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Verizon Wireless to Cut Early Termination Fees

Verizon Wireless to Cut Early Termination Fees
By LongDistanceUS.com on Thursday, June 29 2006

Verizon Wireless plans to cut the early termination fees customers have to pay if they break their contracts. CEO Denny Strigl told attendees at the annual Yankee Group conference this week that Verizon plans to prorate the fee it charges to those subscribers so they only have to pay an amount proportional to the time left on their agreements. The change in policy will happen this fall, and the timing is interesting--when Verizon Wireless' churn rates are some of the best they have ever been. Verizon Wireless must now feel confident that folks aren't going to leave in droves. But there's another important reason. The operator wants to enable existing customers who upgrade to new phones to take advantage of the same deals new customers get. With operators getting more aggressive about pushing new services, it's only natural to let existing customers take advantage of them without being penalized.


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