08:42:00 EST. Please see our terms for use of feeds.
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Sep/090
Sprint’s Dan Hesse talks Android, Pre, iPhone, 4G on Charlie Rose
Sprint CEO Dan Hesse recently sat down for an interview with the master of one-on-ones and black backdrops, Charlie Rose, and while much of the talk was spent traveling down memory lane and revisiting Hesse’s two-decade rise through the ranks at AT&T before fleeing in 2000, there were some great quotes that came out of it:
- “We’re getting ready to launch a couple of new Android devices.” We know one’s the Hero, and the other — if we were the betting types — is the Samsung InstinctQ.
- Rose: “The merger with Nextel was a bad idea?” Hesse: “In 20 / 20 hindsight, it was, yes… the premium that Sprint paid for Nextel was too much.” Sprint’s gone back and forth on the idea of spinning off Nextel over the past couple years, so it’s not a surprising thing for him to think — but to hear Sprint’s CEO actually say out loud that he thinks a very active part of its network shouldn’t have become part of the company is a little bombastic.
- “Our prepaid brand is Boost.” Nothing wild and crazy about that statement, though it does reaffirm that Virgin Mobile is destined for assimilation. The whole thing’s kinda funny considering that Boost dabbled in CDMA before reversing course, and once again, Sprint will be dealing with large installed bases of both iDEN and CDMA prepaid customers.
- On touchscreen smartphones: “Those are the most expensive phones for us to sell, and those are the ones where we need to make sure that the customer stays with us [and] doesn’t churn, because we’re out a lot of money… those are expensive devices.” Theoretically, an aggressively-priced subsidized smartphone could still end up leaving a carrier in the red if you broke your contract early on and paid the ETF, but we doubt that’s a huge problem — especially for a CDMA carrier like Sprint. He goes on to say “I’m already looking at 4G versions of smartphones,” so that’s really encouraging to hear, particularly if you’re into WiMAX.
- “Customers will pay premium for simplicity. Simplicity is everything… Digital One Rate which we launched back at AT&T, that was all about simplicity… people paid more. It wasn’t a price cut.” Translation: “Unlimited makes you feel like you’re getting a deal, but rest assured, we’re banking.”
- In response to Rose asking how Sprint uses the Palm Pre to take on Apple and RIM: “It was really kind of Palm’s decision to take on Apple. And Palm has had [a] long standing relationship with Sprint.” It’s interesting to hear Hesse seemingly back away from a fight with Apple and chalk up the situation to happenstance — RIM not as much, considering that Sprint carries a number of BlackBerrys in its lineup and will certainly continue to do so. Talking more about pitting the Pre against the iPhone, he goes on to say that Palm’s handset is “doing well. But you’ve got to almost put the iPhone, to be fair, in a separate category. The Apple brand and that device has done so well. It’s like comparing someone to Michael Jordan.” If that’s not a tactful acknowledgment that the iPhone is a bona fide wireless superstar, we don’t know what is. Hesse’s giving the iPhone the respect it’s rightfully earned — as any strategically-minded executive would.
- “The biggest impediment to mobile growth is you got processors are getting a lot faster, screens are getting sharper, they use more and more power, and battery technology is not moving very fast… That’s the one breakthrough that the industry needs. It needs battery breakthroughs.” It’s good to hear that Hesse understands as well as everyone else that the wireless industry needs to be focused on making power draw a non-issue, but he sounds less convinced of the solution: “I don’t know. Solar we hope, and renewable energy sources.” When Sprint gets some cash socked away, it might consider throwing some R&D money at the problem — it’ll be first to market with something resembling a “national” 4G network, after all, and the situation’s only going to get worse.
Who knew you’d find out so much about the inner workings of the States’ third-largest carrier from watching PBS? [Via Gizmodo]
Filed under: Cellphones, Handhelds
Sprint’s Dan Hesse talks Android, Pre, iPhone, 4G on Charlie Rose originally appeared on Engadget on Fri, 11 Sep 2009 20:44:00 EST. Please see our terms for use of feeds.
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