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story category Verizon Raising FiOS Prices Again Soon
Sometime this quarter by an unspecified amount...
(old news - 01:45PM Monday Apr 28 2008)
tags: prices · Fiber · business · telco · Verizon FIOS
Discussing this morning's earnings, Verizon CFO Doreen Toben told investors, analysts and reporters on a conference call today that FiOS users can expect a new round of price hikes this quarter. "You may recall we increased prices for selected products in the first quarter last year," said Toben while discussing FiOS (see transcript (pdf)). "We anticipate increasing prices once again in certain products and bundles in the second quarter this year." Which FiOS products and bundles was not specified.

Verizon has consistently nudged up the price of FiOS broadband, especially for customers who refuse to sign up for long term contracts or add additional bundled services. Standalone broadband service jumped $5 in many markets last fall, while double and triple play bundles have consistently increased anywhere from $5 to $20 since FiOS was launched (depending on the product market).

For instance, users who bundle Verizon phone, FiOS 5Mbps/2Mbps and FiOS TV Premier (with two-year commitment) have seen that price increase from $104.98 to $115.98 in many markets. Users who bundle the company's 5Mbps/2Mbps FiOS service and FiOS TV Premier have seen the double play bundle price rise from $85.98 to $101.97 in many markets. The FiOS 20Mbps/20Mbps + FiOS TV Premier bundle has jumped from $107.98 to $123.97.

Given that most of their cable competitors continue to raise rates, Verizon has also found they've been able to raise TV rates in kind (as much as 12% in some instances). Last year alone, Verizon increased FiOSTV prices by 7%, added a new $75 disconnect fee, and bumped the price for their high-definition DVR rental from $12.99 to $15.99 per month in many markets.

Related:
  1. No, Your FiOS Rates Aren't Rising
  2. Verizon Confusing FiOS Customers Under Contract
  3. 50Mbps, 20/20Mbps FiOS Tiers Hit All Markets
  4. Verizon Reports Largest FiOS Additions To Date
  5. Verizon Announces New FiOS Tiers, Promotions
  6. Verizon: LTE iPhone 'Apple's Decision'
  7. Verizon Begins FiOS Upgrades In DC
  8. Verizon's FioS Deployment Enters A New Chapter
Forums » Verizon Raising FiOS Prices Again Soon
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matcarl

join:2007-03-09
Franklin Square, NY

Raising Rates

They just raised the rates as of January of this year, now three months later they are going up again?

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: Raising Rates

Digital OTA looks better and better to me all the time.
So far, I've got 19 channels OTA on a pair of rabbit ears (50 dB gain though). Only problem is that I don't get Fox or CBS.
--
Canada = Hollywood North

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

Re: Raising Rates

said by en102 See Profile :

Digital OTA looks better and better to me all the time.
So far, I've got 19 channels OTA on a pair of rabbit ears (50 dB gain though). Only problem is that I don't get Fox or CBS.
Well, get as much enjoyment out of it as you can now! The clock is ticking, and in less than 9 months it wont work anymore (Feb 2009 to be exact).
--
Весна прибыла

Fubar

join:2001-02-20
Phoenix, AZ

Re: Raising Rates

said by wifi4milez See Profile :

said by en102 See Profile :

Digital OTA looks better and better to me all the time.
So far, I've got 19 channels OTA on a pair of rabbit ears (50 dB gain though). Only problem is that I don't get Fox or CBS.
Well, get as much enjoyment out of it as you can now! The clock is ticking, and in less than 9 months it wont work anymore (Feb 2009 to be exact).
Analog is going away... Digital OTA is here to stay

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

Re: Raising Rates

said by Fubar See Profile :

said by wifi4milez See Profile :

said by en102 See Profile :

Digital OTA looks better and better to me all the time.
So far, I've got 19 channels OTA on a pair of rabbit ears (50 dB gain though). Only problem is that I don't get Fox or CBS.
Well, get as much enjoyment out of it as you can now! The clock is ticking, and in less than 9 months it wont work anymore (Feb 2009 to be exact).
Analog is going away... Digital OTA is here to stay
Thats cool. I didnt even know there were two types of OTA!
--
Весна прибыла

JPuppy
Java Heathen
Premium
join:2002-11-24
Honesdale, PA
clubs:

said by wifi4milez See Profile :

said by en102 See Profile :

Digital OTA looks better and better to me all the time.

