With the Federal Communications Commission (FCC) having sought an explanation from Verizon Wireless about the rationale behind its November 5-announced decision to double its smartphones’ early termination fees (ETF) to $350, Verizon has doggedly defended its move saying that it makes advanced devices available at reasonable prices.

While Verizon’s increased ETF – fees for breaking the carrier’s contracts before time – move has been widely criticized and there have been calls for federal legislation limiting ETFs, Verizon, in its December 18-dated written response to the FCC, said: “This pricing structure enables Verizon Wireless to offer wireless devices at a substantial discount from their full retail price.”

Elucidating the raison d'être behind its ETF-hike decision, Verizon added: “By reducing up-front costs to consumers, this pricing lowers the barriers to consumers to obtaining mobile broadband devices. It thus enables many more consumers, including those of more limited means, access to a range of exciting, state-of-the-art broadband services and capabilities.”

Verizon’s claims that the increased ETF not only helps it settle the costs of subsidies; but also gives it enough leeway to cover up the additional marketing and support costs that need to be incurred in the case of advanced devices.

To serve as an example, Verizon’s subsidized cost of the RIM BlackBerry Storm 2 is less than $200, with a new two-year contract – otherwise, the cost of the device, without a contract or ETF, is nearly $539.