Verizon's response:

A broad array of Americans who might not otherwise be able to afford broadband connections to the Internet with a home PC, or by paying full price for a smartphone, have an affordable way of participating in the online world when they choose a subsidized option.

Also noted is the fact that smartphones are available at full, unsubsidized price, although it's not mentioned that the monthly fee doesn't change with an unsubsidized phone and that said unsubsidized phones are incredibly expensive. Hey Verizon, haven't you heard that this is a recession? Have some consideration. [The Hill]

If it is true, Sprint will probably try and weasel their way out of this when you callso you need to stick to your guns. If you have already paid and ETF to Sprint, you may want to check out the class action settlement to see if you qualify for a $90 reimbursement. [Thanks Steve!]

Ely Rosentock made the above video laying out every argument they'll use against you and every counterargument you should use to refute it. It's essentially a guide to refuting their script, and it's awesome. He discusses Verizon specifically, but it should apply to all the carriers. So, contractually-trapped friends, go forth and break free! Let us know how it goes. [Crastinate via Consumerist]

Consumerist lays out exactly how to do it (it's for AT&T, but it should still work): Cite the hike as your reason for canceling; don't pay your bill at the new rate; don't give in to a cheaper plan; be steady like a rock. (Update: Make sure you get the notification of the price change first.) BTW, anyone else think doing this pre-iPhone 3G launch (whose 3Gness won't work on T-Mo) is like the worst timing ever? [BGR, Consumerist]

If you've got 180-91 days left, the ETF penalty drops to $100. 90 days or less, it drops to $50, and with fewer than 30 days, it's either $50 or your monthly fee, whichever is cheaper. But if you've got more than six months looks like you're gonna get smacked. (Update: Consumerist editor and nice guy Ben Popken tells me it's not technically pro-rating, since the fee goes down in increments and never touches zero.) Full details:

T-Mobile Offers Customers Additional Service Plan Flexibility

The Recognized Leader in Wireless Customer Care
Launches ETFs That Decline During the Course of an Agreement

BELLEVUE, Wash. – June 23, 2008 – T-Mobile USA, Inc. today announced a new approach to early termination fees (ETFs) that provides greater flexibility for T-Mobile customers.

Beginning on June 28, 2008, the ETF for customers who choose a one-year or two-year service agreement with T-Mobile will decline during the course their contract. The ETF decreases from $200 to $100 if customers terminate service with 91 to 180 days remaining on their agreement; and decreases again to $50 with fewer than 91 days remaining. If customers terminate in the last 30 days of their term, the ETF is $50 or their standard monthly charge, whichever is less.

For customers who do not want term commitments or ETFs, T-Mobile offers a variety of service options, including:

•T-Mobile FlexPaySM: A program that offers customers access to nationwide long-distance calling and roaming, the latest phones, and T-Mobile’s great rate plans including myFavesSM — all without having to commit to a long-term service agreement or make a hefty deposit.

•Prepaid Plans: Flexible plans that give customers the freedom to communicate with no annual contract, no credit checks and no monthly bills. Prepaid options include:

•Pay By The Day: Recently introduced, this option costs $1 per day only on days when the phone is used. In exchange, customers get unlimited T-Mobile-to-T-Mobile calling all day and unlimited nationwide calling from 7 p.m. to 6:59 a.m. All other domestic calls are just 10¢ per minute and text messages are 10¢ to send and 5¢ to receive.

•Pay As You Go (previously named T-Mobile To Go): Customers can purchase minutes as they need them. Customers who purchase $100 in refills become Gold Rewards members and receive 15 percent more minutes on all future refills.

•Sidekick Prepaid (previously named Sidekick To Go): T-Mobile Sidekick® fans receive unlimited domestic e-mailing, Web browsing, instant messaging, and text messaging for $1 per day, and nationwide calling costs just 15¢ per minute.

“T-Mobile continues to set the pace in offering customers a number of flexible plans and services that don’t require a contract to help them stay connected to those who matter most,” said Sue Nokes, Chief Customer and Operations Officer, T-Mobile USA. “In addition, by providing this flexibility and choice, our hope is that T-Mobile customers will be happy customers for years to come.”

Earlier this year, T-Mobile received highest ranking in the J.D. Power and Associates’ Wireless Customer Care Performance StudySM for the seventh consecutive reporting period. Additional information about T-Mobile calling plans can be found at www.t-mobile.com/shop/plans/.

[T-Mobile]

By taking a subsidy on your phone up front (such as on the iPhone 3G), you're paying less in exchange basically telling AT&T that you're going to stick with them for 2 years. If you want to leave, you can pay that $175 and get out of your contract. In this case, with the iPhone 3G, it basically lets you walk away with a iPhone 3G that you can use on T-Mobile for $374. That's not too shabby.

But a recent AP report said that Sprint waived all ETFs to a government agency that was signed up with it, essentially because "the government will never, never accept such penalty amounts." [Ars Technica]