Well, get as much enjoyment out of it as you can now! The clock is ticking, and in less than 9 months it wont work anymore (Feb 2009 to be exact).
He said digital OTA (ATSC), not analog (NTSC).
--
Only through the criticizing of others can we learn to love ourselves.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
MAke that... I get 19 HD OTA channels with rabbit ears... only about 5 analog OTA
--
Canada = Hollywood North
BosstonesOwn

join:2002-12-15
Everett, MA
clubs:
·Comcast
·Comcast Formerly ..

Yeah well programming costs can only be absorbed for so long before it has to be passed on.

Don't really know who u can blame for this.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
UncleDirtNap

join:2006-08-26
Pittsburgh, PA
·Verizon FIOS

Re: Raising Rates

>Yeah well programming costs can only be absorbed for so long >before it has to be passed on.

Ahh blam Congress, especially the current crop of Democrat leaders who are raking in huge amounts of money from media and content providers for continuing to block efforts to end forced bundling.

Verizon and other "cable" operators are still being forced to carry channels, and pay the increasing costs, that nobody wants in order to get access to those we do and their competition like Comcast, Time Warner and other "cable" operators that have ownerships stakes in the content providing companies are reaping the benefits.

Want lower rates and more options write your representative and demand an end to forced bundling.
majortom64

join:2004-09-12
Skokie, IL

Re: Raising Rates

said by UncleDirtNap See Profile :

>Want lower rates and more options write your representative and demand an end to forced bundling.
Moving to a la carte channel selection will not decrease bills, it will just decrease choice. ESPN (one of the most expensive basic tier channels costs MSOs about $2-$2.50 per subscriber per month). Smaller channels that are bundled with that tier usually get under $0.30 per subscriber per month.

Consider a system with 100,000 subscribers. ESPN earns $200,000 (low end estimate) and small channels earn $30,000 a month. If cable companies are forced to offer a la carte pricing and 50% of subscribers decided that they did not want to pay for ESPN, Disney would either have to make less money (cutting all other costs of running this network) or raise its price. Given that those who wanted to keep ESPN are probably somewhat less price sensitive, doubling their price to make up their revenue shortfall is Disney's most likely response. That means, those subscribers who continue to receive ESPN, will pay more, either raising their overall bill or causing them to drop other channels to make up for it.

Smaller channels will be even more drastically affected. If they are not getting bundled customers their prices will have to increase much more and many will just cease to exist.

/carmi
Corydon
Cultivant son jardin
Premium
join:2008-02-18
Denver, CO
clubs:
·Comcast

said by matcarl See Profile :

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.
--
My opinions are my own. No-one else would want them!
MrSpock29

join:2008-02-09
Hammonton, NJ


1 edit

Re: Raising Rates

said by Corydon See Profile :

said by matcarl See Profile :

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.
Further, with the stock up over $1 today, Wall Street is making their opinion known, although some of that is undoubtedly due to the wireless side.
Corydon
Cultivant son jardin
Premium
join:2008-02-18
Denver, CO
clubs:
·Comcast

Re: Raising Rates

I'm sure they've figured out ways to roll out their service for less and less as time has gone by.

It also helps that population density in Verizon's footprint tends to be fairly high.

On the other hand, the fact that no other telco in the US has shown much interest in the FTTH model shows that there are still considerable risks to the business model (though on the other end, Qwest shows the risks of doing nothing at all).
--
My opinions are my own. No-one else would want them!

Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
Sweden
·Verizon FIOS
·Optimum Online

said by Corydon See Profile :

said by matcarl See Profile :

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.
It used to cost around $1500-3000/subscriber when they first started a few years ago... Recent estimates put the figure at $600-1000/subscriber passed.

-Tzale
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html
nasadude

join:2001-10-05
Rockville, MD
·Comcast

Re: Raising Rates

and it will continue to get cheaper and cheaper to connect a subscriber, while the price for the service will get higher and higher.

wake up everyone, we are in a monopoly/duopoly situation; PRICES WILL NEVER GO DOWN AND THEY WILL ONLY BE STABLE OVER SHORT PERIODS OF TIME (3-6 months).

without competition, prices only go one way...UP

Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
Sweden
·Verizon FIOS
·Optimum Online


1 edit

Re: Raising Rates

said by nasadude See Profile :

and it will continue to get cheaper and cheaper to connect a subscriber, while the price for the service will get higher and higher.

wake up everyone, we are in a monopoly/duopoly situation; PRICES WILL NEVER GO DOWN AND THEY WILL ONLY BE STABLE OVER SHORT PERIODS OF TIME (3-6 months).

without competition, prices only go one way...UP
Of course it is a semi-monopoly... Verizon has the best service available, they KNOW they can charge for it... However, I have seen the bandwidth / number of features increase in my area due to Verizon forcing the local cable co to really step up its game...

There IS competition, but just HOW MUCH competition is required to keep prices stable? I think it is a false hope to think more competition will keep prices lower... All these companies will just continue to raise prices when one takes the first jump.

-Tzale
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html
cwh

join:2006-05-14
San Antonio, TX

Re: Raising Rates

2 wire line tv, 2 sat tv and free OTA is probably about as much competition as you are going to get in a market. That is 5 options on where to spend your money. Not bad options if you ask me.

Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
Sweden
·Verizon FIOS
·Optimum Online

Re: Raising Rates

said by cwh See Profile :

2 wire line tv, 2 sat tv and free OTA is probably about as much competition as you are going to get in a market. That is 5 options on where to spend your money. Not bad options if you ask me.
I agree...
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html

chakey
Premium
join:2004-06-14
Gladstone, NJ
clubs:

um....

And name me one cable company that does NOT raise prices at least once a year. Par for the course.

matcarl

join:2007-03-09
Franklin Square, NY

Re: um....

said by chakey See Profile :

And name me one cable company that does NOT raise prices at least once a year. Par for the course.
Once a year is expected, but they just raised them in January!!

GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Re: um....

said by matcarl See Profile :

said by chakey See Profile :

And name me one cable company that does NOT raise prices at least once a year. Par for the course.
Once a year is expected, but they just raised them in January!!
And this is most likely because they were selling the service initially at a loss to garner new customers. Once they have you, the rates start going up. Only new initial customers will still get the best rates for a year or two.
--
My BLOG .. .. Internet News .. .. My Web Page

chakey
Premium
join:2004-06-14
Gladstone, NJ
clubs:
Oh! I read it as they were increasing rates for the other products that they did NOT increase rates for. If they are raising rates for the same products after just 3 months--that is too much!
satellite68

join:2007-04-11
Louisville, KY

said by chakey See Profile :

And name me one cable company that does NOT raise prices at least once a year. Par for the course.
Insight does not raise prices once a year.

TDOG

join:2000-04-30
Louisville, KY

1 edit

Re: um....

I agree,My Insight cable bill has not changed 1 penny and I have had since Oct. 2006

TDOG
satellite68

join:2007-04-11
Louisville, KY
Insight has not raised its price since I started with them, more than three years ago.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME

AT&T hasn't raised its rates...
No wait, their price is artificailly 'high', and now they've removed their discounts (same thing, IMO!)

