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Verizon Now Offering No Contract FiOS Everywhere
Without forcing users to pay more money for month-to-month

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.
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HarleyYac
Lee
Premium Member
join:2001-10-13
Allendale, NJ

HarleyYac

Premium Member

TWC and OOL,Comcast Commercials

Hi,
I guess Madison avenue will be revising commercials this morning
Lee

ITALIAN926
join:2003-08-16

ITALIAN926

Member

Re: TWC and OOL,Comcast Commercials

Brighthouse is funny making such accusations. Here you have Cable companies copying phone service... and Verizon copying and improving TV service... and theyre talking about copying no contracts? lol stupidity.
Bob61571
join:2008-08-08
Washington, IL

Bob61571

Member

How does this affect the Frontier FiOS customers?

per this in the PR statement:
"The month-to-month option is available in those states, plus the FiOS markets of Indiana, Oregon, South Carolina and Washington, which are in the process of being transitioned to Frontier Communications. "

Since transfer expected July 1, what good does this do Verizon for the above customers?

I would expect that these customers would be better off to go for long term, and hope that Frontier would hold that rate steady until expiration. Technically, I'm not sure if Frontier has to continue charging Verizon's rates.

tshirt
Premium Member
join:2004-07-11
Snohomish, WA

1 edit

tshirt

Premium Member

Re: How does this affect the Frontier FiOS customers?

said by Bob61571:

I would expect that these customers would be better off to go for long term, and hope that Frontier would hold that rate steady until expiration. Technically, I'm not sure if Frontier has to continue charging Verizon's rates.
Some states got them to agree to honor all existing contracts at the same terms, even if otherwise not required.
Here in washington they are making a big push to complete as many installs as possible BEFORE the handover.
My Brother is getting his installed on Wednesday (only ordered last week) He got the $89/triple play/2 year contract. (basically $20 off the list price of $109 per month= $480 savings over the 2 years and the ETF will reduce by $15 per month, so in 2 years he will be free to play frontier FIOS vs ComCast for the best deal

Frink
Professor
Premium Member
join:2000-07-13
Scotch Plains, NJ

Frink

Premium Member

shock

Whoa, Karl, a neutral-toned story...this is like a raving positive 5 stars super-happy thumbs up from the Bode playbook...
rmckofke
join:2001-05-15
Staten Island, NY

rmckofke

Member

what does this mean for current customers?

I signed a 1 year contract back in November (with a 2 yr price guarantee on my bundle) so I'm assuming that, if I make no changes, nothing will happen. If I should need to cancel my service before this coming November will I still need to pay the ETF or will that go away with the new deal?

Granted I'm not considering giving up the service, I just like to know all of my options.

aztecnology
O Rly?
Premium Member
join:2003-02-12
Murrieta, CA

aztecnology

Premium Member

Re: what does this mean for current customers?

said by rmckofke:

I signed a 1 year contract back in November (with a 2 yr price guarantee on my bundle) so I'm assuming that, if I make no changes, nothing will happen. If I should need to cancel my service before this coming November will I still need to pay the ETF or will that go away with the new deal?

Granted I'm not considering giving up the service, I just like to know all of my options.
My contract ends in August, and I think I'm going to like the flexibility of changing plans around If I need to...
Sammer
join:2005-12-22
Canonsburg, PA

1 edit

Sammer

Member

Re: what does this mean for current customers?

Nothing, the release makes it very clear this new month to month deal is for new customers. ETF still applies to those under existing contracts.

aztecnology
O Rly?
Premium Member
join:2003-02-12
Murrieta, CA

aztecnology

Premium Member

Re: what does this mean for current customers?

said by Sammer:

Nothing, the release makes it very clear this new month to month deal is for new customers. ETF still applies to those under existing contracts.
Maybe you missed the part about my contract expiring in 60 days, and that if I make a change I won't be stuck in another contract or looming ETF...
margaf
join:2000-12-22
Las Vegas, NV

margaf to rmckofke

Member

to rmckofke
said by rmckofke:

I signed a 1 year contract back in November (with a 2 yr price guarantee on my bundle) so I'm assuming that, if I make no changes, nothing will happen. If I should need to cancel my service before this coming November will I still need to pay the ETF or will that go away with the new deal?

