An accretion in ETF by Verizon has the government buzzing about the company’s objective for its actions. Previously, Verizon’s ETFs, early-termination fee applied to a contract that is no longer desired, were $175. Now, Verizon decided to double the fee, transforming $175 ETF to a $350 one. Senator Amy Klobuchar decided to enforce legislation to restrict wireless carriers of the option of raising penalty fees to such a high price. Her reasoning behind the decision rests in the “anti-consumer” and “anti-competitive” sentiment of increasing the cancellation rates. Wireless carriers felt that Klobuchar’s disparaging was an acceptable notion. They believe that the fee assessed should vary with the number of months a user spent with the cell phone. Consumers see Verizon’s move as a method of containing their customer’s handset consumption, halting them from moving from phone to phone due to the mammoth fee required. Verizon’s input? The carrier explains that its increase in ETF is due to the rising cost of discounting new “advanced devices” and netbooks. Also added was a sting in the face to financial acceptability with the suggestion of purchasing a phone without a contract. This, of course, is out of the spectrum of reasonable prices. But, in a free market system, is this legislation legal? I’d consider it eligible for change given that multiple companies impose a similar fee for ETF. But, for now, I believe Verizon has the right to increase such a fee, given that consumers have the opportunity to switch to another one of the mobile carriers in the States. Anyway, keep your eyes out for what’s next to come. Our free market system is at risk! Read it.

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