Verizon ETF Warning

By Karl Denninger, The Market Ticker

If you have an “advanced device” on Verizon (or want one) be aware that there are rumblings of SERIOUS increases in ETFs should you be unhappy (or just run out of money and need to cancel.)

It appears that Verizon (from a little birdie that just tweeted in my ear) is increasing their ETF on these devices some time in the next two weeks to $350 (from $175) with a $10/month decline (from a $5/month decline) for “advanced devices” (e.g. Blackberries, Netbooks, etc) for all new contract signers or re-signers.

This is a rather curious change given that T-Mobile has effectively gotten rid of subsidies with their “Even More+” plan, and even better, has quantified the subsidy value to the customer ($10/month difference between subsidized and non-subsidized.)

This wasn’t quite the reaction I expected from T-Mobile’s announcement…… we’ll see whether arrogance is an appropriate business model in this economic environment, and whether AT&T attempts to follow Verizon’s lead.

Best guess as to intent: This is an attempt to prevent people from arbitrage’ing the ETF and some devices (e.g. the Blackberry Storm.)

I wish you luck Verizon.

Disclosure: No position.

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