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Verizon: Cord Cutting Real, 40% Take 50 Mbps or Faster
by Karl Bode 02:29PM Wednesday Nov 13 2013
Verizon has ceased deploying FiOS to new areas (unless you're in a major city that's part of a previous franchise obligation), with their focus being on converting "stubborn" DSL users in their FiOS footprint to the company's more reliable and cheaper-to-maintain fiber network. According to statements made by Verizon this week, the company converted 250,000 homes to fiber so far this year -- on pace to reach 300,000 by year's end.

Click for full size
Verizon CFO Fran Shammo told attendees of a Wells Fargo investment conference this week that by the end of this year, Verizon will have just 1 million DSL customers remaining in areas upgraded to fiber.

Refreshingly, Shammo is one of only a few pay TV executives that doesn't have his head firmly buried in the ground when it comes to realizing the potential impact of cord cutters.

"We invested in FiOS for broadband and TV, but we're smart enough to realize that the ecosystem will eventually change and people are bringing in content over the top," Shammo said. "We want to make sure we have the fastest and best broadband connection, which we believe we do because we're the only ones that have fiber to the home besides Google in certain areas, but we know over the top is going to be more popular."

"We're playing in the over the top arena, we're prepared for it and we'll react the way we'll need to," Shammo said. One can't rule out the possibility that this could someday include usage caps, though Verizon has repeatedly stated no such plans are on the horizon (well, unless you're a bandwidth junkie consuming multiple terabits per month).

While some companies insist that users don't want faster speeds (not coincidentally usually companies that can't or won't offer them), Verizon insists the company has seen great success with faster options. 40% of the company's existing FiOS customers now subscribe to a FiOS Quantum tier, at speeds of 50 to 500 Mbps.

Granted a lot of that is because Verizon's pricing is entirely designed and scaled to nudge users to faster speeds by making base speeds costly to begin with: the company's base 15/5 Mbps plan already starts at $50 for one year, jumping to $70 a month for the second year of your contract. In addition to converting DSL users to FiOS, making more from existing users via price hikes has been Verizon's other primary objective the last few years.

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motoracer

join:2003-09-15
united state

2 recommendations

Expensive

Holy crap...Fios is expensive!

ITALIAN926

join:2003-08-16
kudos:2

Re: Expensive

Compared to what exactly? DSL? Fios requires like $1000 in buildout, equipment and labor, how much would you charge per month?

motoracer

join:2003-09-15
united state

Re: Expensive

TWC? (really anybody?) The cheapest FIOS plan is 15/5 and you're agreeing to pay an average of $60/month for a contracted 2 years. A 15/1 plan with TWC is 35/month no contract.

ITALIAN926

join:2003-08-16
kudos:2
Reviews:
·Verizon FiOS

1 edit

Re: Expensive

Umm yea, Time Warner 50 meg service, which is supposedly "ultimate" is $64.99 a month (for the 1st year,) compared to FIOS 50 Meg $59.99 , and Verizon provides a helluva lot more upload (50/25) . So if price is all that matters to you, then stick with Time Warner 15Mbps. Hope you drive a Hyundai or a Kia.

McLovin
Chicka chicka yeah
Premium
join:2005-06-12
Fairbanks, AK
Reviews:
·GCI.net

Re: Expensive

said by ITALIAN926:

Umm yea, Time Warner 50 meg service, which is supposedly "ultimate" is $64.99 a month (for the 1st year,) compared to FIOS 50 Meg $59.99 , and Verizon provides a helluva lot more upload (50/25) .

I pay $119/mo for 22Mbps/2Mbps with 200,000MB of usage/month.

Plans w/ usage.
Note the fine print...

--
Tube surfin' at 22Mbps/2Mbps
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS
Optimum Online usually is $39.99 for 15/5 in promotion. Generally if your a "NEW" customer add you get the promotion rates. If your --taken for granted-- they offer you little to no discount and raise your rates to the full regular price. This is what many complain about. Verizon is smoking some crack thinking people would pay $70 for 15/5 FIOS when there's a competitor that can offer it for $55 off promotion-- which isn't even the point, b/c once you switch you SHOULD get the promo rate anyway which is about 1/2 what Verizon wants to gouge you for... Who wants to pay FULL PRICE when they can punish the provider for offering squat to stay?!?

You'd think that after 1 or 2 years the speeds would get faster and/or get more for the same price, but cablevision bumped Ultra 50 subs to ultra 100 only to double & triple the rate off promotion depending on how much you were paying on promotion. If this was done "RIGHT" the off promo subs would get ultra 100 for $50-$55. They could have saved nearly 2k subscribers on this suggested offer and forced Verizon to counter with their own deals.

