FCC asks Verizon Wireless to explain fees

In November, the carrier hiked the maximum early contract termination fee for smart phones to $350 from $175. Like other carriers, Verizon subsidizes the cost of the devices for contract-signing customers, then expects to make that money back in service fees over the term of the contract.

"Smart phones quickly became a major part of our business and cost us a whole lot more," Verizon spokesman Jeffrey Nelson said.

The FCC`s letter to Verizon asks how consumers will know whether the increased fee applies to their phone, and whether it`s spelled out anywhere except in the formal customer agreement.

The FCC is also asking the carrier about $1.99 data access fees that have appeared on the bills of customers who don`t have data plans, but accidentally initiates data access by hitting a button on their phones. Verizon says that as of a few months ago, it doesn`t charge when a customer starts a data service, then quickly turns it off.

The Plain Dealer in Cleveland tapped into a vein of frustration among Verizon customers in columns on the issue in August.

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