Verizon Pushing Troublesome DSL Users Toward FiOS
Eliminating Problematic Lines to Reduce Cost
Verizon's FiOS expansion is on hold
with the exception of major city franchise build obligations, though Verizon stated on a recent earnings call that a focus for this year would be to get stubborn DSL users in markets already upgraded to FiOS
to switch to the newer technology. Verizon's been busy trying to ramp up take rates in already upgraded markets, and the move allows them to save money since fiber lines incur lower maintenance costs.
"What you’re going to see this year is a very strategic initiative, that we go out and we look at areas where there are chronic copper problems and we start to transform them onto our FiOS network," recently stated Verizon's Fran Shammo." And the math would say if there is a chronic problem that we have to visit more than two times a year, the actual financial benefit of us transforming that to FiOS pays for itself within that year."This 768 kbps user in our forums
is getting a taste of the new initiative and has been told he's being upgraded at no cost. "Verizon called me up stating that as someone who has made several reports of problems with the copper lines, they are changing out my copper lines to the home to fiber," says the user. "My phone plan and internet are supposed to be the same plan/rates and I will not be seeing any increases nor incur any costs as part of this."
As of the end of 2011 Verizon passed (not necessarily served, customers may be just out of range) 16.5 million households with fiber. Once their urban franchise push (New York, DC, Philly, Pittsburgh) is completed in a few years, Verizon says they should have around 70% of their overall broadband footprint covered with FiOS as they reach 18 million homes passed.
Makes Sense Copper wireline maint is horrible not to mention loss that companies are suffering in certain areas due to theft. If they are addressing a customer sat problem with a newer modern platform at a reasonable rate then who is to complain.
In my area you cant even order DSL anymore, only FIOS. The only issue I see was that DSL was $29 (DL) a few years ago and would get 6Mbit in my area (you can stream), whereas 15/5 is the lowest now offered in my area and if you just want internet that is pushing $60.
So to even come close to a reasonable DSL package you will need the double play at a minimum net/phone and that is around $75.
Now if I did PAYG voip.ms + DSL I would pay in the $40s, now this is in the $70's which is a good 60-70% more.
So while the technology is glittery better, the costs also skyrocket. I would assume VZ to coerce the users off the platform at a 1:1 cost and maybe provision a new tier to deal w/ the issue. Then they can always upsell on the triple play, and of course if you want the TP you go to 15/5 and can never go back
At least VZ is being smart about this and upgrading as necessary. My pops in San Ant had to deal w/ AT&T raising their tele rates every few months, so that basic was almost pushing $30/month and there was some grounding issue that AT&T didnt want to fix (nor would they). So I moved him to voip.ms, now he spends under $5 and sound is crystal clear over cable (TWC).
As companies milk their copper infra there will become a point that upgrading cost less than leaving and either they sell it off (a la VZ, others) or they upgrade. AT&T is going to have a massive issue w/ uverse on their hands over the next decade. It looks like VZ has found that point. This is also good, because if they upgrade to FIOS then they are less likely to sell off that territory and will eventually upgrade their entire area. I mean you could have Frontier that will never upgrade
Re: Makes Sense Its a matter of investment and customer service. Many people are very happy w/ uverse. My pops tried it out and the line quality was so poor the service suffered. That is the problem w/ copper. So he has 50 year old copper that has some issue between the vrad and him, and at&t isnt going to run a new line, so he goes w/ TWC.
FTTP is 100% more expensive UPFRONT, however over time it will cost less, and TQI is much higher on FIOS than Uverse seeing that att will have to eventually run new lines and replace the vrad w/ GPON. Also bandwidth is potentially an issue and scalability, environmental, and electrical. There is more to the equation than capex, there is opex and infrastructure costs too. Latest vrads are much more energy efficient and smaller than say 2 years ago, and I am sure cheaper. That is the joke network deploy is constantly getting less expensive and my bill does not...
Both AT&T and Verizon are sinking a fortune into LTE so that is defocusing them from building out prem solutions but as the competition wakes up (cable) they will have to respond or they will start losing customers. Cable is pretty much done w/ docsis 3 and that didnt cost squat, so they are in good position.
Re: Dumb users
said by BiggA:My folks for one. They are low income retired, want basic phone service (no LD plan, phone cards work fine), no pay TV (OTA works fine for them), no cell service, and internet fast enough to let them download email and browse the occasional web site.
What dumb users who are in a FIOS area don't have FIOS already? Why would you have an old, slow, primitive form of internet if you can get a 43/35 connection and non re-compressed HD channels over fiber?
ATT came through 6 months ago with uVerse and was calling them daily trying to get them to convert. The cheapest uVerse package that came close to being similar to what they currently have would have cost them $20/month more.
Re: Dumb users
said by CCarson:i am in a FiOS market as well. I have the 3 meg DSL and POTS unlimited local. I don't need the 15/5 lowest tier speeds FiOS offers. I can stream netflix fine . With DSL i own my router and modem. I don't want verizon's garbage FiOS routers they force on you and for you to return at the end of service. I don't want an ONT with a battery I am responsible to replace and can't even be found in a local store. I don't want the HOME INVASION of what they call an install. Keep your hands off my computer i don't want verizon installing their bloatware / garbage ware on MY computer. I don't need verizon trampling through my home. I do not pay for or subscribe to commercial infested garbage that is called television as i can't stomach watching 5 minutes of content VS 10 minutes of non related content and pay for "TV service" on top of it PLUS pay for each TV to have a "box" on it to receive channels. i get free HD over the air with antenna which i hardly watch anyways. I don't want the increased cost of FiOS either that goes up after promotions end.
FiOS is available in my area and I don't subscribe. Why? I'm a single-person household. My data needs are met perfectly by 3Mbps DSL. Any slower and I couldn't stream Netflix; but anything faster would be a waste for just me.
So what's dumber: not subscribing to superior technology when it's available, or paying an extra $30 per month for bandwidth I don't even need?
| |said by BiggA:Well, call me dumb. I do not want to pay FIO$ price$ for access I don't need.
What dumb users who are in a FIOS area don't have FIOS already?
I also do not pay [through the nose...] for cable/fiber TV; I use an antenna.
I do not want deal with Verizontal's billing disasters for FIOS.
And I refuse to surrender my copper-based, works without any local power, phone.
I have friends who are getting FIOS because they now have no broadband options, but given their repeated, multiday, power outages; we'll swap the toy 7Ah battery for a 75 Ah deep cycle one, and they also have a propane-fueled 10kW generator good for~10 days duration at 8 hours/day. And, need I add, they have more money then I do.
Verizontal dearly hopes that they & all their neighbors will abandon copper, but I know that won't happen...
Re: Dumb users
said by BiggA:Bold text added. I'm all in favor of anyone wanting FIOS doing so; just saying not everyone will.
FIOS is worth it to me for the speed and video quality.
If you're really that concerned about copper reliability, you could keep a POTS line, and FIOS for the other two,
And rotsa rock keeping a copper POTS, the only folks I know are grandfathered in; She will no longer allow same.