Verizon Wireless defends their steep early termination fee

Verizon Wireless defends their steep early termination fee

Verizon Wireless has responded to the inquiry made by the FCC by sending them a detailed reply.

The company recently hiked the early termination fee to USD 350 for advanced devices.

Verizon said that they are still bound to lose money even with this high price. The company defended this price saying that this helps them counter heavy loses from customers who break contracts on subsidized smartphones.

Verizon further claims that the high fee would enable them to keep investing in the maintenance of their network which has become very important with the high data usage by the owners of these advanced smartphones.

The company apparently wants to convey that unlike AT&T they have managed to perform well with their 3G services and they do not want to end up making huge losses on customers who buy heavily subsidized smartphones and then break contracts.