Verizon Trys To Convince The Government A $350 Cancellation Fee Is Fair

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Verizon Wireless has a new $350 cancellation fee associated with certain cell phone plans, which is drawing fire from the FCC the WSJ reports.

Verizon says it needs the money to subsidise phones, and to invest in its high speed network.

The wireless giant offered up a defence of its new fee—double the fee charged to other subscribers—in response to an inquiry by the Federal Communications Commission.

“The higher (early termination fee) associated with Advanced Devices reflects the higher costs associated with offering those devices to consumers at attractive prices, the costs and risks of investing in the broadband network to support these devices, and other costs and risks,” Verizon wrote in a letter Friday to the FCC.

…Wireless carriers argue that they need to charge the fees to help recoup the cost of offering free or low-cost handsets to consumers. Consumers can buy phones at full price and subscribe to wireless services on no-contract plans, the industry says.

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