ITALIAN926

join:2003-08-16
kudos:2
Reviews:
·Verizon FiOS

1 recommendation

Re: Expensive

I have a little bit of info for ya, the overwhelming majority of Verizon FiOS orders include video service, the rest that arent are primarily due to homes passed by FiOS without town TV franchise agreements. So this entire conversation is pretty much moot.

I know when someone "cut the cord" , like yourself, you start to believe that everyone else has done it too. Time for a dose of reality. There are still close to 100million TV subscribers in this country. Yes, Im rounding off to 100. Your previous stated statistic of 65million is absurd.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
said by tmc8080:

Optimum Online usually is $39.99 for 15/5 in promotion. Generally if your a "NEW" customer add you get the promotion rates. If your --taken for granted-- they offer you little to no discount and raise your rates to the full regular price. This is what many complain about. Verizon is smoking some crack thinking people would pay $70 for 15/5 FIOS............... ........................

I don't even pay that much for the 150/65 tier when bundled with my other services.

motoracer

join:2003-09-15
united state
said by ITALIAN926:

Umm yea, Time Warner 50 meg service, which is supposedly "ultimate" is $64.99 a month (for the 1st year,) compared to FIOS 50 Meg $59.99 , and Verizon provides a helluva lot more upload (50/25) . So if price is all that matters to you, then stick with Time Warner 15Mbps. Hope you drive a Hyundai or a Kia.

Most of the general public doesn't care about upload speed. All they care about is how fast they can download/stream movies/watch youtube/etc. All of which can easily be done on a 15/1 connection.

I drive a Kia Optima actually. Amazingly good car (and sexy I might add, mine is far from stock) - best in it's price range by far. What's that got to do with anything?
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS
That $1k build is now closer to $400 per customer in big cities such as NYC-- that is unless they're forced to move the lines, after (being deployed)which they'll tack on 99 cents surcharge per month to pay for the utility moving required by NYC/NY State.

bundlemania

@verizon.net
The triple play bundles at the same speeds are around $10-15 more. They are very much priced to push you into bundling rather than standalone internet.
brianiscool

join:2000-08-16
Miami, FL
kudos:1
If you go with 150/75 with a two year contact. Your bill will be $99 a month after tax.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

2 recommendations

Bring me FiOS I'll take it

Dear Mr Shammo,

I'll gladly take FiOS. I'll even pay the time and materials charge since I live in a duplex (which is not a standard install). And I'll take a triple play since I have TV and I need a home phone for the alarm system. And Comcast went out again today. Your highly rated FiOS internet is popular, we just can't get it because your company won't build it. I know many people in my area that would gladly kick comcast to the curb and take FiOS. And FiOS has a low churn rate among subscribers.

Signed,
Angry Comcast Customer
--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner and I currently have DirecTV. They are much better than broadcast TV.

I have not and will not cut the cord.
Crookshanks

join:2008-02-04
Binghamton, NY

Re: Bring me FiOS I'll take it

They'll likely come back to FIOS expansion when the wireless market matures, contrary to what the naysayers would have you believe. They aren't going to be able to unload much of their remaining POTS/DSL footprint, unless Frontier wins the lottery or some such, and they'll have to put the CapEx somewhere once the demand for it comes down on the wireless side of the business.

Sucks to be withering on the vine until that happens though. Take heart, you'll see FIOS way sooner than we will here in sunny Binghamton, even if it's years away.
silbaco
Premium
join:2009-08-03
USA

Re: Bring me FiOS I'll take it

Indeed, they will probably expand FiOS eventually. They may never expand it to their more rural areas, but they have a lot of urban areas without FiOS. Deploying HomeFusion in those markets is completely unrealistic.
openbox9
Premium
join:2004-01-26
Germany
kudos:2
Wow, finally, a couple of people that agree with my view that VZ's CAPEX will shift back to wireline once it moves from wireless. Refreshing, thank you.
DanM64

join:2013-01-10
Mokena, IL
Reviews:
·Comcast

1 edit
I would sign up for FiOS tomorrow if they ever built out in Chicagoland. Put me down for at least a double play! I use Comcast for internet currently, along with Dish TV service. I have Dish because the HD video quality is FAR superior to Comcast (as well as far cheaper), but I'd dump Comcast and Dish for FiOS internet and tv in a second, their HD quality is at least equal to satellite, if not better. AT&T continues to push their embarassing U-Verse (which still isn't available in my area), so I see know reason another company shouldn'be be allowed to bring in FTTH. I will NEVER cut the cord.
elefante72

join:2010-12-03
East Amherst, NY

2 recommendations

The problem

And here lies the problem w/ cord cutting. I currently pay $75 for 50/25 + SelectHD, and after one year 50/25 is $80, more than what I am paying for the two play locked in for 2 years.

