FCC Grills Verizon On High Fees

NEW YORK — The Federal Communications Commission on Friday asked Verizon Wireless why it recently doubled the fees it charges customers when they break their contracts on "smart" phones.

In November, the carrier hiked the maximum early contract termination fee for smart phones to $350 from $175. Like other carriers, Verizon subsidizes the cost of the devices for contract-signing customers, then expects to make that money back in service fees over the term of the contract.

"Smart phones quickly became a major part of our business and cost us a whole lot more," Verizon spokesman Jeffrey Nelson said.

The FCC's letter to Verizon asks how consumers will know whether the increased fee applies to their phone, and whether it's spelled out anywhere except in the formal customer agreement.

The FCC is also asking the carrier about $1.99 data access fees that have appeared on the bills of customers who don't have data plans but accidentally initiate data access by hitting a button on their phones. Verizon says that as of a few months ago, it doesn't charge when a customer starts a data service then quickly turns it off.

The Plain Dealer in Cleveland tapped into a vein of frustration among Verizon customers in columns on the issue in August.

Comments

[ran6110]

I'm one of the lucky ones...

I haven't needed a cell phone in years and with a good internet connection skype does everything I want.

I do use MyFi from sprint for laptop data...

[janeycat]

There is a kinda local service in my area called Cricket . You can get a camera phone and unlimited, calls in and out, voice mail, long distance, texting, and no roaming you just don't have service out of their service area. All most people will need and it costs a flat fee of around 45.00 to 50.00 a month and their service area is growing every year or so. It is very good for kids and most adults too. Just about every body i know has it. I don't use a cell phone because I'm hardly ever out of the house and when i am I'm with someone that has one. I had Verizon home phone service when i lived in NC because it was a choice of them one one other service. It offered what i needed so i went with them. I never had any problems and even bought a cordless with 2 handsets paying 11.00 a month on my bill and that has been 4 years ago. I moved back home to TN and now have the same thing along with cable and internet and still have no problems. I guess i have been one of the lucky ones to have everything with Verizon to go OK.

[LemonMeringue]

T-Mobile is the least awful of the cell phone companies, politically. AT&T, Sprint and Verizon are all happy to spy on you for the Bush administration.

Credo is up there too, working hard for progressive causes and giving 1% of proceeds to established liberal groups. I am going to switch to them as soon as I can, though I've been happy with T-Mobile.

[SwingingFromCenter]

Yet another reason why I've stayed with T-Mobile for about 8 years now.

[BryanTheRegOps]

And thats the reason you'll never see me on Verizon ever again. I'll stick with my AT&T GSM service happily.

[LemonMeringue]

OMG you do know that AT&T is the worst when it comes to indulging the Bush administration who wanted to spy on you?

[mountainweb]

Verizon is in trouble, only reason a company starts screwing its customers! If you are a customer, start looking for a lifeboat.....

[Skygazer]

Verizon is brazen in its con artistry and pure customer screwing-greed. There's no other name for it. G-R-E-E-D. Their business model has involved hidden charges since at least the mid-90s when I noticed that everytime I checked my "unlimited voicemail' box I was charged for the call, to check it. I did some quick math and realized that a dime here and nickel there multiplied by millions of users is a fortune they've made on these lame schemes. really a even a penny extra for this company turns into fabulous profit when you think about the number of users they have.

But this 1.99 data scheme is the worst, I would love to see the figures on that one. Interesting that Verizon wanted deregulation, but continues to act like a monopoly, except now they think they also have a right to owning the internet and TV and the cell phone market..

I'm forced to use this company for a landline, but I refuse to ever get within their grasp for anything else and as soon as there's a better alternative I will drop the land line service.

Hey Verizon, Can you hear me now?

[mikie44]

I have been paying Verizon a monthly fee for their so called service for more than 5 years. I can not make a phone call from inside of my home. I'm not one of those with a "smart phone", what ever that is? All I want is to make a *ucking phone call and dream of the day when I may do so without going outside.

[PAposter]

I had the same problem...and stupidly upgraded with them, only to experience the same problems...I'm really thinking about suing them for lack of service...this is bullsh!t!

[SwingingFromCenter]

Perhaps you should have checked the coverage area?

I typically don't back cell phone companies, but in this instance it's on you. The contract clearly states you aren't guaranteed service, even if you're standing underneath one of their towers.

[rich24h]

you sound like the typical right wing business can do whatever because it`s business
apologist i promise you that their so called contract did not have that piece of info.
in bold letters but buried in the ultra fine print. ps. should`nt that be the foundation of their
service you will be able to make a call from your own home in the state you live in thats why we are here????

[PAposter]

I am so ready to terminate my Verizon account....any recommendations?

They really need to ask why so many people want to terminate early?

[LemonMeringue]

I've been happy with T-Mobile (switched from Verizon years ago for political reasons) for 4 years.

But check out Credo, as in Credo Action, which donates 1% to liberal causes, is active in liberal causes, and will buy out your old contract.

[earlyautumn]

When it was revealed that Verizon was giving away our private info to the Federal Government, I dropped the Verizon service -- before the contract had expired.

I refused to pay the fine -- two phones -- $350.00. I had at least fifty threatening calls. I told them to go ahead and mess up my credit rating, because it was near perfect. They did, and since that ding on my credit rating, the question has only come up once, in a refi of my home, and it has not created a problem.

Everyone should quit Verizon's service. They are a company which will bribe any member of congress to get their special treatment. They and ATT are horrible companies. The FCC should put them out of business. They don't give a damn about the public's needs.

[windup]

DUMP Verizon. Use the working assets service. They are a progressive organization and up until now their service has been great. I will admit though, they are getting large, and large means not as good as before. But here it is www.credomobile.com.
You will always talk to a nice service rep right here in the states, and you won't get a long menu and musak. I must admit, I just got a great phone that was supposed to have 3 months free trial web access, and they started off charging me. So I called and got it off the bill, and put a block on all web access on all 4 of our phones so the key won't be accidently pressed.

[m2cran]

I'm paying an extra $10/mo just for text messaging. That's as much as one phone line charge which uses much more service....

[jcd8822]

I had a charge today on my AT&T bill for both phones for data access and we do not use any of that at all. Then I noticed the charges for Voice data. I had no idea what that was and I was charged for a 800 service which I do not have. It only took 2 hours to get that straightened out with the Village Idiots in India. I am about ready to invest in stamps and envelopes again and forget these wonderful phones. Of course I would then be back to where I was years ago when mail disappeared off the face of the earth. LOL

[Igglesfan]

Verizon continuously added the $1.99 charges and said they would reverse them and they didn't. I told them I would not pay them and they disconnected my phones immediately. When I called back they charged me $15/phone ($45) to reconnect 5 minutes later and refused to credit the $45. I have to wait until July to terminate the contract because the current $175 earllt term fee is only prorated at $5 month. Not bad for a company that gives out information freely to the government.

[dieselis]

Verizon charges for airtime and minutes on some of their prepaid phones. If your run out of airtime you lose your minutes.