Granted I'm not considering giving up the service, I just like to know all of my options.
I just called because I wanted to upgrade to the 35/35 and ultimate hd and it means nothing, the guy said its for new customers but I did get free HBO/Skinamax for 3 months.
BiggA
Premium Member
join:2005-11-23
Central CT
·Frontier FiberOp..
Asus RT-AC68

BiggA

Premium Member

Dumb consumers

I guess this is good, but this is just showing how dumb consumers are. No one else offers (or has the bandwidth to offer) 130 19mbps HD channels. No one else offers or can offer 20-25mbps uploads on the internet service. Anyone who lives in a Fios area would be stupid not to have Fios.

If this overcomes customer stupidity, good for Verizon though! The good part is, that once people switch to 30/15 internet (or whatever the consumer package is these days) and 19mbit HD, Verizon effectively has a lifetime contract on them without actually having one, because it would be impossible to go back.

MovieLover76
join:2009-09-11
Cherry Hill, NJ
(Software) pfSense
Asus RT-AC68
Asus RT-AC66

MovieLover76

Member

Re: Dumb consumers

As great as Verizon FIOS's service is, it has long not been very competitive on price, currently I have Directv which I share with my landlord who lives upstairs, verizon wouldn't allow us to share an account, so I pay $40 for directv with an HD DVR
$29.99 for Internet via cablevision, which isn't as fast but does the job, when the promo ends I might consider fios because of this option
and I have phone service through phone power for $10

That's $80 a month for everything, granted I have a special case, but even cable triple is cheaper per month than fios, I don't watch a whole lot of tv and directv has more than enough HD for me, the number of channels etc isn't the most important
BiggA
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

Re: Dumb consumers

Nor does DirecTV. Running cables to illegally share service can be done irregardless of the service.

The real question is: who cares? Fios has 19mbit HD, no one else does. Fios has 20mbit uploads, no one else does. End of story.
lesopp
join:2001-06-27
Land O Lakes, FL

lesopp

Member

Re: Dumb consumers

It's about trusting the phone company, considering their history of inventive fees and the like, many people are wary.
betam4x
join:2002-10-12
Nashville, TN

betam4x to MovieLover76

Member

to MovieLover76
I had verizon fios with 35/35 speeds, all tv channels, all movie channels, full hd, $109/mo. Satellite can't come close to that price. Satellite TV Service ALONE costs more than that.

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

KrK to MovieLover76

Premium Member

to MovieLover76
Uh, Sharing of accounts is not allowed. Sure you can do it. You could also share FIOS too.

bUU
join:2007-05-10
Kissimmee, FL

bUU to MovieLover76

Member

to MovieLover76
said by MovieLover76:

As great as Verizon FIOS's service is, it has long not been very competitive on price
Yes, good point. I'm happy to pay more for FiOS than I paid for Comcast (almost double, actually, since FiOS doesn't have a service level comparable to Comcast's family tier, Digital Economy, which was what I had before switching), but not everyone else is. A lot of people don't value television as much as we do.
said by MovieLover76:

currently I have Directv which I share with my landlord who lives upstairs, verizon wouldn't allow us to share an account
The main reason why encryption has become such a necessity is just how easy it was, in the past, to violate the terms and conditions and share service between what are legally separate units.

banditws6
Shrinking Time and Distance
Premium Member
join:2001-08-18
Frisco, TX

banditws6

Premium Member

Sounds good for customer uptake

I'm looking to move to a FiOS area and the contract / ETF would not have stopped me from pursuing service with Verizon, but this makes it even sweeter. Good job guys.

Of course, this means that prices could fluctuate without warning.