DirecTv has even increased my 'plus' package (circa 2003) from $54.99 for 3 sets to $63.99 for 3 sets over the past 12 months.
--
Canada = Hollywood North

kfsutops
Premium
join:2002-08-19
Brandon, FL
clubs:
Brighthouse hasn't for me. But, they are fighting Verizon here in our market. Verizon is doing damage. Slowly buy surely.
--
"There are no stupid questions, but there are a LOT of inquisitive idiots"

mod_wastrel

join:2008-03-28
·magicjack.com

It's really not a question of rates going up,

it's only a question of how much and how often.

I mean, how else are pro athletes going to get their multi-million dollar/year contracts? (That's a trick question. Everything we buy costs more so that Joe Blow can get $20 million this year instead of only $10 million*.)

*slight exaggeration (but only a slight one)

KYL

join:2007-03-07
Clackamas, OR

Verizowned

And when was the last time Comcast raised their Internet prices?

Oh wait.

Squirrelly

join:2000-10-24
Harrisburg, PA

Re: Verizowned

I was going to switch to fios TV when is comes to my area in June but now I am going to stay with DISH

TechieZero
Tools Are Using Me
Premium
join:2002-01-25
Wesley Chapel, FL

Re: Verizowned

I was thinking of going to Verizon video from DTV in the attempt to save $$$. I guess that isn't happening.

macrospect
All The Little Stuff
Premium
join:2005-08-25
Doylestown, PA
·Comcast

said by KYL See Profile :

And when was the last time Comcast raised their Internet prices?

Oh wait.
The perfect quote for the perfect argument! I guess FiOS is beginning to not looks so superior when it comes to price, against Comcast that is!

Cabal
Premium
join:2007-01-21
Boston, MA
My Comcast HSI has been $42.95 since 2002. Haven't found a deal that's beat that, yet.

Gary A

join:2008-03-02
Odessa, FL

Safe For Now

This is why I signed a 2-year agreement! No regrets.

kyler13
Is your fiber grounded?

join:2006-12-12
Arnold, MD

Re: Safe For Now

said by Gary A See Profile :

This is why I signed a 2-year agreement! No regrets.
That just postpones the inevitable.

Bobcat
Volvo sucks donkey balls
Premium
join:2001-02-04
Bedminster, NJ

Biased reporting

Cablevision raised my rate by 6.4% this year, but I don't recall seeing that as front-page news.

bobjohnson
Premium
join:2007-02-03
Titusville, FL
·Sprint Mobile Broa..
·RoadRunner Cable

Re: Biased reporting

said by Bobcat See Profile :

Cablevision raised my rate by 6.4% this year, but I don't recall seeing that as front-page news.
Isn't that the truth... My January '08 bright house bill was 138.94 before taxes and my February '08 bill was 154.84 before taxes and I havent changed anything since 2006..

RickNY
Premium
join:2000-11-02
New York
Oh, it was there. Let me remind you:
»Cablevision Rate Hikes

blah blah

@verizon.net
Every cable companies that compete in prices get dogged so whats the big deal here lol.

Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
Sweden
·Verizon FIOS
·Optimum Online

said by Bobcat See Profile :

Cablevision raised my rate by 6.4% this year, but I don't recall seeing that as front-page news.
What else is new? We all know Karl has it out for American broadband.. You know.... It is controversial and it increases site activity, which is a good thing! Otherwise he wouldn't have a job.
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html

Anonymous_
Anonymous
Premium
join:2004-06-21
127.0.0.1
clubs:
·RoadRunner Cable
·Time Warner Cable
·Time Warner VOIP

said by Bobcat See Profile :

Cablevision raised my rate by 6.4% this year, but I don't recall seeing that as front-page news.
he is payed by Verizon so he can build he new quad core

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
·AT&T DSL Service
·Cox HSI
·AT&T Southwest


1 edit

Now we see why the Telcos want into the TV business

... Their sheer unbridled greed was making them jealous.

