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Verizon Gets Until Monday to Explain $350 ETF to FCC

Verizon Communications Inc. (VZ) has until Monday to explain its high “advanced devices” early termination fees (ETFs) to the FCC.

The nation’s largest wireless carrier recently hiked the ETFs on netbooks and smartphones to $350 from $175. That raised eyebrows at the FCC. Verizon was to have responded to the FCC’s request for an explanation by Dec. 17; however, the company asked for, and received, an extension to Dec. 21.

Verizon is expected to explain why it doubled the ETFs on high-end products and how it charges for access to the mobile Web. Some customers have complained of $1.99 charges, even though they didn’t mean to click into the Internet and turned it off as soon as they realized what they’d done.

Meanwhile, Verizon has in the past defended its ETF policy, which is meant in part to keep users from getting a subsidized device, then canceling service and selling the handset at a profit.


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