Verizon has responded to a recent FCC probe into the carrier’s doubling of its early termination fees. The company said that the new fees are necessary in order to help keep the prices of handsets low.
“This pricing structure enables Verizon Wireless to offer wireless devices at a substantial discount from their full retail price,” Verizon told the FCC. “By reducing up-front costs to consumers, this pricing lowers the barriers to consumers to obtaining mobile broadband devices. It thus enables many more consumers, including those of more limited means, access to a range of exciting, state-of-the-art broadband services and capabilities.”
The carrier added that the price covers the cost of the handsets, marketing, and support costs. The new $350 fee has lead to recently proposed Senate legislation curbing the price of cancellation charges.
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