All those people looking forward to FIOS are going to find it's going to end up being MORE expensive then DSL + VOIP + Satellite, me thinks. Even Uverse, AT&T's not nearly as good as FIOS on the cheap, is probably going to be too expensive.

See this is the problem with the lack of competition. They don't really compete with each other at all. They just set the absolute highest prices they think the market will bear, and then when one moves up, the other follows.

See 9 replies to this post

BF69

join:2004-07-28
Camden, TN

everyone raises prices

Charter has raised prices 3 times in the last 2 years and also reduced the amount of channels you get.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: everyone raises prices

Even DISH went up for me $3....

However, they gave me every HD channel they have now, too, so yeah a price raise, but I also got increased service.... and I could downgrade if I wished.

bobjohnson
Premium
join:2007-02-03
Titusville, FL
·Sprint Mobile Broa..
·RoadRunner Cable

said by BF69 See Profile :

Charter has raised prices 3 times in the last 2 years and also reduced the amount of channels you get.
At least some companies that are charging more and more each year are giving you a little more for the extra money...

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

said by BF69 See Profile :

Charter has raised prices 3 times in the last 2 years and also reduced the amount of channels you get.
Charter wants to maintain itself as bottomfeeder cable company.
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee

pokesph
It Is Almost Fast
Premium
join:2001-06-25
Sacramento, CA
clubs:
·Comcast

costs..

I sure miss the days when the various cable networks PAID the cable tv providers to carry their programing. (yet even then, 'cable' TV was way overpriced.
When will the increases (read that as GREED) ever stop?

oh well.. looks like pretty soon there will be no real competition or alt sources, so pay up or have not.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: costs..

said by pokesph See Profile :

pay up or have not.
i'll have not, thank you.

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI

They must be selling too fast

Business 101. If your selling too fast, your prices are too low. They must be raising rates to throttle back deployment. No?
MrSpock29

join:2008-02-09
Hammonton, NJ

Re: They must be selling too fast

said by dnoyeB See Profile :

Business 101. If your selling too fast, your prices are too low. They must be raising rates to throttle back deployment. No?
Why would any company want to throttle back deployment of their product or service?

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI

Re: They must be selling too fast

I'm being a bit tongue-n-cheek. Self-interested CEOs raise rates to get a quick profit bump. This actually causes a long term profit loss since the side effect is to throttle back acceptance. Of course if you actually can't deploy fast enough to keep up with demand, then its a proper rate hike.
--
dnoyeB
"Then said I, Wisdom [is] better than strength: nevertheless the poor man's wisdom [is] despised, and his words are not heard. " Ecclesiastes 9:16

ispgeek
Premium
join:2006-02-16
Saint Petersburg, FL

said by dnoyeB See Profile :

Business 101. If your selling too fast, your prices are too low. They must be raising rates to throttle back deployment. No?
You really should warn people before posting such things....god I laughed so hard almost crapped myself. Bottom line...Verizon is desperate to show a profit on FIOS and in true telco fashion is doing what they do best...screwing the consumer in an effort to meet that goal.

Keep it up Verizon...at this rate cable looks better and better each day. Just ask all those ticked off customers in the Tampa Bay region.

Kylemaul
Lovin' My Firefox 1.5.x
Premium
join:2001-03-30
North Port, FL
clubs:

a post subject

This is why I locked my intro rate in for 2 years. They can still raise it, but then I can tell them where to stick it.
Mr Matt

join:2008-01-29
Eustis, FL
·Comcast
·Embarq


1 edit

Another deceitful practice

Let see if I understand correctly. A customer installed Verizon FiOS Six Months ago and there is no disconnect fee stated in the TOS. Today the customer learns that they must move and therefore places a disconnect order. Verizon feels it is ethical and moral to charge the customer a disconnect fee of $75.00 plus tax. I say Bull Feces. It looks like it is time for another class action suite against Verizon for deceptive business practices. On the other hand if the fee is clearly disclosed and only applies to customers that have installed service after the date the fee is implemented, that would be legal. In reality if Verizon wants to increase the installation cost then they should raise the installation cost not charge a disconnect fee. They do not because a higher installation fee might discourage customers from moving to FiOS. This trick increases the installation fee for a Verizon FiOS customer moving to a different service provider. Add a $75.00 disconnect fee to the cost of installation of the new service and the competitor is placed at a disadvantage.

