Frontier FiOS TV Customers See Huge Rate Hike
As Frontier says goodbye to the TV business...
by Karl Bode 09:33AM Wednesday Jan 05 2011 Tipped by darcilicious
When Frontier acquired Verizon's unwanted networks across fourteen states, the deal included about 100,000 FiOS customers, who'll be getting a new post-acquisition present for the new year. The Oregonian
is the first to report that Frontier will be increasing the cost of TV service for these acquired customers by as much as 46%. For example, the the 220-channel standard package will rise from $65 to $95 a month. Raising rates even beyond local cable competition is essentially an admission that the company wants nothing to do with the TV business and hopes to just milk these customers for a little while before they flee. Yet Frontier tells the Oregonian that they're "committed to" FiOS:
"Part of the challenge we have, compared to other providers, is that our footprint is so small," said Frontier spokeswoman Stephanie Beasly. "They're able to spread (the cost of programming) out over a much larger customer footprint."...."It (FiOS) is a service that we are committed to, so we are looking at opportunities and options to ensure that our customers get the best product," she said.
Frontier may be "committed to" FiOS, but they're certainly not committed to FiOS TV. The company tells the Seattle Times
they'll be trying to offload many of these customers to DirecTV by offering a free year of satellite TV. It seems like if Frontier wanted out of the TV business because they can't afford programming (which may prove to be a good idea if Internet video explodes), they should just get out of the TV business. Using ridiculous price hikes as a way to milk last second revenue out of these customers before driving them to DirecTV -- seems somewhat punitive. You also have to wonder why Frontier's inability to support TV service wasn't more fully considered before the deal was approved by regulators.