Back in May we noted
how Verizon was doing something interesting in Tampa to try and grab market share from cable: they were offering no-contract FiOS to customers. In other words, users in Florida are now getting the same triple-play pricing as users that used to have to sign contracts -- instead of being penalized roughly $25-$30 extra for no-contract.
As Verizon shifts from expanding FiOS into new markets
to upping subscription rates in already deployed markets, apparently Verizon found that their long-term contracts and ETFs -- which telcos imported over from the wireless sector -- was a deterrent to many customers moving over from cable.
Verizon has reached out to us to note that they're now taking this idea nationally in the hopes of ramping up subscriber numbers. "Basically we are taking the program in Florida you wrote about recently and going national with it," Verizon's Robert Elek tells Broadband Reports. "The name change – from Verizon’s FiOS Service Commitment to FiOS Worry Free Guarantee – is really the only change from what we’ve been doing in Florida," he says.
According to Elek, the results in Florida and Pennsylvania "exceeded what the company was expecting," so going national "seems like the natural next step."
As part of the deal, users who don't sign a long-term contract won't have to pay more -- and they'll receive a guarantee of their initial price for one year. They also won't have to pay an early termination fee (which was raised to $360 earlier this year
). After Verizon's announcement of the new strategy in Tampa, cable competitors like Bright House Communications accused the telco of simply copying a practice cable operators have been using for years
Users interested in the whole Verizon release can find it here