In a quiet move, the global communications and technology leader Verizon has changed its ETF policy. The telecom giant has taken this step in alignment with the growth of its EDGE early upgrade program and the diminution of the 2-year agreement. Both these situations have forced the carrier to make adjustments in order to recoup the value of increasingly expensive smart devices. Also, it’s quite probable that the changes are also aimed at the promotions of ETF payments offered by rival carriers such as T-Mobile and Sprint to attract prospective customers.

For all the new customers who will be signing a 2-year agreement or those who renew their agreement after today, Verizon’s decision will have an impact as it is delaying the monthly ETF rebate and proration for customers under an agreement. The new terms of the agreement demand that the monthly ETF rebate will be applicable after eight months of service. According to the newly set terms, customers who decide to leave before 8 months into the stipulated agreement period will pay the standard $350 ETF. Also, these ETFs will now be prorated and discounted by $10 per month, which again will be applicable only during the 8-18th month of the agreement. During months 19–23, the ETF discount increases to $20 per month and goes up to $60 in the last month of the new 2-year contract.

As per the former ETF policy, customers who bought a smartphone under a 2-year agreement were subject to an ETF of $350. The fee was then prorated and reduced by $10 every month starting after the first month of the agreement. Customers who decided to pay the ETF after six months under the old policy would have been required to pay an ETF of $290, taking into account the monthly reduction totaling $60, instead of $350.