Verizon to sell HTC Android phones for only US$99.99

Verizon is looking to put pressure on rival company Sprint Nextel with the recently launch of Droid Eris, a device looking very similar to HTC's Hero phone, which Sprint currently sells for US$179.99. However, Sprint spokeswoman Michelle Leff said her company was not looking to lower the sales price of Hero.

Leff believes that when Verizon and Sprint monthly service fees are included in a comparison of the total cost of buying each phone, purchasers of the Hero actually end up paying less than Droid Eris users even after factoring in Hero's higher retail cost.

The Droid Eris joins Verizon's list of potential iPhone killers along with the heavily advertised Droid from Motorola, which is based on Google's operating system. Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc  is gearing up for the upcoming holiday season when sales are expected to rise.

Verizon Wireless also announced plans to increase early termination fees for smart phone customers who leave the service before the end of their two-year service contract to help offset the hefty subsidies it is paying for such devices. This new rule will take effect after November 15 when new smart phone customers will be required to pay US$350 if they wish to terminate their subscription prematurely. The US$350 figure will decline by US$10 for each month of the service contract that has passed.

On the other hand, Sprint says it has no intention to raise its termination fees.