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story category Verizon Stops Seriously Competing On Price
Verizon is now the Aston Martin to Brian Roberts' BMW?
09:16AM Tuesday Jun 23 2009 by Karl Bode
tags: competition · business · bandwidth · Verizon FIOS
As we mentioned yesterday, Verizon has reconfigured several of their FiOS tiers, but in doing so they've raised prices on a number of customers. Amid the discussion yesterday only Saul Hansell of the New York Times seems to have noticed the fact it was a price increase, and has an interesting piece on how Verizon seems poised to stop competing on price. The fact they can raise bundle prices during a recession says plenty about Verizon's optimism about FiOS -- or perhaps more about the kind of competition Verizon's seeing in the field.
Mike Ritter, the chief marketing officer for FiOS, made it clear that the company is feeling good enough about its brand position that it can charge a premium price even as it tries to steal customers from cable. Indeed, he said the company expects to sign up more new customers for the more expensive plans. "You will not see us advertising prices any more. You will see more about what the experience can be," he said.
Instead of price cuts, Verizon hopes to instead compete using additional services, perhaps like bundled telecommunication functionality -- or Facebook and Twitter widgets integrated into the FiOSTV GUI. Of course Verizon's big advantage right now is upstream bandwidth, something that's still a challenge for cable operators until they've perfected upstream DOCSIS 3.0 channel bonding.

You'll of course recall this attitude from the broadband landscape circa 2005, when cable (particularly Comcast), convinced that they offered a "BMW to DSL's Hyundai," felt perfectly ok with charging significantly higher prices. Non-price competition remains a luxury for carriers who enjoy a lack of real competition and usually exist in monopoly or duopoly markets.

Related:
  1. Cablevision Gets Wrist Slap For Misleading Ads
  2. Verizon Calls Cablevision's 101Mbps 'A Parlor Trick'
  3. Verizon Uses Your Forum Complaints Against Cablevision
  4. Verizon Continues Proud History Of Denial
  5. Verizon Announces New FiOS Tiers, Promotions
  6. Cablevision: FiOS? What's FiOS?
  7. Pittsburgh, Verizon Haggling Over FiOS
  8. Verizon Won't 'Slavishly Satisfy' You With 100 Mbps FiOS
Forums » Verizon Stops Seriously Competing On Price
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

FIOS Clearly Doesn't Need To Compete On Price

In most markets where FIOS is deployed people have literally fallen all over themselves to get it. If anything, it means the market price for FIOS is indeed too low and VZ has recognized this.
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GOLFnSUN
Enjoy the sun
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Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Re: FIOS Clearly Doesn't Need To Compete On Price

said by pnh102 See Profile :

In most markets where FIOS is deployed people have literally fallen all over themselves to get it. If anything, it means the market price for FIOS is indeed too low and VZ has recognized this.
I know a couple people who moved to Fios because the triple play bundle was CHEAPER than services from Comcast. They moved because of a lower price. And they are now thinking about moving back(1 already has) because their intro deal is expiring. So, for them at least, price does matter.
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vannyx
Premium
join:2003-07-07
Bronx, NY

Re: FIOS Clearly Doesn't Need To Compete On Price

this morning on my way to work i saw a verizon fios/modem router ( one of the newer ones) in my neighbors garbage , along with the equipment they attach to the house. So i guess he is back to cablevision.

Matt
Gone playing Dragon Age Origins
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

said by pnh102 See Profile :

In most markets where FIOS is deployed people have literally fallen all over themselves to get it. If anything, it means the market price for FIOS is indeed too low and VZ has recognized this.
That is a very good point and I think it's because of a trend I've seen coming for years and years. Society as a whole is becoming more technical and listening to what us geeks have to say. If we are excited as hell about something, then it must be good.

