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Matt3
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Business Reason?

Verizon isn't doing this out of the goodness of their hearts. There has to be a business justification somewhere for this. Does anyone have any ideas?
--
Pretty Fly for a White Guy™



JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD

In the FiOS forum, rebus9 See Profile made an observation:

said by rebus9 See Profile, »Re: NEW ~ FiOS INTERNET PREMIUM SPEED PACKAGES :
...Seriously, I'm betting that VZ will become the neighborhood crack dealer, in a manner of speaking. Get you "hooked bad", then jack up the price.
Who knows? To me, it doesn't much matter. I'll be delighted to have it.


Matt3
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

said by JTRockville:

In the FiOS forum, rebus9 See Profile made an observation:

said by rebus9 See Profile, »Re: NEW ~ FiOS INTERNET PREMIUM SPEED PACKAGES :
...Seriously, I'm betting that VZ will become the neighborhood crack dealer, in a manner of speaking. Get you "hooked bad", then jack up the price.
Who knows? To me, it doesn't much matter. I'll be delighted to have it.
Which is why I asked the question ... because I am curious for the business knowledgeable folks to chime in.

I'm not knocking it and I hope my provider steps up and offers symmetrical speeds over my connection ... I'm just curious why. There's got to be a business reason for it.

I'm not buying that it'll make a bit of difference to the average user, they don't care or know what upstream is really ... not when you try to explain the difference in 5Mbps and 20Mbps.

I wonder if they are perhaps hoping to exploit the "geek word of mouth effect", whereas the folks who would be knowledgeable about this type of thing will recommend the service, even if it's at a slower speed ... I know I recommend products I use and think work well. My neighbor had an orange fiber cable sticking out of her backyard for 3 months before her and I started talking about it and I got her to switch away from Road Runner.
--
Pretty Fly for a White Guy™


JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD

I had a similar experience with quite a few neighbors, long before this annoucement. But this is so far above what's available elsewhere (around here anyway), there's got to be more to it than just "geek word of mouth".

Maybe they just want to kick the cableco's while they're down.

Would be nice to hear something from the suits though.



buckingham
Buckingham Pa
Premium
join:2005-07-17
Buckingham, PA
Reviews:
·Verizon FiOS

1 edit
reply to Matt3

said by Matt3:

Verizon isn't doing this out of the goodness of their hearts. There has to be a business justification somewhere for this. Does anyone have any ideas?
The only thing that jumps out at me is that it's a definite competitive differentiator...symetrical speeds are darn unusual in the consumer (and even the business) broadband market in most areas. And there actually are many of us would would appreciate and "up" that is more like the "down" for the kind of things we do...like work from home, which is a two-way situation. And given that it's a lot easier to do with the passive fiber network than with other technologies...sounds like a nice play to me.

Ahrenl

join:2004-10-26
North Andover, MA

Not to mention more "up" makes your "down" more available.


paulme

join:2007-11-06
Kirkland, WA
reply to JTRockville

said by JTRockville:

Maybe they just want to kick the cableco's while they're down.
This is what I really think it is. Comcast around here has been putting up billboards saying how they've always had a fiber network (they don't say where, as in the backend severs...). So I'm thinking that Verizon is making a play for the cable customers before cable can offer a competing line of products.

Ulmo

join:2005-09-22
Aptos, CA
reply to Matt3

said by Matt3:

Verizon isn't doing this out of the goodness of their hearts. There has to be a business justification somewhere for this. Does anyone have any ideas?
Yeah. Reading DSLR, I saw plenty of people say they were *switching* service providers because of this new offer, and a fair number more upgrading service to this new offer for a slightly to much higher price.

So, my idea is that they are trying to edge up their market share for passed homes, so that their bottom line will improve a bit and their shareholders will see improvement in numbers that portend better returns.

We'll have to see if this translates into better business for them. So far, I don't see why not, but reading a few DSLR posts isn't a statistically accurate sample.


KoolMoe
Aw Man
Premium
join:2001-02-14
Annapolis, MD
Reviews:
·Verizon FiOS
reply to Matt3

They've made the investment, the network can handle it, they gotta try sometime....and once we're hooked on the speed, you know prices aren't going to come down. Maybe good ole competition will help consumer pricing but, really, when will there any truly competitive alternative to Fios in most areas?

"here, try this. It's real cheap and lots of fun. If you want more, I'll be around, but bring a larger stack..."
KM