Verizon increases SMS rates -- customers now free of their contracts
It looks like Verizon Wireless is following in Sprint's SMS footsteps, announcing a planned hike in text messaging rates for those not currently subscribed to a messaging package. The hike, which will take effect March 1st, will bump the cost of sending a text message to the U.S., Puerto Rico, Canada and Mexico from $0.10 to $0.15 per message, with the price for international text messages remaining at $0.25 per message. The cost of receiving a message from customers of foreign wireless carriers, however, will increase to $0.15 whether you subscribe to a messaging package or not. If this all sounds a little familiar, it's because when Sprint did the same thing late last year, it didn't take long for people to figure out that the rate hikes amounted to a so-called "material change" to their contracts, meaning they could bail on it without paying an Early Termination Fee (EFT). So if you've been sticking to Verizon but secretly fancying another carrier, this looks like it may be your only chance to take the plunge without also taking a hit. In related news, Sprint looks to be planning a price hike of another sort, with a pair of tipsters relaying the news to us that the cost for Sprint's directory assistance service will be going up from $1.49 to $1.79 on February 1st, although whether that's enough to constitute a material change to the contract or not remains to be seen.[Thanks, Max, Tina, and Jonathan]
Filed under: Messaging, Verizon Wireless
Reader Comments (Page 1 of 2)
elgee02 @ Jan 12th 2007 4:00PM
When Cingular did this recently, did they allow people to leave them without paying the ETF?
Jon Gales @ Jan 12th 2007 4:17PM
No Cingular did not allow customers to dip out without paying a ETF. There was some confusion right after the announcement, but the official stance was that text messaging is a "non-essential" service and doesn't apply as a "material change". Obviously a lot of customers disagreed. The vast majority probably just wanted to skip out on their contracts early--I doubt any real text user would be stuck paying $.10 a pop anyway.
elgee02 @ Jan 12th 2007 4:31PM
I'm not sure how wise it is for Engadgemt Mobile to be reporting that customers can for sure ditch their contracts with VZW becuase of this SMS increase. VZW themselves says nothing about getting out of your contract without an ETF www.verizonwireless.com/information
OGHowie @ Jan 12th 2007 4:32PM
So is it confirmed that I can leave without the ETF or not? I have 2 lines on our company account I need to get rid of.
Andrew Ng @ Jan 12th 2007 4:33PM
Perfect, no ETF means one fewer barrier for us to switch to Cingular for the iPhone... I wonder though, for those of us who have text plans, if this would still apply as a material charge. Anyone?
David @ Jan 12th 2007 4:47PM
Any info for people who already have a texting plan? Sprint people, any stories?
Andrew Ng @ Jan 12th 2007 4:50PM
obviously I meant to type "material change" in my above comment... :)
Jon @ Jan 12th 2007 5:06PM
GARBAGE... any company who changes it's contract terms, regardless of what service it is... can not bind you to that contract. In other words, it's an irrelevant document even if Jesus J. Christ signs it. I'll do what I do best, cause my fiance desperately needs out of her Verizon contract. I'm gonna ask about her friends in Puerto Rico... She's can't receive txts from them anymore cause it's too damn expensive....
:)
OGHowie @ Jan 12th 2007 5:26PM
Would a "material change" only apply if I currently have a texting plan or even if I only pay per text message?
Jon Gales @ Jan 12th 2007 5:31PM
I did a bit of research and it's pretty clear that you can NOT cancel your account without paying an ETF because of this. The contract makes that fairly clear. The pull quote:
"YOU CAN END THE AFFECTED SERVICE, WITHOUT ANY EARLY TERMINATION FEE"
What Verizon Wireless is offering to do is cancel text messaging. Without a fee! What fun.
I compiled the legalese about price changing from all the national carriers. We're at their mercy.
http://www.mobiletracker.net/archives/2007/01/12/verizon-wireless-sms-price
elgee02 @ Jan 12th 2007 5:44PM
According to VZW if you have a text bundle, the per-text rate if you go over your allotted texts will still only be 10 cents per text, no change there, thefore no justifaction to leave without ETF.
Calvin @ Jan 12th 2007 6:07PM
The way I read it, it seems as though if you already have a messaging plan then your rates will not be affected (grandfathered, so to speak)... in that case you wouldn't be able to jumo ship. I find it hard to believe a company like Verizon would drop their ETF so easily (especially w/ iPhone being announced for a different carrier days before). I could see them taking Cingular's "nonessential service" route cited above. The again, I could (I hope) be wrong! Someone please prove me wrong. Please.
