An FCC Commissioner
upbraided Verizon Wireless last week for its response to the agency's inquiry about the carrier's early
termination fees.
Mignon Clyburn, one of five members of the Federal Communications Commission, called Verizon's answers "unsatisfying, and, in some cases, troubling" in a sharply worded
statement released by the FCC on Dec. 23. Clyburn said she was especially concerned about "what appears to be a shifting and tenuous rationale for ETFs."
In explaining the recent doubling of
early termination fees for smartphones and other "advanced devices" to $350, Verizon said in its Dec. 18 reply to the FCC that the ETF covered not just the cost of the phone itself, but related
marketing and operational costs.
But Clyburn clearly wasn't buying that argument. "No longer is the claim that ETFs are tied solely to the true cost of the wireless device; rather, they are now
also used to foot the bill for 'advertising costs, commissions for sales personnel, and store costs.' Consumers already pay high monthly fees for voice and data designed to cover the costs of doing
business," read her statement.
Verizon had confirmed in its response that smartphone subscribers terminating service in the 23rd month of a two-year contract would still have to pay $120 in
remaining early termination fees. "So when they are assessed excessive penalties, especially when they are near the end of their contract term, it is hard for me to believe that the public interest is
being well served," wrote Clyburn.
The FCC commissioner also expressed alarm at the $1.99 data fees that customers complain Verizon charges when someone inadvertently presses a key on their
handsets that launches the carrier's mobile Internet service. "The company asserted in its response to the Bureau that it 'does not charge users when the browser is launched,' but recent press reports
and consumer complaints strongly suggest otherwise," chided Clyburn.
A Verizon Wireless spokesperson said last week that the company is taking a hard look at Clyburn's concerns and will address
them in an appropriate manner.
No other FCC commissioners have yet responded publicly to Verizon's letter on early termination fees.