N3OGH
Yo Soy Col. "Bat" Guano
Premium Member
join:2003-11-11
Philly burbs

N3OGH

Premium Member

Re: Sounds good for customer uptake

I wasn't too worried about the contract and ETF when I signed last year.

I figured I had a 30 day window to chuck it. The contract is only 1 year, and they freeze the price for 2 years.

So, the last year I can bolt if I want. Of course, why would I? They guarantee the price, and the service is superb.
Sammer
join:2005-12-22
Canonsburg, PA

Sammer

Member

Re: Sounds good for customer uptake

said by N3OGH:

I wasn't too worried about the contract and ETF when I signed last year.
You may not have been worried but I'm sure that $360 ETF scared off some customers and undoubtedly their market research told Verizon the same thing.

N3OGH
Yo Soy Col. "Bat" Guano
Premium Member
join:2003-11-11
Philly burbs

N3OGH

Premium Member

Re: Sounds good for customer uptake

Indeed...
horseshoe
Premium Member
join:2006-10-11
Upland, CA

1 edit

horseshoe

Premium Member

not..

I'll take it, I'll take it, ah, wait, Fios is not available in this Verizon territory. Maybe 2012? Worry free...

Bill Neilson
Premium Member
join:2009-07-08
Alexandria, VA

Bill Neilson

Premium Member

Sounds good but I wonder where

they are going to make up for any lost income due to the absurd contract-breaking fees.

You know they will too....no way they just cut off a source of income

jmn1207
Premium Member
join:2000-07-19
Sterling, VA

jmn1207

Premium Member

Capacity Issue

Great, now that contracts are no longer required, Verizon is free to start dropping channels in an attempt to try and recover capacity without having to worry about consumer legal retaliation. If you were paying $X amount for a particular channel package, when they take away some channels to make more room for something in the future that may not be included in your current package, you have the option to cancel service with no strings attached.

It works both ways.
talz13
join:2006-03-15
Avon, OH

talz13

Member

Re: Capacity Issue

said by jmn1207:

If you were paying $X amount for a particular channel package, when they take away some channels to make more room for something in the future that may not be included in your current package, you have the option to cancel service with no strings attached.

It works both ways.
You can now cancel without even having to wonder if it's a contract invalidating change that Verizon made?
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin to jmn1207

Member

to jmn1207
Make more room for what...? Since when is fiber a limited capacity transfer medium?

jmn1207
Premium Member
join:2000-07-19
Sterling, VA

jmn1207

Premium Member

Re: Capacity Issue

said by sonicmerlin:

Make more room for what...? Since when is fiber a limited capacity transfer medium?
Verizon chose to use existing broadcasting methods to save money. The set-top-boxes and the head-end equipment have a limited amounted of QAM channels over an 870MHz frequency range for TV delivery. Since they went with a 2 HD channel per QAM build, they have now run out of space and are unable to add any new HD channels to the lineup.

Just today Verizon dropped 4 West Coast feeds to some premium HD movie channels that were largely duplicates in order to allow room to add some new channels.
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: Capacity Issue

Wait...you're saying that there' 870MHz worth of digital, interesting TV out there?

jmn1207
Premium Member
join:2000-07-19
Sterling, VA

jmn1207

Premium Member

Re: Capacity Issue

Amazing huh?

At 6Mhz per channel, there are about 140-150 QAM channels. FiOS uses up to 10 for SD stations per QAM and 2 HD stations per QAM. With all of the rules requiring them to make so much room for local stuff, they really have run out of space to add some HD channels that the cable competitors are now offering.

A rumor going around is that many of the SD channels might be moved to an IPTV system to recover some more space, although this would cripple those of us with CableCard devices, as these channels would no longer be available.
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: Capacity Issue

Why can't they just upgrade the system to 1GHz?

jmn1207
Premium Member
join:2000-07-19
Sterling, VA

jmn1207

Premium Member

Re: Capacity Issue

said by iansltx:

Why can't they just upgrade the system to 1GHz?
They need equipment that can work at this extended frequency. None of their set-top-boxes currently in circulation are capable of handling 1 GHz. It's an expensive update, as Cox Cable can agree.