CJ @ Jan 12th 2007 6:19PM
C'mon, it's clear by this point that you can't leave without an ETF. The only way you can is if you've negotiated your contract from the get-go without an ETF (some national contracts are negotiated this way). Otherwise, their language says that you can drop the affected service without a fee, which means you can drop your text messaging package and it won't cost you anything nor will it change the terms of your original package.
bassthumpa @ Jan 12th 2007 7:17PM
I would imagine that - if this does indeed open an escape hatch from contracts - it would be good for those who have text message plans. Even with a txt plan, you still can go over (as my wife has done a few times with their largest package) and have to pay per message for any overage.
elgee02 @ Jan 12th 2007 8:04PM
#14
Read the link I posted in comment #3. It states that the rate you pay for text-overages on a text bundle WILL NOT change, it will still be 10 cents for every text you send/recieve over your bundle's allotment.
David @ Jan 12th 2007 9:11PM
It's criminal to charge that much for texts. The strain on the system from txts compared to all other services must be like .00001% Boo!
David @ Jan 12th 2007 9:13PM
....Furthermore, the DOJ should investigate. This is so price fixing!
elgee02 @ Jan 12th 2007 11:26PM
Hey David where were you when Cingular and Sprint jacked up their texts?
Iknow everything @ Jan 13th 2007 12:09AM
Actually in the terms and conditions for Verizon wireless service it clearly states "..We can also change the prices and any other conditions in this agreement at anytime by sending you written notice prior to the billing period in which the changes would go into effect. If you choose to use your service after that point, your accepting the changes." So the notice has been given...so no etf credit. Please dont give people false hope and report incorrect information. If .05 is going to break your bank, you don't need a cell phone anyway.
OGHowie @ Jan 13th 2007 2:12AM
A few people have already reported on Howard Forums that they were able to get the ETF waived by supervisors. Looks like you can get out of your contract with a bit of a hassle.
WamBam @ Jan 13th 2007 11:58AM
I tried to get out of my contract and it's a no go. I have a messaging plan and after speaking with 4 reps and a rep supervisor, it's clear that Verizon is not offering a way out of the contract. Or, at least not to people with a messaging plan.
The mesaging plan is a seperate contract from the voice plan, which is also the core TOS. Verizon will allow me to cancel my messaging plan, but that would make no sense because I would then either have to pay the increased txt prices, or just sign up for a new plan.
It seems that if you don't have a messaging plan, you might be able to argue that messaging rates are part of the core contract and the rate increases affect the TOS. But that's going to be a tough argument. I'm pretty sure that anyone who says they got out of their contract is a liar.
Blazecarson @ Jan 13th 2007 12:20PM
Its true, but only if you dont have a msg plan. They will give you the run around, and try to offer you things like, a new phone, waiving the extra 5 cents for the rest of your contract, ect.... but dont be fooled..keep reading the rights to make changes over and over till you get a supervisor... basically if you dont cancel you effectivly accept the change ... just say you dont accept the change and you want out of your contract... make sure to state that the increase is the only reason you want out... any other reason will open the door to an hour or so of up selling... stay calm and strong... you can do it!
Jamie @ Jan 13th 2007 3:02PM
i posted this on howardforums, but i thought it might be of use here as well.
I just got off the phone with CS. My contract doesn't expire for a full year but i was able to get my plan switched to a monthly. The CS rep switched my expiration date to today. I DID/do have a text message package (1000 texts for $9.99 per month). They key to getting the ETF dropped or getting your contract switched to a month to month is the International Messaging rates. I have never received an international message buy i told them that most of my friends are International Business majors in college and will be doing a study abroad next semester. He tried to tell me that text messaging is not part of the contract, but i pointed out that text rates are one of the main things that salespeople hit on to get you to sign the contract and that i felt like i was being forced by verizon to keep my texting package. I was only on the phone for about 25 min, and still have butterflies in my stomach. The best thing about getting switched to the month to month is, unlike canceling your contract, you can port the number. If i missed anything, let me know. Good luck!
ps. I also mentioned to him that Sprint did the same thing not too long ago and let their customers out.
Roberto @ Jan 13th 2007 4:10PM
being a VZW employee I would like to let everyone know that the only changes we have been told about are in increase in international texting not dometic.
