Verizon: Expect More FiOS Price Hikes
As Earnings Show New Subscriber Slow Down
Verizon is again saying FiOS rate hikes are on the horizon. Back in May
Verizon CFO Fran Shammo promised that FiOS users would be seeing a number of significant price hikes. Those hikes came alongside the introduction of FiOS Quantum
, which not only delivered new speeds -- but also delivered significant price increases. That was on top of significant new price hikes for TV users -- and
the elimination of many of the company's more aggressive introductory bundle offers. Speaking about Verizon's latest earnings
, Shammo is back this week telling investors that FiOS users can expect another round of price hikes
to counter the slowdown in new FiOS subscribers:
With FiOS subscriber growth starting to taper off, Verizon Communications has "refocused more on our profit on the FiOS side" and expects to implement additional price increases on bundles in the third and fourth quarter of 2012, chief financial officer Fran Shammo said. The telco posted net gains of 134,000 FiOS Internet and 120,000 FiOS TV subscribers for the quarter ended June 30 -- well off the pace from the same period a year ago, when the telco had net adds of 184,000 Internet and 189,000 TV subs.
Verizon has been justifying the price hikes by saying the service's good showing in consumer satisfaction studies (FiOS recently came out tops in both Consumer Reports
and ACSI rankings
) means that the company feels it can charge a premium for the service. They of course ignored stating that a lack of competition allows them to laugh at the idea of competing on price.