It's possible to only add premium channels in the upper spectrum and distribute new DVR's with 1 GHz tuners to these customers, but that is still quite a complicated endeavor and makes for very restricted limitations on channel lineups.
MisterBill
Verizon FiOS
join:2002-06-05
Yorktown Heights, NY

MisterBill to jmn1207

Member

to jmn1207
said by jmn1207 See ProfileJust today Verizon dropped 4 West Coast feeds to some premium HD movie channels that were largely duplicates in order to allow room to add some new channels. [/BQUOTE :

I thought they did it to answer the TWC commercial accusing them of inflating the # of HD channels they had when some were just time-shifted duplicates (which I thought was stupid because if I want to watch something NOW, I don't care that it's 3 hours off from another channel that I have).
Sammer
join:2005-12-22
Canonsburg, PA

Sammer to jmn1207

Member

to jmn1207
said by jmn1207:

Great, now that contracts are no longer required, Verizon is free to start dropping channels in an attempt to try and recover capacity without having to worry about consumer legal retaliation.
Nope, Verizon still has lots of FiOS customers under existing contracts and they still offer contracts to new customers who want the two year price guarantee. BTW, why do you think they need to recover capacity in first place?

bUU
join:2007-05-10
Kissimmee, FL

bUU to jmn1207

Member

to jmn1207
The specific channels provided were never part of the obligation to provide service. They could have dropped a few channels any time they wanted, without any legitimate legal exposure regarding contracts with subscribers.

•••

SLD
Premium Member
join:2002-04-17
San Francisco, CA

1 edit

SLD

Premium Member

Stand on your own...

If you provide a good service at a good price, you don't need long-term contracts to maintain customers.
In fact, long-term contracts should be a warning signal to potential subscribers.

bUU
join:2007-05-10
Kissimmee, FL

bUU

Member

Re: Stand on your own...

said by SLD:

If you provide a good service at a good price, you don't need long-term contracts to maintain customers.
Perhaps, but offering a "good" service (as consumers would define it) at a "good" price (as consumers would define it) may not serve the company's overriding long-term interests as well as other approaches. FiOS actually charges more than a lot of consumers would consider "good", and so the contract tended to keep customers around long enough to get them hooked on the superior service. However, it likely was also a major reason why they were unable to grab as much market share as they had planned to. So it's a trade-off.
said by SLD:

In fact, long-term contracts should be a warning signal to potential subscribers.
Of course -- everything (every aspect of terms and conditions) should always be a warning signal to potential subscribers. Caveat emptor.

MovieLover76
join:2009-09-11
Cherry Hill, NJ
(Software) pfSense
Asus RT-AC68
Asus RT-AC66

MovieLover76

Member

This could work for me

I'm using cablevision, only because they offered a $29.99 promo for a year after October I'll be back up to $50 or whatever basically the same as FIOS would be and fios offers 15/5 and I'm currently paying for 16/2, which in reality is more like 8/2 most of the time, living in an rented house it was the contract and the long install time that kept me away, but I might just switch come october now.
Ulmo
join:2005-09-22
Aptos, CA

Ulmo

Member

Congratulations to Verizon for Copying the Cable Cos No ETFs

I'll be generous and grant that Verizon copied the Cable companies. To which I answer: Congratulations, Verizon, for your success in copying the cable companies.

I'm sure the truth is more like that Verizon had some idea of the concept of offering a product without ETFs. But, let's be generous and give Verizon the benefit of the doubt that they actually, 100%, copied the idea from their competitors (and got something out of it).

Yes, I'm baiting the cable cos. The cable cos can turn around and copy Verizon's Fiber to the Home, too. Oh, wait, that's right, that's what they won't do, and are jealous of! Bwahahahahaha.

To Verizon's investors: yes, you were laden with a company with a lot of debt, for a product that will offer a slow (realistic) return on investment. But, that's what it is. A modern incarnation of a telco. What did you expect, praytell? The nice thing is that Verizon will be around to do it.