Briguy @ Jan 15th 2007 8:40PM
Roberto, check your website under legal notices.
I just got off the phone with CS. The guy told me that if I called to VZW and complained that the 5 cent increase was a burden, they would credit me the 5 cents (within a certain time frame). Since VZW was crediting people and alleviating the burden, the material change does not apply. Just what I was told.
Toby @ Jan 16th 2007 9:29AM
Well after a few phone calls I got verizon to agree to let me out of my contracts (two seperate ones) with no early termination fee - but I would have to do it within 60 days (from now or from March 1st, depending who I spoke with). But they would not convert my account to a month-by-month account.
They do try to make things right though - but offering free texting packages until the account reaches its two year experation - you just have to be firm that the terms have changed and are not what you agreed to when you signed your contract.. especially if you DO have a text plan, you need to be firm that they have changed the rate of receiveing txt from international carriers from 10 to 15 cents.
Jerome @ Jan 17th 2007 11:32AM
Yeah, got out of my contract as well, I had three lines, and only one of them didn't have a texting package. The lady told me I can cancel all of my lines based upon the rate increase internationally. She tried to offer me 100 dollars credit to offset the international texting charges, but I didn't budge.
Jessica @ Jan 17th 2007 3:47PM
Yes! I just ended a call to VW customer service, asking to end my contract now without ETF due to the increase in text message rate. (I did not have a text bundle package with them.)
At first, the CS rep (who was quite decent about the whole thing) put me on hold to discuss the situation with her supervisor. She returned saying that I could not end my contract without paying the ETF, but that they would give me a $5 credit. I asked for what? She said it a one time $5 credit does nothing to cover any inconvenience that I would have to keep paying more each month. Then she tried to talk me into adding the text bundle to my plan. (I am calling to cancel the service, and they are asking me to pay more?) So then I asked (nicely yet firmly) to speak with her supervisor. On hold once again, and thinking that I would have to really focus the argument to make my case, cross navigating the internet screens of their service agreement and everyone's comments here for reference...Then, to great surprise, she returned and said they would cancel the contract without the ETF, which I had her repeat jsut to make sure, and that was it. It's done!
Even though I didn't have to verbally really state my case to the supervisor, all of the comments here really prepped me, so thanks! Good luck to everyone!
LORI IN WISCONSIN @ Jan 17th 2007 9:08PM
Hi all! Been reading all the posts.
Question... I have SPRINT, and just recieved notice
that they are raising the price of their TOTAL EQUIPMENT PROTECTION PROGRAM from $6 to $7 per month effective Feb 18, 2007. Is this enough of a change to allow me to try to get out of my contract with the ETF?
(maybe someone can start a thread about this)
Thanks for your help!
Lori
elgee02 @ Jan 18th 2007 3:06AM
"(I am calling to cancel the service, and they are asking me to pay more?)"
Uhh weren't you calling to cancel because of an increase in text messaging rates? Or where you simply using the increase as a convenient excuse to whine your way out of an ETF for a separate reason?
If the former, then: A) I sure hope you are porting to Alltel or T-Mobile, cause Sprint and Cingy actually beat VZW to the punch with the text rate increase. B) Her offering a bundle makes perfect sense to you because it gives you a lot of texts (depending on the package of course) for a monthly amount that comes to a whopping TWO CENTS (or less) for every text sent or received, clearly positioning the bundle as a rather smart alternative to paying per text (be it at 10 cents or 15 cents per text).
alkric @ Jan 21st 2007 2:19PM
Ok. I'll drop Verizon. But what should I do next? Is Sprint or Cingular better? They all the same. "There is no way out Leo". Good luck!
spalk @ Jan 21st 2007 9:53PM
I just got off the phone with CS. After 30+ minutes of arguing with the supervisor, I'm getting out of my contract one year early - March 07, instead of March 08. I probably could have argued more and gotten out today, as some of the previous posters did, but this works well for me. I was 1st offered a $20 dollar credit, then a 1-yr contract termination (March 07) plus a $50 fee to off set the Phone rebate I received as part of my 2-yr agreement. Finally I agreed to have my contract changed to a 1 year contract (down from 2 years) without any additional fee. There after I will become a month to month customer.
It was a bit of a pain dealing with the 1st rep, then the supervisor, but eventually they start trying to make you offers. Stick to your guns. Quote "Adverse Material Affect" from the contract. And enventually you should get out of the contract.
