|
Again, I think it is a disclosure issue.
In exchange for a 2 year contract, you are getting two benefits.
1) Subsidized hardware
2) Discount to monthly fee
So to be truly transparent, you'd need the following options
1) Pay full price for hardware and have a no contract monthly rate of x
2) Pay full price for hardware and have a contract rate of (x - rate discount for contract)
3) Get subsidized hardware and a contract rate of (x - rate discount for contract + add on to recoup the cost of the subsidized phone)
The early termination fee should be some combination of the present value of the contract discount that you should not have gotten since you did not fulfill the 2 year contract and the costs of the subsidized phone that have not been recouped.
|