FCC questions Verizon's smart phone fees

December 4, 2009 5:49:20 PM PST
The Federal Communications Commission is asking Verizon Wireless to explain why it doubled the fee for smart phone customers who want to get out of their service contracts. Verizon raised its early termination fee from $175 to $350.

The fee applies to smart phones including Blackberrys and the new Motorola Droid.

Verizon says the increase reflects the higher cost of offering those devices to customers at attractive prices.

Critics say Verizon is trying to prevent customers from switching to rival carriers.

The FCC has given Verizon until December 17 to respond to its inquiry.