Reviews:
 ·Optimum Online
 ·Verizon Online DSL
| Verizon will weather this storm They market FiOS hard in NYC, and the super polished ads are catchy enough to woo even the dumbest customer in.
I think Moffett's point is that the investment needed to roll this out is initially cost-prohibitive considering the promotional price points available to the consumer, and I suppose he's right to that extent considering the current penny-pincher mentality of everyone hit by the recession.
What Moffett's short-sighted mentality doesn't acknowledge is that consumers want faster and cheaper and don't care who to get that from, and that's Verizon's job to be "it." |
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| said by Network Guy:They market FiOS hard in NYC, and the super polished ads are catchy enough to woo even the dumbest customer in. They market it hard but they don't deploy it hard. When the dumb customer calls in, they find out that they can't get it becuase it's not available in most areas yet. Or rather, areas that actually matter. If Verizon were really serious, they need to start attacking Cablevision where it hurts. Like in the Bronx and Brooklyn. Or if they want to cherry pick like they usually do, they can at least attack Time Warner in areas like Astoria, LIC, Williamsburg, Park Slope, Cobble Hill. |
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| Nah, I think the "advertise before they can get it" approach is exactly what's reeling in the sign-ups. Nothing like, again, stupid people wanting something most people can't get yet. |
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| Does Verizon plan on expanding down south? |
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 jmn1207Premium
join:2000-07-19
Ashburn, VA | reply to Network Guy
said by Network Guy:What Moffett's short-sighted mentality doesn't acknowledge is that consumers want faster and cheaper and don't care who to get that from, and that's Verizon's job to be "it." Many consumers are simply looking for a cheaper alternative, yet they are oftentimes forced into a performance competition with their available choices. The problem is that DSL cannot compete with cable at a similar cost, and POTS is in jeopardy. Roughly the same infrastructure needs to be maintained, yet many people have made the move to some form of VoIP service. Verizon had to do something drastic to keep their future hopeful. |
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Reviews:
·Optimum Online
·Verizon Online DSL
| People don't care that they moved somewhere for telephone service. What people did do is get fed up with padded phone bills for nickel and dime "service" and answered accordingly with their wallets.
Unlike Mr. Wagoneer and GM's SUV cash cow business plan now dried up, Verizon knew this day would come, otherwise this investment wouldn't have taken place.
Only reason customers are "forced" into these performance competitions is exactly why I said before, people want more for the same if not less. |
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 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
| reply to Network Guy
said by Network Guy:What Moffett's short-sighted mentality doesn't acknowledge is that consumers want faster and cheaper and don't care who to get that from, and that's Verizon's job to be "it." It's a huge investment for the handful of people who are willing to pay for "faster." Verizon has spent a few years rolling FiOS now, and I think it shows why most fiber deployment projects fail -- despite having a clearly superior technology, 72% of people who are capable of getting FiOS don't sign up.
The real lifeboat is the 25% who are signing up for FiOS TV and giving VZ a revenue stream they didn't have before the deployment. Faster HSI speeds are good and well, but it's the revenue generated from TV subscriptions that makes this whole venture pay off. |
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jmn1207Premium
join:2000-07-19
Ashburn, VA | reply to Network Guy
said by Network Guy:Only reason customers are "forced" into these performance competitions is exactly why I said before, people want more for the same if not less. I don't think everyone necessarily wants more for less, they just want a cheaper option, even if that means a degradation in performance. How about a $29.99 10/10 FiOS tier, or a $19.99 5/5 tier? The competition is out to give the customers the fastest speed, but the prices have been static or have increased. The cheap alternatives are largely missing from the consumer's choice.
Same goes for TV services. The difference between Comcast's basic tier is not that much lower than their more expensive offerings. Verizon offers $48 essentials or $58 "extreme". Again, many customers are left with either paying a lot, or too much, but there does not seem to be a choice for a cheaper alternative. I think there is a market for it, but with such limited competition, nothing is taking root. |
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 Mr FelFlynn LivesPremium
join:2008-03-17
Louisville, KY | reply to rhapsody
Last time I checked that would be a big no  |
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| reply to NJBoricua75
Southern and Southeast Brooklyn is already wired with FiOS |
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| reply to jmn1207
The lack of a cheaper pricing point is a sign of a lack of competition.
Most annoyingly is how expensive Verizon's tiers are. Cablevision has been offering 30/5 for a while now for $50/month, and Verizon's lowest tier at 15/5 is almost $50/month. |
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| reply to espaeth
Actually if you have a 30% sign-up rate you can make up for the investment in 5 years.
From DSLPrime:
Getting payback from an FTTH deployment in less than five years is virtually impossible without at least 30 percent initial takeup.” He adds, “Five years seems to be the absolute longest amount of time that telco shareholders are willing to invest.”
The pride of Ivan Seidenberg and Xavier Niel has created important exceptions, but otherwise most Western fiber builds have government or electric utility support. They can wait longer for returns. |
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Mark F
join:2007-08-01
Fort Wayne, IN | reply to Network Guy
Here in Indiana, the only FIOS TV ads in the last few months have been the "We Are Here For You" ads, about 16 of them.
Of course, they are here for us, at least untill Frontier takes over. And, perhaps, beyond that, as the ads imply.
Their customer total will drop, but, hopefully, the deal is as good for us as it is for them.
Mark F. |
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| reply to sonicmerlin
said by sonicmerlin:Actually if you have a 30% sign-up rate you can make up for the investment in 5 years. I'd love to see how he came up with that number; that doesn't line up with even the overly optimistic ROI calculations that the companies that produce the access hardware are publishing. Most ROI sheets show a need for a 40-50% adoption rate to break even. |
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