Verizon’s new gotcha for mobile customers: the $350 ETF

Before you you rush out and and sign a contract to get your hands on that hot new Droid handset in a couple of days, consider this: If you want our of the contract, you’ll have to pony up as much as $350 to leave the dark helmeted one’s network. The ETF will decline by $10 a month. That means you’ll still pay as much as $120 to leave in the last month of a two year contract.

The carrier is raising early termination fees on Novermber 15 to $350 for “advance devices” only. Clearly VZW is targeting users who were abusing the buy one get one free BlackBerry deals and those that figured out that it was cheaper cancel their current contract and pay the $175 ETF than to pay full retail for the hot new handsets like the Droid. (Mobilecrunch)

How’ that much ballyhood “network neutrality” for mobile really working out? As long as carriers can lock devices to their networks, and keep other compatible devices out, the marketplace will never work for the consumer. While there’s been plenty talk from the almighty FCC about addressing this, no real action has been taken.