I personally think the 2-play is a good deal and the wife is happy, but the internet-only price is high, but at least it comes with a 10TB soft cap, not the 300GB foolishness Comcast is about to levy, AND Verizon doesn't jam you up for modem rental.

I think it is a fallacy that fiber is lower cost it is not. If there are line issues and fiber its there, it makes sense to bite the bullet, but for minor issues good luck getting converted. DSL they are not going to upgrade so the speeds are simply not competitive, and it makes sense from an investment perspective if they can sign the customer up for 3 play (as most DSL are already 2-play). The fact that Verizon uses PON is going to cause them issues when others will simply go to metro ethernet, they will have to do a lot of last-mile NID upgrades for $$$.

Onedollar

join:2001-08-27
Pomona, CA
kudos:6

Re: The problem

said by elefante72:

AND Verizon doesn't jam you up for modem rental.

Yet, soon to change
Crookshanks

join:2008-02-04
Binghamton, NY

Re: The problem

OMG, we might have to pay for our own modems?! How horrible! I can remember back in the day, when my ISP gave me a free POTS modem, they even supplied upgrades for these modems as the technology advanced and fixed them if they broke....

Err, wait, no, that's not what happened at all. We had to pay for them then and they cost a lot more money to boot. I recall paying north of $150 for my USR Courier v.34+ external modem, top-of-the-line in its day. Today I can buy a top-of-the-line Surfboard 6141 for less than $80 from Amazon.

Said with fewer words: Quit your whining, the modem charge is the least obnoxious thing the MSOs are doing to their customers.
MrBungle87

join:2013-01-18
Durham, NC

Re: The problem

If this is so, why do MSOs keep raising their modem rental rates? Does it cost them more on an ongoing basis to provide you with a piece of shit refurb Ubee modem? Do they understand what sunk costs and depreciation are?

ITALIAN926

join:2003-08-16
kudos:2
Good luck with that when video customers require it, even when they dont subscribe to internet.

N10Cities
Premium
join:2002-05-07
Fort Smith, AR
Ummm....with FIOS, you don't NEED a modem, do you? With our FTTH service here in Lavaca, they put an ONT on the side of your house and run a cat 6 drop to where you want it. Just need to attach a router or connect your PC directly...

Karl Bode
News Guy
join:2000-03-02
kudos:42

Re: The problem

You need to use Verizon's approved gateway connected to the ONT.
jjeffeory

join:2002-12-04
USA
You need their Action tec MoCa router if you're going to be watching tv. I'm not sure whether or not they will let you buy your own. They could start to charge a monthly fee for that. Frankly, their quoted prices don't include taxes, or most importantly, they don't include DVR STB prices. That makes my nice and reasonable quoted monthly $125 jump to $175.
flashcore

join:2007-01-23
united state

Re: The problem

You don't NEED the Actiontec to watch TV, you can get around it with any device that converts MoCa to Ethernet and then use any off the shelf router in place of it. In my case I am using a Motorola adapter to convert the signal and a PFSence box as a router and it works fine with the only downside being I cant use the Verizon Remote DVR options. The Actiontec they gave me will go right back to them if they try to charge me a monthly fee for it as it just sits on a shelf collecting dust.
elefante72

join:2010-12-03
East Amherst, NY

Re: The problem

It depends. If you have MoCA WAN out of the ONT (coax out), you must use the Actiontec. If you have Cat out (as I do), you can use your own gateway, but it is not supported. Every time I call in they tell me I need to plug in my AT to diagnose. I just tell them I did it.

As for STB, you also need MoCA LAN, which the only device that does both MoCA WAN/LAN is the Actiontec. Verizon will let you buy it for $99, and many are available on the net.

Yes you could use bridge devices, but it still needs to route out to the WAN to do anything, so it makes little sense to buy a bunch of bridge devices. It will simply be cheaper to purchase the GW from Verizon if it comes to that or buy one on ebay. Maybe Verizon starts tracking MACs and that goes away, but time will tell...

I use cablecard, so I am all Cat, no MoCA at all and no STB ever...

N10Cities
Premium
join:2002-05-07
Fort Smith, AR

Re: The problem

Cool! Thanks for the info, everyone!

buzz_4_20

join:2003-09-20
Limestone, ME

Of Course people are going to take 50 or higher.

