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Are these ETFs flat rates? Meaning, is the ETF the same for cancellation at a year in a half and two months in? If it is, that does seem ridiculous, but if it
by tkahn6 17y ago
Are these ETFs flat rates? Meaning, is the ETF the same for cancellation at a year in a half and two months in?
If it is, that does seem ridiculous, but if it isn't it should be taken into consideration that a droid at retail without a two-year contract costs ~$600. If someone buys a droid at $200 with a two-year contract and then cancel's their contract, Verizon would (with the old ETF) effectively lose ($600 - ($200 +$175+profits on whatever data/minutes you paid for)).
The reason you can buy the phone at $200 is because you've said that you'll make up the difference (and allow them to turn a profit) in data/minutes fees over the next two years.
Whether or not they should be making a profit on the ETF is up for debate, but at least they should be allowed to break even.
- keltex 17y agoETFs usually go down by $10 per month. So after 1 year, $350-$120=$230.