Claire @ Jan 25th 2007 1:30AM
IT'S TRUE... you can get out for free. I just got out tonight. They are letting me out of my contract as of March 1st because that is when the changes in your bill take effect. I got out without any early termination fee. Dial on your verizon phone *611 and go to technical support for texting. AND BE FIRM and tell that it states in the customer agreement contract that under the circumstance that if any changes that take place in your billing have an "adverse material affect" you, as a customer, reserve the right to NOT ACCEPT THESE CHANGES. It does NOT matter if you have a plan for text messaging. I have a plan for unlimited IN texting and 50 out of network texting and all I brought up was about the international text messaging. It is being raised from .10 to .15 cents per message received. And they try to give you credit of like 5 dollars and try to get you to do this and that but the fact of the matter is, you don't have to justify why... but say to them that you DO NOT have to accept these changes and you will be terminating your service without any early termination fee. THIS APPLIES TO ALLLLLLL CUSTOMERS. Just make sure you try to do it before you pay your bill for March because at that point, I think you might not be able to get out. It's simple. I'm FINALLY free of Verizon. UGH
CruiSin @ Jan 26th 2007 2:16PM
I got out of my contract on Wednesday. The rep was unsure about the no ETF, so she referred me to her supervisor who was unavailable. They left me a message stating I could cancel out March first because that's when the change took effect. I called back and insisted that the contract specifically states that I can cancel within 60 days of the notice, not from when the change is implemented. She referred to her supervisor, came back and offered a texting package...when I declined she confirmed that they can terminate whenever at my request. I wanted it noted in my account that there would be no ETF and set it to cancel at the end of my current billing cycle. Now I can port my number and be done with Verizon.
oka @ Jan 28th 2007 11:22AM
all of yall are acting like babys sprint raised the price and every one jumped ship verizon raised the price now people are jumping ship are you gonna keep going to different cell companies and jump ship the first chance you can. Whats the purpose ? why sign a contract then in the first place ? why not go prepaid ?
LORI IN WISCONSIN @ Jan 30th 2007 12:51AM
any one have any news on the sprint change that was mentioned in the original post?
doug @ Jan 30th 2007 4:45AM
i spoke to CS reps 3 times and couldn't get out of my contract. they said that they would give me 10 cent messaging until my 2 year contract was up since that is what the change was. i was able to get $5 credit on both my lines for the remainder of my contract. that is fine with me since i don't want to leave verizon anyway. every cell phone company has their issues and verizon does have the best network. its just too bad their phones suck and service is so expensive.
Manny @ Jan 30th 2007 4:17PM
Called VW CS rep and supervisor and they told me that and TXT messaging rate increase does not constitute a breach of contract so they can let me out without a early termination fee. So they told me I cant do anything about it and had to live with the increase. Well I was fed up with them at that point. So I used the magic word thats in their contract "Arbitration" At that point the supervisor was miffed at me and told me she would pass my request along to someone that handles this. 1 hour later got a call from some kind of manager and asked why I wanted to take this to Arbitration. Then told me that I would have to pay fees to the arbitrator if I lost and I told him I dont care lets get it on. After 5 mins of him lecturing I was let out of my contract without an early ETF. Effective the day of my billing cycle which is the 26th of this month. Just stick to your guns and tell them you REFUSE the rate increase. When someone tells me I have no choice and that I have to accept it I dont. And they went as far as to tell me they could raise my plan and still wouldnt mean a breach of contract. But I beg to differ.
Tom G @ Feb 1st 2007 11:50AM
I just got off the phone with Verizon to confirm my release from contract without an ETF as I recieved a bill yesterday with them on there, and yes the ETF's were credited back to the account and I was released. If you need the verbage to use feel free to repost and I will post in when someone asks for it. The whole thing to get out of the contract with no ETF's took three 3 minute calls. The biggest thing is stay calm and cool.
judy @ Jun 28th 2007 11:34PM
Tom G, I need your help. Need to get out of my VW plan. Please share your awesome script! THANKS!
sapna @ Feb 6th 2007 9:39PM
Claire (and others who have been successful in getting out of the contract without ETF) : could you please share where that line appears in the customer agreement (the line about how is billing changes have an "adverse material affect" you, as a customer, reserve the right to NOT ACCEPT THESE CHANGES)? I just got off the phone with CS and they were being very sticky asking about where exactly this appears, and I can't seem to find my original customer agreement document. Thanks in advance.