This is happening to a lesser extent in my neighborhood too. North State came in and laid a GPON network down, offered faster speeds than Time Warner, at a lower price. People are gobbling it up and when I talk tech with my neighbors, they wind up switching. They are floored that they can save money and double or triple their speeds.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME

I agree - If VZ can still have people lined up to switch with a slightly higher price.. then its in their best interest to raise the price a bit.
If FiOS is too low, the demand will be very high, and deployments won't be timely, and customers would be frustrated/leave anyways.
lesopp

join:2001-06-27
Land O Lakes, FL

said by pnh102 See Profile :

In most markets where FIOS is deployed people have literally fallen all over themselves to get it. If anything, it means the market price for FIOS is indeed too low and VZ has recognized this.
Not in my case, I'm was waiting to see if the pricing would drop for something geared towards SOHO w/static IP. Vz still wants about 25% more that what I pay now.

If the want my business they need to walk the walk and learn what competitive pricing really means.
nasadude

join:2001-10-05
Rockville, MD

this is competition?

nothing says competitive market like raising prices in a recession.

wish I had a business in a "competitive" market like telecom.
openbox9

join:2004-01-26
Alexandria, VA

Re: this is competition?

Nothing prevents you from starting a business in any marketplace. I'm sure your potential customers would welcome the additional competition.

Supervisor
Premium
join:2006-03-26
Lebanon, PA

Re: this is competition?

How about he doesn't have Verzion's money, lawyers and lobbyists working for him? There's a reason for the Sherman and Clayton acts.

wmcbrine
Touched by His Noodly Appendage

join:2002-12-30
Laurel, MD

said by openbox9 See Profile :

Nothing prevents you from starting a business in any marketplace.
Except a few billion in startup costs...
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jimbo2150

join:2004-05-10
Youngstown, OH

Re: this is competition?

said by wmcbrine See Profile :

Except a few billion in startup costs...
Not to mention the large, overbearing weight of a local monopoly, duopoly, or oligopoly crushing down with every business-crushing tactic known to greedy corporations...

Imagine that: a company or two with the ability to quickly lower prices to below cost at a moments notice, take on a small bit of profit reduction or loss, destroy your business, then intermediately re-raise their prices on all customers at a moments notice once the competi... er... "threat" has been eliminated.

<sarcasm>No, all is well in the business world.</sarcasm>
--

- "Techie" Jim
openbox9

join:2004-01-26
Alexandria, VA

Re: this is competition?

You're right, competition sucks. Why should we expect anyone else to start competing if it's so difficult to get started?
jimbo2150

join:2004-05-10
Youngstown, OH

Re: this is competition?

said by openbox9 See Profile :

You're right, competition sucks. Why should we expect anyone else to start competing if it's so difficult to get started?
Your half right. Competition does not suck, corporations with power above and beyond competition do! That is what regulation is for. The only difference is that regulation can be done right without destroying businesses but at the same time leveling the playing field and letting competition actually exist without destructive business practices. I don't think that we should break up ma bell again like before but I think regulation to prevent them from shutting out all competitors from using their infrastructure to compete (either wise it will take millions to start) would be nice.
--

- "Techie" Jim
openbox9

join:2004-01-26
Alexandria, VA
·AT&T Southeast

Re: this is competition?

said by jimbo2150 See Profile :

I don't think that we should break up ma bell again like before but I think regulation to prevent them from shutting out all competitors from using their infrastructure to compete
Therein lies the rub. Regulating private business to force them to open their infrastructure to competitors without requiring the competitors to make their own infrastructure investment (millions as you mention) smacks in the face of free market and capitalism IMO. The competition had their chance after 1996. A couple of CLECs began building their own plant, but most did not and now suffer the consequences. Making a successful business requires investment into the business. I may not agree with municipal ISP build outs, but at least they are investing in their infrastructure vice forcing private companies to open their cable plants.

