Who ever said it was easy being one of the key players in the mobile industry? Verizon finds itself once again under scrutiny, this time from the Federal Communications Commission who wants answers as to why Verizon recently doubled the fees it charges customers who want to break their contracts on smartphones.
Just last month Verizon doubled its maximum early termination fee for smartphones from $175 to $350 and justified it by saying the early termination fees to help recoup the costs of discounted handsets to subscribers.
The FCC is investigating whether or not these fees simply help them hold on to consumers who loath paying extra to get out of a contract early.
Just last week four US senators introduced a bill that could potentially pro-rate early termination fees based on time remaining on a contract and would cap fees based on the handset’s actual price.
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