Verizon today provided its anticipated response (PDF) to the FCC's inquiry about its sudden hike in early termination fee (ETF) rates for smartphones. The carrier insists that the higher prices of phones like the Motorola Droid are too high to leave the cancellation fees at their regular $175, as it would take a significant loss if a customer with "advanced device" were to quit but only pay the previous one-size-fits-all rate.
