Verizon jacks up early cancellation fees on smart phones

With a whole new line of smart phones coming onto the market, Verizon Wireless says that starting November 15 it is doubling to $350 the penalty fees for subscribers who leave their contracts early. James Gerace, a spokesman for Verizon Wireless, the nation's largest cell phone provider, said the fees are for subscribers in one- and two-year contracts on an "advanced device" and that those fees will be prorated $10 a month. Gerace said the company decided to raise fees because phones are just getting more expensive. The firm subsidizes the overall cost of its fastest and most tricked-out phones to make the upfront price more appealing to customers. He said consumers can buy any of the phones that work on Verizon's network without signing a contract. So if you want to buy a Blackberry Storm 2 you could get the device for $180 with a two-year contract or pay $539 to use the phone without any obligation for your term of service.