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silbaco
Premium
join:2009-08-03
USA
reply to scaredpoet

Re: Fine is not just $100,000/day

Some people on Fire Island had FiOS it seems, but relatively few. Like everywhere, FiOS penetration is lackluster. It's low even where FiOS is available. Many people do not want to switch over for whatever reason. And it's not just Verizon, but many other providers are in the same boat. I know of several that have had to simply tell people they are terminating DSL, switch to Fiber or have nothing.


MovieLover76

join:2009-09-11
kudos:1
Most customers are slow to switch to a new service, where I live (NJ) many of not most areas around me have FiOS, penetration rates are low because of two factors, one the bad pr verizon got for it's billing issues (which seem to be resolved) and just when people started switching to FiOS in my area they started jacking up rates.
I know lots of people who have the service, but most people see it as the same as cable.

I'm still with FiOS because of the superior internet and PQ, but to most people it's not competitive, they either don't know or care about the higher PQ or more reliable internet and without a price incentive to get them to try out the new service, they are unlikely to try it. Most people need a price incentive to sit around for a few hours while they install the new service. Verizon's mistake was in insisting that it was a premium service and jacking up rates. They made their own problem in order to justify stopping deployment which they did to stop their short term thinking investors from complaining. They really shot themselves in the foot with short term thinking.

sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1
reply to silbaco
said by silbaco:

Some people on Fire Island had FiOS it seems, but relatively few. Like everywhere, FiOS penetration is lackluster. It's low even where FiOS is available. Many people do not want to switch over for whatever reason. And it's not just Verizon, but many other providers are in the same boat. I know of several that have had to simply tell people they are terminating DSL, switch to Fiber or have nothing.

That percentage is actually decent, and undoubtedly the result of Verizon's extremely high prices. Their ARPU for FIOS customers is $141.

elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
reply to silbaco
How many single-person households (~27% of all households) are going to fork out $70+/month for wired internet?

How many families are willing to spend that amount, among other household expenses?

Clearly, not enough for Verizon to pay its bills.

Does the state have the right to force VZ to operate at a loss?
Not since 1865.

But they could conceivably require consumers to buy the product, whether they like it or not.


intok

join:2012-03-15
Wrong, they are gouging on the price, as is the case with all hardwire ISPs.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
Says you. You believe $70/mth for access to the Internet is gouging? What should it be, $19.95?


Doctor Olds
I Need A Remedy For What's Ailing Me.
Premium,VIP
join:2001-04-19
1970 442 W30
kudos:18
said by openbox9:

Says you. You believe $70/mth for access to the Internet is gouging? What should it be, $19.95?

For Fios, no, but for sub 8 Mbps ADSL then yes it is gouging. 8 Mbps ADSL down to 3 Mbps ADSL should be under $40.00 /month.
--
What’s the point of owning a supercar if you can’t scare yourself stupid from time to time?

openbox9
Premium
join:2004-01-26
Germany
kudos:2
Why? What's the cost basis? Profit margin? Why $40/mth? Is that for every ADSL provider, both large and small, or just a handful?

elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
reply to intok
said by intok:

Wrong, they are gouging on the price, as is the case with all hardwire ISPs.

If this were the case, then market forces would have responded, over the past seven years, and challenged Verizon's "monopoly" status.

The price Verizon asks, is indeed, too high for the majority of potential buyers, but that doesn't translate to gouging.


intok

join:2012-03-15
The market forces are price fixing, collusion and extreme greed.

elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
Greed dictates that a competitor would enter the fray and try to take a swath of the "excessive" profits, whatever those are.

That's effectively what the cable broadband industry has done, and the result is we have cheaper and faster service in over 90% of the country.


intok

join:2012-03-15
You don't think they didn't? »Telcos Vastly Overcharge Government for Snooping

They've found the current max they can charge on top of other often required services and fees where they will nickel and dime ever more money.

elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
said by intok:

You don't think they didn't? »Telcos Vastly Overcharge Government for Snooping

They've found the current max they can charge on top of other often required services and fees where they will nickel and dime ever more money.

Those charges aren't necessarily excessive, given the allegedly infrequency of the service orders and the special handling required.