said by Corydon:said by matcarl:They just raised the rates as of January of this year, now three months later they are going up again?
No big surprise. Someone has to pay for all of that fiber. There was just an article about how it costs UTOPIA about $2300 to connect a subscriber. I'm sure Verizon's costs are similar.
So there's no way that they're making their investment back fast enough to please Wall Street if your customers are only paying $100 a month. That's two years to recover the cost to connect them and you haven't paid for any programming costs, HSI connectivity or telephony back-end.
This is why FiOS is considered a gamble, and why Verizon may well end up losing their shirt.
That opinion was once widely held a few years ago, when fios was first being rolled out, but it is not a widely shared opinion now. VZ (and all telcos) were always going to lose reg. phone customers, and they need to compete with cable. Now they can, with better infrastructure than cable. Considering their earnings were over a billion dollars this quarter alone, that is a long stretch from losing their shirt.