See 6 replies to this post
Scragg

join:2007-09-01
Virginia Beach, VA

lower rates

Perfect time for the cable company to bring in a lower rate bundled digital service if you ask me.
tmc8080

join:2004-04-24
Floral Park, NY

smell what verizon's been cookin...

well, this does not bode well for customers out of or nearly out of contract. they will have to weigh their options and consider signing up to the competition. the wireless business is doing gangbusters because many of you are always on the go to one of your three jobs to help pay the gasoline bill and everything else that gets jacked up because of it. it's time for a politician lynching for voting their way into this mess.

this is disappointing though to hear that they couldn't wait until next year to deliver the bad news. IMHO, this should cause customers pause before giving over their hard earned money.. you see, we have distinctly dissonant forces heading for a collision course...

1. Rising energy prices
2. A business model designed on the concept of 'unlimited all you can eat service'
3. A company who really doesn't care if this forces some customers to cancel, who really can't afford it.

What I really want to know is how much longer can Cablevision keep doing it's $29.95 triple play promotion with 2 year no contract lock-in's for?

Surely with this news, Cablevision must be losing money on that deal...
Skippy25

join:2000-09-13
Hazelwood, MO

Re: smell what verizon's been cookin...

On services like this it cost companies virtually nothing to add another subscriber as most cost are fixed whether they have 1 or 1000 people.

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
·Comcast

Re: smell what verizon's been cookin...

said by Skippy25 See Profile :

On services like this it cost companies virtually nothing to add another subscriber as most cost are fixed whether they have 1 or 1000 people.
Wrong! while the "fibering" of an area is a big expense/investment, the advantages to the telco end will eventually cover much of that cost, however individual installations are around $1000 extra (average, started above $2K now down near $600) which they must pay off over time, (sooner is better, when you consider interest/time value of capital) making it cheap to start with gets you in the door and avoiding churn is necessary, but realistically prices will have to rise significantly very soon.
They can't afford the 3 month or even 1 year customer, what they need is a majority of longterm/"as long as we live here" customers at a rate above current cost+long term plant cost+PROFIT.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: smell what verizon's been cookin...

Sorry I wasn't clear in my post as I was not referring to FIOS specifically. There is an added cost for putting someone on FIOS and that cost is dropping. Eventually it will be very cheap just like it is for cable, wireless, and telcom (nonFIOS).

Beyond the last mile, a vast majority of their "cost" associated with customers is a fixed expense.

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
·Comcast

said by tmc8080 See Profile :

well, this does not bode well for customers out of or nearly out of contract.
I think that's the point of announcing it in advance, to soften you up for a extended contract at a small increase vs the risk of constant increases.
Because the install cost is so high, avoiding a high turnover is very important to them at this point. (relatively small customer base to average it out over)
SKYWARP

join:2005-02-02
Portland, OR

This is a business. . .

They have to keep investors happy, they have to make money. This is not cheap stuff they're doing.

TechieZero
Tools Are Using Me
Premium
join:2002-01-25
Wesley Chapel, FL

Re: This is a business. . .

But but but internet should be FREE!!! Think of the children!!!