It's worth $10 a month to go from 15/5 to 50/25.

Not worth it to go to 75/35 from 50/35 though. IMHO
silbaco
Premium
join:2009-08-03
USA

Re: Of Course people are going to take 50 or higher.

Not only that, but a vast amount of the bundles they offer include 50/25. It would be more expensive to take the 15/5 instead.
trackdrew

join:2008-08-28
Columbia, MD
Except that if you also subscribe to TV service 15/5 actually gets provisioned at a little over 30/25. Only reason I'm still on 15/5.

Extra $10 per month is only for months 2-12, it goes up after that.

buzz_4_20

join:2003-09-20
Limestone, ME

Re: Of Course people are going to take 50 or higher.

True... but the price difference is still $10 after

cableties
Premium
join:2005-01-27

its not really that expensive...

I have the 15/5 and its really 25/20 (did Fios Speed test).
And paying $44/month.
Via CC (they won't bill me but send me paper invoice...wtf!)...

I may up the package with HDTV but at this time, I am happy with netflix, ATV and LIVE/PSN stuff...
--
Splat

twc

@rr.com

twc

For 28 dollars am getting 15 mps twc with retention promos
shmerl

join:2013-10-21

FiOS doesn't seem to expand

I can't get FiOS for a long time already even though it exists somewhere nearby. No idea how soon will Verizon connect all houses in NYC, but it doesn't look like they'll do it before their promised date of July 2014.
thetick

join:2009-06-22
White Plains, NY

Re: FiOS doesn't seem to expand

said by shmerl:

No idea how soon will Verizon connect all houses in NYC, but it doesn't look like they'll do it before their promised date of July 2014.

I would not expect to get FIOS unless it's already available. FIOS is not expanding into new markets anywhere. Verizon can't public state so, but Verizon surely will be able to get out the all of YC contract.. after a few lawyers get rich.
shmerl

join:2013-10-21

Re: FiOS doesn't seem to expand

May be new mayor will give them a kick. De Blasio was talking about it before. It could be just a PR talk of course.
davidhoffman
Premium
join:2009-11-19
Warner Robins, GA
kudos:3

Ignorant Verizon CFO Fran Shammo

"...we're the only ones that have fiber to the home besides Google in certain areas..." from Verizon CFO Fran Shammo. The ignorance of this person concerning FTTH deployments in the USA is incredible. Why does anyone listen to this person? Since when have CFO statements been paid so much attention? I thought the CEO, President, or Vice-President of a company was the one to speak on these issues and be listened to. Why does the press pay so much attention to this person?
tanzam75

join:2012-07-19

Re: Ignorant Verizon CFO Fran Shammo

The press pays attention to Google Fiber. It pays less attention to other fiber build-outs.

That's why Fran Shammo talked about Google Fiber, and not something else.

WHT

join:2010-03-26
Rosston, TX
kudos:5

REF: Holy crap...Fios is expensive!

I have had a few potential subscribers feel they want and need - uncapped, unthrottled, unlimited 50 Mbps service. I suggest they work with my upstream provider directly to get 50 Mbps for $1,000 per month.

They tend to re-evaluate their "want and need".
swarto112
Premium
join:2004-02-17
Brookfield, WI
Reviews:
·Time Warner Cable

FIOS rocks

compared to all the others I've used, FIOS is the best. Yes, you pay a premium but you rarely have headaches. The service always exceeds expectations. In a perfect world, I would still be living in a FIOS area and not cutting the cord because Time Warner sucks, CableOne sucks, ATT Uverse sucks...COmcast isnt so bad.
McBane

join:2008-08-22
Plano, TX

Lower the damn business prices

I need MOAR bandwidth for my static IP Fios!
joeharney

join:2000-04-30
Brooklyn, NY

2 edits

what a scam

you do not need 75 to 50mbs to dl movies and stream data. full of crap verizon ,TWC and ( insert your favorite ISP here).

Where are the plans for people who can only afford 19.95 or 29.95 for the internet.
Where is the 5/1 and 3/1 plans. 50mbs and greater is insane for people who ONLY ise the internet to surf, email, etc.

Video Streams work just as well on a 5/1, 3/1 and 2/1 plan. Let's be honest here. If you plan to DL from newsservers - than yeh - 50mbs will make big difference between you taking 6 hours with a 5/1, 3/1 or 2/1 plan VS 50/1 mean about 15 minutes. Also helps with Steam games and DLC content, but hey - i'll go for the 3/1 plan and save some money and read a book, go outside, goto sleep, etc.

These Prices and Plans are insane. Remember alot of people are on a FIXED income.