FCC Asks Verizon Wireless to Explain

The Federal Communications Commission on Friday asked Verizon Wireless why it recently doubled the fees it charges customers when they break their contracts on smart phones.

In November, the carrier hiked the maximum early contract termination fee for smart phones to $350 from $175. Like other carriers, Verizon subsidizes the cost of the devices for contract-signing customers, then expects to make that money back in service fees over the term of the contract.

Source: http://www.notepage.net/blog.htm#1028

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