BeeF JerkY

@verizon.net

Yup

Yup, I'm leaving FiOS in May before the rate increase. Going back to Comcast. Never thought that would happen but I'm getting a cheaper price plus I used to have them before and they were just fine.

toolazytologin

@verizon.net

bigger picture

No one seems to understand the bigger scheme of things as to why prices, especially for telco and cable companies increase. GAS PRICES! Verizon has one of the largest fleets in America, as Gas prices increase that squeezes Verizon's pocket the same way it squeezes yours and mine. Just like staples such as rice and corn are increasing in price, Verizon will pass off its increased fuel costs to the consumer, as will any other company affected by gas prices. It now costs me $60 to fill my 17 gallon tank. How much do you think it costs Verizon to fill 40-60 gallon tanks times tens of thousands of vehicles. If they just eat the cost, that will put them in the red, Wall Street will back off, FiOS deployment will stop, and more areas will be Fairpointed until Verizon is a wireless company only.

DMNTD

@sbcglobal.net

Re: bigger picture

So obviously gas is not going to get any cheaper...looks like something is going to break, have to even. Although I don't buy it..greed is greed.

DMNTD

@sbcglobal.net

what it is...

"they have to make money"..WRONG..they are not making money they are getting **RICH**, ROFL what is it with you people...making money and blatantly getting wealthy are 2 different things call it what it IS!

Noah Vail
Premium
join:2004-12-10
Lorton, VA
·RoadRunner Cable

Re: what it is...

They are not getting "rich" off of FiOS; yet.

Verizon partially financed (and placated the stockholders) by revoking the retirement packages of middle and upper middle management, by any means possible (firing, buy outs, job shifting).

It wasn't THAT much of a cash cow, compared to the daunting cost of FiOS infrastructure development and deployment. FiOS not only had to exist, it had to be available Fast. Compared to the rollout of the POTS system (still being deployed, 100 years later) this is lightning quick. It was 7 years between Lucent's imminent release of ADSL and anything like availability.

All this, in an effort to leap frog Docsis 3 and it's any-day-now delivery (consisting of shaping, caps and 15% of the promised speed). It will take 2 or 3 major technological advances to get anywhere near FTTH.

The FiOS rollout is actually impressive. If for no other reason than it actually IS deploying. 15 years ago, 99% of our High Speed Data promises evaporated before the ink dried on the media release. Those that actually saw any subscribers, never left the beta stage (anyone remember GTE Data Services; the pre-Verizon cable co.?)

All in all, this is not bad. And while the eligible areas wait for FiOS, we have something other than dial-up to cling to.

NV
--
Abortion: A Republican Plot to Thin the Liberal Herd.

kyler13
Is your fiber grounded?

join:2006-12-12
Arnold, MD

Wow

This just sealed the deal for me. I'm dropping to 5/2 internet and nixing a switch to FIOS TV for at least the next year. Less HD, less VOD offerings, an inferior guide for DVR? Sorta negates the better quality. And to top it off, they want to charge more? Man, I love the idea of FIOS TV but Verizon seems to care little about competing.
Warez_Zealot
Rural land of the rising sun

join:2006-04-19
japan

Verizon, let the rates be..

When I find myself in times of trouble, mother Mary comes to me,
speaking words of wisdom, let it be.
And in my hour of darkness she is standing right in front of me,
speaking words of wisdom, let it be.

Let it be, let it be, let it be, let it be.
Whisper words of wisdom, let it be.

And when the broken hearted people living in the world agree,
there will be an answer, let it be.
For though they may be parted there is still a chance that they will see,
there will be an answer. let it be.

Let it be, let it be, .....

And when the night is cloudy, there is still a light, that shines on me,
shine until tomorrow, let it be.
I wake up to the sound of music, mother Mary comes to me,
speaking words of wisdom, let it be.

Let it be, let it be, .....
--
"You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it."-Malcolm X

"Patriotism is the virtue of the vicious."-Oscar Wilde

"Only a fool gives up freedom for security"-Unknown
stridr69

join:2003-05-19
San Luis Obispo, CA

Re: Verizon, let the rates be..

