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Thread: Administrative Fee Increases Coming

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    Administrative Fee Increases Coming

    https://www.lightreading.com/5g/more.../d/d-id/777597


    As for Verizon's price increase, Bloomberg reported the operator plans to increase prices for both consumers and business users. Specifically, the publication reported that consumers will see a $1.35 increase in administrative charges for each voice line starting in June, while business customers will see a new "economic adjustment charge" beginning in June that will raise data plans by $2.20 per month and basic service plans by around $1 per month.

    Verizon officials blamed the company's new price increases on inflation. "We're all feeling the pressure and we've been in the process of deciding how much of that pressure we can share with our clients," Erwin told Bloomberg.


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    “The Internet wasn’t meant to be metered in bits and bytes, so it’s insane that wireless companies are still making you buy it this way. The rate plan is dead — it’s a fossil from a time when wireless was metered by every call or text.” John Legere 1/5/2017

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    They're already the highest price for the least features. If I didn't have $735 left to pay on 2 phones we'd be switching to Spectrum Mobile already. And that was before this announcement

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    and.......?

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    Quote Originally Posted by Jack Hagar View Post
    They're already the highest price for the least features. If I didn't have $735 left to pay on 2 phones we'd be switching to Spectrum Mobile already. And that was before this announcement
    Once you get your devices paid off you can at lest get the $29.99 deal for multiple lines. Existing Spectrum Mobile customers can not get the deal unless they leave and come back 60 days later.

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    Quote Originally Posted by @TheRealDanny View Post
    https://www.lightreading.com/5g/more.../d/d-id/777597


    As for Verizon's price increase, Bloomberg reported the operator plans to increase prices for both consumers and business users. Specifically, the publication reported that consumers will see a $1.35 increase in administrative charges for each voice line starting in June, while business customers will see a new "economic adjustment charge" beginning in June that will raise data plans by $2.20 per month and basic service plans by around $1 per month.

    Verizon officials blamed the company's new price increases on inflation. "We're all feeling the pressure and we've been in the process of deciding how much of that pressure we can share with our clients," Erwin told Bloomberg.


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    Does this get you out of phone payments like it used to get you out of contracts???

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    Quote Originally Posted by dentite View Post
    Does this get you out of phone payments like it used to get you out of contracts???
    Yes you can get your $1000 phone for free now because of $1.35 month. /sarcasm

    I hope this wasn't a serious question. What does a device payment have to do with your phone bill?

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    Administrative Fee Increases Coming

    This is one reason the carriers got rid of contracts. If there is a signed contract, both parties have to adhere to it, meaning no arbitrary rate increases during the contract period without cancelling the contract.

    With device payment plans, it’s just 0% financing, meaning you owe it even if you cancel service, and usually owe it in full if you do cancel which can be hundreds or even thousands of dollars depending on number of devices and lines. With contracts, it was a flat rate ETF that decreased every month. Simple.

    I’ve always maintained that as much as everyone hated contracts, it wasn’t the worst arrangement as you knew the rates wouldn’t increase for no reason, at least until the 2 years were up. With the new systems, the carriers can come out tomorrow and tell us that due to inflation, the rates have now doubled and to have a nice day, and there’s nothing anyone could do about it.


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    Quote Originally Posted by clonehappy View Post
    I’ve always maintained that as much as everyone hated contracts, it wasn’t the worst arrangement as you knew the rates wouldn’t increase for no reason, at least until the 2 years were up. With the new systems, the carriers can come out tomorrow and tell us that due to inflation, the rates have now doubled and to have a nice day, and there’s nothing anyone could do about it.


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    I bemoaned the end of contracts in cellular. Unpopular opinion, but pragmatically speaking, carriers have simply replaced them with a system that's less consumer-friendly and gave it a less unpopular name.

    Under a traditional 2 year contract, you either had a flat $160 or prorated $250 ETF and got a subsidized phone. If you walked earlier, you just paid the ETF and kept the phone.

    Now, carriers are locking people into 30-36 month payment plans. Sure, you can leave anytime, but technically you could just pay the ETF to leave the legacy contracts too. But now, the effective cost to break that payment plan "contract" is much higher. Instead, you still have to pay off the entire balance of the phone and forfeit any bill credits that made the payment plan attractive in the first place.

    Contracts weren't great, but they were better for the consumer than what we have now.


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    Quote Originally Posted by blkballoon925 View Post
    Sure, you can leave anytime, but technically you could just pay the ETF to leave the legacy contracts too. But now, the effective cost to break that payment plan "contract" is much higher. Instead, you still have to pay off the entire balance of the phone and forfeit any bill credits that made the payment plan attractive in the first place.
    Now that is just silly, why would the carrier pay the user any unrealized bill credits on a phone after canceling their service? The user keeps the phone, the carrier won't take it back. I do hope you were kidding and not serious.
    Just another day in paradise.....

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    Quote Originally Posted by Serial Port View Post
    Now that is just silly, why would the carrier pay the user any unrealized bill credits on a phone after canceling their service? The user keeps the phone, the carrier won't take it back. I do hope you were kidding and not serious.
    But the bottom line is still that the old ETF was less than the current payoff in most cases. They have a high retail price that is to be repaid over 36 months, and then give monthly bill credits to reduce the effective price of the phone if you stay with them over the entire 36 months. But if you leave early, your payoff is based on the artificially high retail price. For example, if you are 18 months into the plan, and you want out, you have to pay 1/2 of the full retail price. But if you stay, the credits substantially reduce what you end up paying over the next 18 months. The sum of the forfeited monthly credits is effectively the ETF under the old contract plan.

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    Not all device payment plans last 30-36 months. Just a way to spread out the cost by reducing the monthly payment for the user without charging any interest. I know that 24 month payment plans still exist with the major carriers. Only a few models (typically the highest end phones) have a longer PP. The PP clearly stipulates these terms & conditions when users purchase a new phone, there is nothing hidden. If you want to avoid this, you can purchase the phone outright and there is no commitment involved.

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    Yes, there is nothing hidden, one just has to do the math. I just got an iPhone 12 with a list price of $699.99 on a 36 month plan, which is $19.59/mo. They gave me a $9.80/mo Device Promotional Credit plus a $3.05/mo ($100) Trade-in Credit on an iPhone 7. Right now, if I pay it off in full, I will pay $699.99. If I pay it off over 36 months, I will pay $236. That's a pretty steep ETF ($464). From how I read the contract, the only way to collect the $100 trade-in credit is as part of the payment plan. I think the promotional credit was some kind of loyalty discount for being a long time customer (since 1994, starting with Verizon predecessor GTE MobileNet). I did not have to ask for it; the CSR at the Verizon store dug it up on his own.

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    Quote Originally Posted by Serial Port View Post
    Not all device payment plans last 30-36 months. Just a way to spread out the cost by reducing the monthly payment for the user without charging any interest. I know that 24 month payment plans still exist with the major carriers. Only a few models (typically the highest end phones) have a longer PP. The PP clearly stipulates these terms & conditions when users purchase a new phone, there is nothing hidden. If you want to avoid this, you can purchase the phone outright and there is no commitment involved.
    Serial Port if the 24 month device financing option still exists the option is not being offered online.

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    Quote Originally Posted by Jack Hagar View Post
    Yes you can get your $1000 phone for free now because of $1.35 month. /sarcasm

    I hope this wasn't a serious question. What does a device payment have to do with your phone bill?
    I was being sarcastic. Contract weren’t that bad and they certainly weren’t 36 months long. They offered upgrades without having to pay off a device.

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