If FIOS raises prices, why switch? If FIOS raises prices, why would people switch from cable to FIOS? People can clearly see lower prices, while all businesses talk about their product being superior. This new strategy will simply result in a low market share for FIOS.
It really is unbelieveable. This makes me wonder what he is smokin to think this is a good idea.
The things people say to make money.
World of Warcraft
reply to PastTense
As much as I hate to say it... VZ is raising rate at a slower frequency than Comcast.
FiOS also demolishes Comcast in transmission quality, at least in my area.
So I guess the lesson is either cut the cord or bend over and take it .
"If something about the human body disgusts you, complain to the manufacturer" - Lenny Bruce
What this country needs is a good five dollar plasma weapon.
More rediculus pricing This makes me glad I locked my 150/65 triple play in for the 2 year price, luckily for me after I dumped HBO the price of my package only went up about $10 a month. Maybe sometime in the next 2 years this guy will lay off his crack pipe and realize these price hikes are just idiotic.
Noah VailSon made my AvatarPremiumReviews:
Before some says "The Value is in Bundles!" I'd like to offer that there are plenty of folks who buy just broadband. There's no meaningful reason to marginalize us.
That said, I can currently get Vz 130/65 for ~$105 (standalone, no contract) - a reasonable price for that tier.
Maybe we'll settle into a scenario where Cable serves the lowest income brackets and Vz sells to everyone else.
That's not really competition but it's somewhat better than the duopoly-lock that the FCC considers competitive.
Campaign contributions influence laws through a process called bribery.
It just doesn't make sense. Why does Verizon think their 15/5 is worth $70 when Cablevision provides 20/2 for $30 (or 50/8 for $45)? I switched from FIOS to OOL 20/2 when my promo expired. I know $30 is OOL promo rate but even their regular rate is much cheaper (I think it is $45 or $50). Plus people report that often OOL gives discounts after promo is over. When I called Verizon FIOS the attitude was "don't let the door hit you on your way out".
I think someone at FiOS just failed business 101....
reply to JoeSchmoe007
Because it's all about the fiber VZ will continue to ride the FiOS brand until it doesn't work. VZ is simply continuing its premier branding, just as it does with its wireless division. For most consumers, the means of transmission is irrelevant. Important are things like "speed" and cost, as you allude to, but VZ has done a great job of branding FiOS as superior.
pnh102Reptiles Are Cuddly And PrettyPremium
Mount Airy, MD
No Problem Those of you who have the option of cable or FIOS would probably be able to take advantage of cable's new subscriber rates should this happen... and once those rates expire, FIOS might give you a similar new customer rate. Lather, rinse, repeat every year.
If your spouse or significant other has a different last name than you, then this becomes even easier to do.
Romney/Ryan 2012 - Put a couple of mature adults in charge.
losing customers higher prices will equal lost customers. in NY metro 15/2 is not $70 standalone.. it's actually higher (I checked) and for that price they might as well go out of business because they're saying we don't want you as a customer when their nearest competitor offers a price at less than half that (as a new customer for a year) and even off promotion a cable 15mbit tier is upwards of $20 cheaper.. why bother? what's is gonna be next, $100 for 15/2?
gimme a break.. cling to those rate locks while you have them.. because it's likely you will have to switch when the time is up.. verizon doesn't generally extend offers that don't include a rate hike.. for nothing other than time goes by.. you pay more..
Don'cha wish paychecks did that too?
Santa Monica, CA
reply to JoeSchmoe007
Re: It just doesn't make sense.
said by JoeSchmoe007:Why? Because 30% of the population (and likely 90% of this forum) is willing to pay $70/month for they perceive to be a superior product.
Why does Verizon think their 15/5 is worth $70 when Cablevision provides 20/2 for $30 (or 50/5 for $45)?
"On the revenue side of the house, we really concentrated this year on getting our price points equivalent to where the rest of the market was,"Once installed, I thought FIOS was supposed to be cheaper than alternatives. If the maintenance is lower, shouldn't FIOS prices be lower than cable? Is the quality difference sufficient to justify higher prices? Does the average consumer notice the difference? Do they even know what the difference is? If not, why would they pay the same or more vs. a competitor?
