The company today responded over its decision last month for "advanced devices," such as the Motorola Droid.

The $350 fee has been widely criticized as excessive. Not surprisingly, Verizon disputes the claim , filed Friday with the Commission.

In its response, Verizon reveals that its ETF doesn't just offset the cost of subsidized hardware given to businesses and consumers, but pays other costs as well. The fee applies to individual customers and small businesses that cancel before the end of their contract.

"The ETF is not limited to the recovery of the wholesale cost of the device over the life of the contract," Verizon told the .

"The ETF partially compensates Verizon Wireless for all the costs and risks of providing service, which include advertising, commission, store costs, and network costs."