So...What's your point?
When THAT song was written, there were far more important matters going on-like the "police action" in Vietnam. I can quote Marvin Gaye's(spelling)song "What's going on" as well, and far more appropriate as far as this thread goes.
Using '60's Vietnam War protest song's doesn't cut it for Verizon's rate increase. And, since your from the providence of Ontario, Canada you REALLY don't have a point. Better you pitch you bitch to Bell Canada, or Telus.
And yes, I've kept my draft card-classified 1H. Yep, stayed in college taking Basket Weaving courses at Stanford University.
If you don't like Verizon's FIOS, then LEAVE!!
Jeeze!

Warez_Zealot
Rural land of the rising sun

join:2006-04-19
japan

Folks, Id like to sing a song about the American Dream
About me, about you
About the way our American hearts beat way down in the bottom of our chests
About that special feeling we get in the cockles of our hearts
Maybe below the cockles,
Maybe in the sub cockle area,
Maybe in the liver, maybe in the kidneys,
Maybe even in the colon, we dont know

Im just a regular Joe, with a regular job
Im your average white, suburbanized slob
I like football and porno and books about war
I got an average house, with a nice hardwood floor
My wife and my job, my kids and my car
My feet on my table, and a Cuban cigar

But sometimes that just aint enough to keep a man like me interested
(oh no, no way, uh uh)
No I gotta go out and have fun at someone elses expense
(woah yeah, yeah yeah, yeah yeah yeah)
I drive really slow in the ultra fast lane
While people behind me are going insane

Im an asshole (hes an asshole,what an asshole)
Im an asshole (hes an asshole, such an asshole)

I use public toilets and I piss on the seat
I walk around in the summer time saying "how about this heat?"

Im an asshole (hes an asshole,what an asshole)
Im an asshole (hes the worlds biggest asshole)

Sometimes I park in handicapped spaces
While handicapped people make handicapped faces

Im an asshole (hes an asshole,what an asshole)
Im an asshole (hes a real fucking asshole)

Maybe I shouldnt be singing this song
Ranting and raving and carrying on
Maybe theyre right when they tell me Im wrong...
Nah

Im an asshole (hes an asshole,what an asshole)
Im an asshole (hes the worlds biggest asshole)

You know what Im gonna do
Im gonna get myself a 1967 Cadillac Eldorado convertible
Hot pink, with whale skin hubcaps
And all leather cow interior
And big brown baby seal eyes for head lights (yeah)
And Im gonna drive in that baby at 115 miles per hour
Gettin' 1 mile per gallon,
Sucking down Quarter Pounder cheeseburgers from McDonalds
In the old fashioned non-biodegradable styrofoam containers
And when Im done sucking down those greeseball burgers
Im gonna wipe my mouth with the American flag
And then Im gonna toss the styrofoam containers right out the side
And there aint a goddamn thing anybody can do about it
You know why, because weve got the bombs, thats why
2 words, nuclear fucking weapons, OK?
Russia, Germany, Romania, they can have all the democracy they want
They can have a big democracy cakewalk
Right through the middle of Tiananmen Square
and it wont make a lick of difference
Because weve got the bombs, OK?
John Wayne's not dead, hes frozen, and as soon as we find a cure for cancer
Were gonna thaw out the duke and hes gonna be pretty pissed off
You know why,
Have you ever taken a cold shower, well multiply that by 15 million times
Thats how pissed off the dukes gonna be!
I'm gonna get the Duke, and John Cassavetes,
and Lee Marvin, and Sam Peckinpah, and a case of whiskey,
and drive down to Texas and say.....

(Hey! You know, you really are an asshole!)
Why don't you just shut up and sing the song, pal?
Im an asshole (hes an asshole.what an asshole)
Im an asshole (hes the worlds biggest asshole)

A-S-S-H-O-L-E
Everybody
A-S-S-H-O-L-E

Im an asshole and Im proud of it
--
"You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it."-Malcolm X

"Patriotism is the virtue of the vicious."-Oscar Wilde

"Only a fool gives up freedom for security"-Unknown
Forums » Verizon Raising FiOS Prices Again Soonpage: 1 · 2


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