Jessica @ Feb 7th 2007 1:17PM
The verbage can be found on verizonwireless.com. At the bottom of the page there is a link called "Customer Agreement". Here is the exact paragraph.
Our Rights To Make Changes
Your service is subject to our business policies, practices, and procedures, which we can change without notice. UNLESS OTHERWISE PROHIBITED BY LAW, WE CAN ALSO CHANGE PRICES AND ANY OTHER CONDITIONS IN THIS AGREEMENT AT ANY TIME BY SENDING YOU WRITTEN NOTICE PRIOR TO THE BILLING PERIOD IN WHICH THE CHANGES WOULD GO INTO EFFECT. IF YOU CHOOSE TO USE YOUR SERVICE AFTER THAT POINT, YOU'RE ACCEPTING THE CHANGES. IF THE CHANGES HAVE A MATERIAL ADVERSE EFFECT ON YOU, HOWEVER, YOU CAN END THE AFFECTED SERVICE, WITHOUT ANY EARLY TERMINATION FEE, JUST BY CALLING US WITHIN 60 DAYS AFTER WE SEND NOTICE OF THE CHANGE.
Kristy @ Feb 9th 2007 10:40AM
yay!! just got out of mine...less then 1 minute, no arguing or anything.
I asked if the rates were going up, she said yes, then i asked if that meant that my contract was void, and she said yes if i refused the new charges :) even though i have unlimited text messaging, which she brought up but i told her that it was still a change and that i would like to go ahead and cancel. she said ok :)
yay!! thanks for all the information, it really helped!!!
jacquline thorpe @ Feb 9th 2007 11:42PM
all of you who think this is a lie are STUPID!!
i just got all 4 of my phones contract end date moved up to march 1st! it is 100 percent true. && i worked for the company. HELL YEAH! apple phone here i come.
jacquline thorpe @ Feb 10th 2007 12:17AM
talked to a customer service with vzw. told them that even though i had a unlim. messaging bundle with any vzw customer that the price rase for texts breached my contract. && that i did not accept the new terms && conditions. && i wanted all 4 [yes ladys && gents. all 4] of my phones to be out of contract march 1st. this is when it is taking place! the rep said okay. && notated my account! lovely!!! i was calm && understanding the whole time. he didnt even try to argue. i told him i wanted the apple [iphone] because me && my husband own our own graphic design company. [intriguegraphix.com] && we used mac's && the apple phone is compatable with it. he said okay. && IM FREE!!! so yes. its very possable. now run to your phone && make the call too!!!
NuLL @ Feb 10th 2007 12:24AM
They refuse to let me port my number out. The 2 options i'm given are tough shit or loose our numbers.
VZW Cust Service Rep @ Feb 10th 2007 8:02AM
Okay, I'm a Verizon Wireless Customer Care rep, and I'm going to give it to you straight...
Text messaging is an optional feature. You can choose to use it or not. A text message rate increase is NOT a 'material adverse effect' for that reason. If, by 3/1/07, we were forcing all customers to change their pricing plan to a higher pricing plan, then THAT would be a material adverse effect. Text message rate increases don't count.
Besides, if you text message enough to even care about the rate increase, if you have at LEAST a $5 text package, any text/pix/flix you send over the allowace is still $0.10 per message.
If a supervisor let's you out of your contract because of this text increase, it means you got lucky enough to talk to a sup without a backbone, as no supervisor I've spoken to is about to let anyone out of their contract.
So, best of luck to all of you who just have to 'stick it to the man', because in this case, you probably won't get very far.
Dee @ Feb 18th 2007 9:44AM
I just tried to cancel and was unable to. They claim that my account is not adversely affected because of the limited number of text msgs that I send. I asked who determines adversely affected. They gave me the runaround and offered to not increase my text msg rates. I informed them that I was not satisfied and would be filing a BBB complaint as well as contacting the VP of customer service. They said that was fine. Annoying! It feels as if I will never be free of Verizon and I have been a customer for 10 years!
elgee02 @ Feb 18th 2007 2:37PM
Why do you want to be free so bad? It's obviously not about the text messaging rate increase so I wonder...
Steven @ Feb 19th 2007 4:22PM
I want to get out of my vzw contract. To all of those who got out already how do i go about talking to them and telling them that i don't agree to these new terms. I have a text messaging plan and the vzw rep said that the text messaging package isn't affected by the 10 cents to 15 cents increase. Someone please help me with getting out of this, I can't stand verizon