Whatever happened to the business with better quality and lower costs gaining market share and forcing competitors to respond or go under? Given the limited footprint and massive capital investment, why wouldn't Verizon want to own as many subscribers in their FIOS areas as possible? Why would they be content settling for their current ROI based on "...price points equivalent to the rest of the market..."? Perhaps the leader is too young to understand paper route economics where delivery expenses are nearly fixed regardless of how many houses get a paper.
Well it cost them billions to run fiber to people's homes, so while maintenance will be cheaper, the original install costs way more then what more companies will pay for years..
reply to rradina
said by rradina:No, but VZ's margins might be better.
If the maintenance is lower, shouldn't FIOS prices be lower than cable?
said by rradina:Similar questions are asked each time debates surrounding ever increasing bandwidth tiers are presented. Most consumers probably won't notice a tangible difference worth the premium price points.
Is the quality difference sufficient to justify higher prices? Does the average consumer notice the difference? Do they even know what the difference is? If not, why would they pay the same or more vs. a competitor?
said by rradina:When everyone can make more money, what's the motivation to reduce rates? Drive a comfortable competitor into a price war?
Whatever happened to the business with better quality and lower costs gaining market share and forcing competitors to respond or go under?
said by rradina:You don't think VZ is well on its way toward price points higher than the rest of the market? VZ has done a nice job of branding FiOS (and its wireless business) as a premium service, worth a premium price.
Why would they be content settling for their current ROI based on "...price points equivalent to the rest of the market..."?
Raise prices... ...that will spur adoption!
·Time Warner Cable
reply to PastTense
Re: If FIOS raises prices, why switch? No surprise. This is business 101. Get traction, raise prices, introduce gaps in preferential pricing. Every beef on this thread is exactly what Verizon wants.
With that said, Verizon sunk a lot of capital into my GPON, and TWC is busy plastering my mailbox w/ $89 deals w/ a whole home DVR for free. When my NO CONTRACT price lock expires in Jan, you bet I will be having a stocking stuffer of either VZ or TWC. They are commodities to me, nothing more.
I think Verizon made a big mistake in running B/GPON's and they know it. They should have run Ethernet optical SW/copper and handled optical at the node level. That way they wouldn't have to keep swapping equipment at the prem, or if they do, just a transceiver/router.
The sooner these yoyos understand they are simple commodities the better. Since I use only a cable card, I just swap it out and reprogram the channels. Now for $10 a month I'm not going to move, but for $30, suck eggs.
BTW - I'm perfectly happy w/ my 25/25. It serves my needs. But alas Verizon is not happy, and who cares about the customer?
I think Verizon got caught flat footed on how quickly the dinosaur cable companies rolled out D3 and ate their DSL and FIOS lunch. As I said they are commodities...Perfectly fungible. So the quants decided that 30% penetration was all they were going to get, so slowly turn up the heat to maximize profits.
reply to openbox9
Re: Key Phrase
said by openbox9:So do we need regulations? Seems like collusion.
When everyone can make more money, what's the motivation to reduce rates? Drive a comfortable competitor into a price war?
said by obenbox9 :How can both statements be true?
Most consumers probably won't notice a tangible difference worth the premium price points... ...VZ has done a nice job of branding FiOS (and its wireless business) as a premium service, worth a premium price...
reply to Metatron2008
What are the economics of a one time expense versus competitors HFC and incremental FTTN->FTTC->FTTH approach? As cheap as money is, are interest rates killing them vs. competitor future costs (which are subject to material and wage inflation)? The future cost of the terminating equipment is probably cheaper but my guess is the physical install is where the billions went. Will that be cheaper in the future thereby giving cable a future cost advantage when they finally pay to push fiber deep enough for bandwidth parity?
reply to rradina
said by rradina:I think collusion is too strong. As for regulation, I'm not sold on that being the answer. It can get dangerous. I'd suggest that what we need is to enable easier entry into the market by new competitors. Not risk free, but maybe subsidize some of the risk.
So do we need regulations? Seems like collusion.
said by rradina:Simple. Even though most consumers probably won't notice a difference, VZ has done a great job at branding and marketing FiOS as a premium service worth the money...and many consumers buy into that. It's not that far fetched. A lot of consumers easily succumb to good marketing efforts for strong brands. Apple is the expert in this arena. VZ is doing pretty well itself, IMO.
How can both statements be true?