FCC inquiry into Verizon $350 fee can be solved with truthful billing

The News: The FCC is investigating Verizon because they've updated their "early termination fees" to $350 from $150. 

"In light of the Commission's ongoing interest in the issues associated with [early termination fees] and its pending proceeding regarding disclosure of billing information to consumers, we seek a more complete understanding of these practices," the agency says in the letter. 

That is a big change but Verizon has started to sell some expensive phones like the Motorola Droid.  If they buy it for $600 and sell it for $200 with a plan, they should be able to recoup the rest if someone splits after paying a month of service and the $200.

But what if they want to quit a year into the plan?  Still $350?

The solution: TRUTH IN BILLING.

If Verizon is taking a subsidy as part of your bill every month, make them say exactly how much on the bill is subsidized, in writing.  Say it is $20 just for argument.  On your bill, it should say:

• Service....$xxx 
• Phone subsidy...$20
• Taxes ......$xxx

Then if/when you quit early, you know exactly how much you owe because you know how much subsidy you have left to pay.  If you are half way through your contract in this case, you owe $240.  Simple.  Fair.

An added bonus is that you don't keep paying the same rate when you keep your plan beyond the contract.  For instance, if I keep AT&T beyond my two year iPhone contract, my rate should go down, since I've paid off the subsidy.  Right?

Obviously, the carriers are going to to try to bribe lawmakers into avoiding this scenario, they take millions of extra dollars from their most loyal customers by charging them the same rate after they've paid off their subsidy.

But we have a consumer-friendly FCC under Jules Genakowski these days, and the most simple and right solution may actually get a look.