It is, however, I agree, up in the air, how much that return on investment will be. I assume from my excellent intuition into the matter that the network will be profitable and functional for many decades to come, all the while being capable of serving mostly satisfied users. Whether or not it beats out the thieves is anyone's guess. Thieves are criminals, not a good reference point. (E.g., AT&T.)

DevlishHusky
join:2004-06-07
New Milford, NJ

DevlishHusky

Member

Great!

...where do I sign up? Oh wait no fios in my area :/ and i live 15 minutes from NYC.
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: Great!

My parents live in a Verizon area...which is likely to be sold off (Central TX) ASAP because there isn't enough density to go FTTH, at least for Verizon.
qworster
join:2001-11-25
Bryn Mawr, PA

qworster

Member

Now if they'd only build in Philly....

They're all over the suburbs, but have yet to cross past the city line.

I'm not holding my breath either...

bUU
join:2007-05-10
Kissimmee, FL

bUU

Member

Re: Now if they'd only build in Philly....

Good... we wouldn't want you to asphyxiate.

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

dvd536

Premium Member

If you do it right

like fios, theres no worry of people jumping ship so theres not much revenue generated via ETFs.
• symmetrical internet
• superior PQ video compared to cable/satellites overcompressed crap
-
downside: its not available everywhere.
forsaken7719
join:2009-01-15
Selden, NY

forsaken7719

Member

Re: If you do it right

You're kidding right??!!! I'm a Cable tech in NY and have switched BACK to cable, from Fios, over 2,000 people MYSELF! And this is with the termination fees that Verizon charges. The way the cable co's get people to switch back is that they offer the customer a credit of up to $200, which at the time, was Verizons' ETF. But don't kid yourself that everybody is sooo happy with Verizons' service, because that's far from the truth my friend. Alot of people have a multitude of issues not including the horrendous billing. I hear it everyday from these people
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

step 1... step 2:

OFFER DIGITAL VOICE (voip) for $24.95 with DOUBLE the calling features of the cable companies. I can't see the cable comapanies liking this idea that Verizon finally (at long last) gets off their ass to compete. Leave it to many to be skeptical, though. Myself, I'm not fully convinced since they dropped their 25 megabit mainstream internet speeds down to 15...

•••

Dnepr
join:2001-11-28
Tarpon Springs, FL

Dnepr

Member

Silly prices

Verizon prices are idiotic...

I look at their website:

1. Internet + Digital voice = 95$ per month no contract
2. Internet + Digital Voice + TV = 89$ per month no contract...

Really??? Are they kidding me?

bUU
join:2007-05-10
Kissimmee, FL

bUU

Member

Re: Silly prices

The prices are high, but not "idiotic". They're aiming to serve premium customers, who tend to be more lucrative to the enterprise. By contrast, in most areas, the cable company is still required by law to provide a low-cost, perhaps money-losing, B1 (over-the-air broadcast channels only) service. However, week after week, the cable company is being released from those requirements in more and more communities; several dozen over the last few weeks alone. And folks in some of those communities are finding out that the cable company is dropping the B1 service, now that they're allowed to. That will bring the cable company's prices effectively closer to Verizon's, though perhaps not quite that high, in the end. Regardless, as competitive market forces prevail, the days of cheap cable service, imposed by external manipulation of the market by local governments, is coming to an end. FiOS' pricing is a picture of what the end-result will look like.
firedrakes
join:2009-01-29
Arcadia, FL

firedrakes

Member

right.

so none in my county at all...

Rural USA
@comcast.net

Rural USA

Anon

Well, Not Everywhere

In fact, not in most of the United States. Just where Verizon has decided to cherry pick.
NyNexit
join:2009-11-01
Huntington, NY

NyNexit

Member

interesting

glad to see this move.... but the service is still more expensive then cable (yes I know its "better")..... I hope this encourages some price competition, what do you think the wiggle room is for triple play service. I'd be happy with an $80 inclusive of taxes bundle.
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