This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Verizon Abuses Customers With Higher New Phone Fee: Today's Outrage

NEW YORK (TheStreet) -- Verizon (VZ) is out of touch with reality. What absolute gall to double early termination fees to $350, according to a report on Yahoo! (YHOO).

Verizon is totally out of sync with the market, with so many new and exciting mobile phone products coming out all the time.

Doubling the termination fee is not in keeping with the new regulatory push to stop companies from gouging consumers with unnecessary fees.

We're basically talking about a new twist on the old bait and switch routine, let's call it bait and lock. Verizon captures new customers by offering them subsidized deals on cool new phones and then wants to recoup the cost by locking them in with long-term contracts.

Most Commented
Sirius XM Tops Targets
Most Popular
Citi Shares Hamstrung

I understand the business logic behind that strategy, and I appreciate the opportunity to get a better deal on a phone. But two years is an eternity in the fast-moving mobile technology environment we live in.

Verizon and many of its rivals made the decision to compete on phone technology by starting down the path of subsidized phones and exclusive deals with mobile technology companies.

AT&T (T) made its bet on Apple (AAPL)'s iPhone (or maybe it was the other way around), Verizon is going big on Google (GOOG)'s Android and Sprint (S) hooked up with Palm (PALM).

So if they want to compete on phones, then they should be making it easier and cheaper for customers to upgrade to the latest, greatest version.

Stock quotes in this article: VZ, T, AAPL, GOOG, PALM, S 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs