Breaking a Contract On Verizon After Nov. 15th, Could Cost You $350.00. Read if this will effect you.

Verizon Wireless has decided to increases its ETF (Early Termination Fee) for premium devices such as BlackBerry, the new Droid, and other such devices starting Nov 15th. So how much will it go up for Verizon customers? Verizon customers will see a jump from $175 to $350 smackers, but they will reduce the ETF by $10.00 for every month you are on the service agreement. Who will this changed effect?

This increase will apply for new activations and upgrades, and will be non-negotiable. So making a fuss about how long you’ve been a customer is NOT going to get you excluded.  

Now according to Phone Scoop,  Jeffrey Nelson over at Verizon said the following about the change:

 ”We are raising the ETF for contracts associated with the purchase of an advanced device (i.e., smartphones, PDAs, netbooks) at a reduced price. This change only applies to new contracts beginning Nov. 15, and only when the customer ends service before the term is up. The ETF will be $350 and will decline by $10 a month. Our ETF for all other devices remains at $175.”

Verizon put a good spin the reason for the ETF fee change, but I think there is more to the story. Lately with all the unlimited pre-pay carriers popping up,  some customers have decided to break their ties with the Big 4. These carriers offer no contracts and buckets of minutes, but their phone selection leaves something to be desired. 

What does this have to do with Verizon and the new ETF fee? Well, some customers would go to Verizon and buy the phone they like, then call in, cancel service, and eat the $175 cancellation fee. They would then take the phone over to one of the prepay carriers and activate it there. This was costing Verizon a ton of money on handset costs, especially on high end phones. So with a new lineup of phones coming, Verizon is covering its bases to ensure that it hurts you more than it hurts them to take the phone and run.

Sound off:  What do you think about Verizon and its new ETF policy?