It just got more expensive to leave your contract before Verizon wants you to

By Williams Pelegrin Published November 17, 2014

verizon edge upgrade early news wireless — Image used with permission by copyright holder

Up until now, when you signed up for a two-year contract with Verizon, your early termination charge of $350 would be reduced by $10 for every month you had fulfilled of your contractual obligation. Unfortunately for new customers, Verizon changed its terms to eliminate the cost reductions until your eighth month under contract.

The change, for customers who sign up for a new contract, would maintain that $350 fee for seven months straight. In the 8th month, the reduction will finally kick in, but you only subtract $10 each month until you reach the 18th month. Then, from the 19th through the 23rd month, that reduction will double to $20 a month. Finally, the last month will net you a $60 reduction.

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It’ll be interesting to see how T-Mobile, AT&T, and Sprint will react to the change, but it’s obvious Verizon found a way to better monetize its ETF system. In addition, with the new policy, Verizon can make its money back from subsidized handsets at a faster pace than before. Even so, considering that Verizon lost customers earlier this year, this seems like a brazen move on Big Red’s part.

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Williams Pelegrin

Former Digital Trends Contributor

Williams is an avid New York Yankees fan, speaks Spanish, resides in Colorado, and has an affinity for Frosted Flakes. Send…

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