Verizon Early Termination Fees Doubling!?

Ever felt that you were held prisoner by your cell phone carrier and their cancellation fees?  As of November 15, 2009, customers that sign a contract with Verizon wireless need to ask questions and read the fine print.  It was released that Verizon will be charging twice the amount for their early termination fee (or ETF).  As of now, the ETF is $175 for Verizon and it looks like this will soon jump to $350!?  Wow.  Wasn’t it not too long ago that rumors were being spread that some of the wireless dealers were going to lower or eliminate these fees?  Talk about being locked down!

Here is a quick breakdown of the early termination fees (ETF’s) by national U.S. carrier:

Verizon $175

* Fee decreases by $5 for each month of service

AT&T $175

* Fee decreases by $5 for each month of service

T-Mobile $200

* Drops to $100 with between 3-6 months remaining and $50 with 3 or less months of service left in the contract

Sprint $200

* Fee decreases by $10 for each month of service after the first 4 months, down to a minimum ETF of $50

It has also been rumored that this higher ETF will apply to only certain phones but this is still unclear.  Also, Verizon and other major carriers prorate your ETF depending on how long you have been with them as mentioned above.  For example, if you signed a two year contract and only have 5 months remaining, your ETF will be reduced.

Lastly, other sources have stated that this increased ETF fee may not just happen with Verizon wireless, but others as well.  If this happens, I wonder how many wireless customers will choose a prepaid or no contract service instead.  As Bob Marley said, time will tell.

What are your thoughts on this?  Should these carriers be able to lock a customer in and charge this much?