Hangmn
Don't Fight It...It's Inevitable
Premium
join:2000-04-08
Philadelphia, PA

Re: this is competition?

said by openbox9 See Profile :

said by jimbo2150 See Profile :

I don't think that we should break up ma bell again like before but I think regulation to prevent them from shutting out all competitors from using their infrastructure to compete
Therein lies the rub. Regulating private business to force them to open their infrastructure to competitors without requiring the competitors to make their own infrastructure investment (millions as you mention) smacks in the face of free market and capitalism IMO. The competition had their chance after 1996. A couple of CLECs began building their own plant, but most did not and now suffer the consequences. Making a successful business requires investment into the business. I may not agree with municipal ISP build outs, but at least they are investing in their infrastructure vice forcing private companies to open their cable plants.
That's just it the big Telecoms..Like Verizon are SUBSIDIZED by GOVERNMENT and have EXCLUSIVE access to politicians with BILLION DOLLAR LOBBIES...They are a CANCER..rub that
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openbox9

join:2004-01-26
Alexandria, VA
·AT&T Southeast

Re: this is competition?

Thanks for the mature response

I assume you're bringing up the USF when discussing government subsidization? The USF is in desperate need of overhaul...I don't think anyone will dispute that.

Exclusive access to politicians? Hardly....

Hangmn
Don't Fight It...It's Inevitable
Premium
join:2000-04-08
Philadelphia, PA

Re: this is competition?

said by openbox9 See Profile :

Thanks for the mature response

I assume you're bringing up the USF when discussing government subsidization? The USF is in desperate need of overhaul...I don't think anyone will dispute that.

Exclusive access to politicians? Hardly....
What about the BILLIONS in Tax Breaks Bell Atlantic (Verizon) recieved Pennsylvania to have a Fiber network deployed?

»www.newnetworks.com/PRpenn.htm

I know...it gets confusing sometimes with all the interwebz destroying youngsters attention span and all...
--
»davescustompc.com
openbox9

join:2004-01-26
Alexandria, VA

Re: this is competition?

No confusion here youngin'. Yes, it's sad that PA's PUC didn't follow through on holding VZ's feet to the fire.
openbox9

join:2004-01-26
Alexandria, VA
It doesn't cost billions to initiate a business. Start small and expand over time
nasadude

join:2001-10-05
Rockville, MD
·Comcast

said by openbox9 See Profile :

Nothing prevents you from starting a business in any marketplace. I'm sure your potential customers would welcome the additional competition.
I haven't figured out yet how to get that government monopoly stamp of approval that the telcos got when they started.

I don't want to have to worry about failing - that bothers investors.
openbox9

join:2004-01-26
Alexandria, VA

Re: this is competition?

You don't need a government monopoly to get started. If your business plan is sound, it's not impossible to find investors.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
·Verizon FIOS
·Comcast


1 edit

I'm getting less for more.

I don't see how this will work. I'm already paying more and getting less for my money. Verizon dropped my up/down Internet speeds by 5%, raised my cable card fees and still can't get my billing problems right after almost 8 months.
If they decide to charge me even more for what I'm getting, I'll have no choice but to dump them for TV, and lower my INternet tier from the current 50/20(although I can't hit those speeds any more).
I'm getting hit from all sides from Verizon. Even their technical support was clueless when I talked to them last night.

After almost 8 months of this crap, I'm really sick of it.

Bit
Premium
join:2009-02-19
00000

2 edits

Of course they are competing on price

Every time they toss out these limited duration triple play deals, GIVE AWAY NETBOOKS, etc etc etc, they are competing on price.
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darcilicious
Cyber Librarian
Premium
join:2001-01-02
Forest Grove, OR
·Verizon FIOS
·Comcast

Re: Of course they are competing on price

said by Bit See Profile :

Every time they toss out these limited duration triple play deals, GIVE AWAY NETBOOKS, etc etc etc, they are competing on price.
Not for existing customers; those promos are only for new customers.

Last at this time, existing customers got speed upgrades for free (you had to call and ask for them) and most even saved money when switching to a new bundle. This years, switching/upgrading is more likely to cost a customer more money, not less.

Bit
Premium
join:2009-02-19
00000
·VOIPo
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4 edits

Re: Of course they are competing on price

Because they don't have to compete for existing customers.

And at least in Huntington Beach, if they bumped the speed, and you are at an old price in a contract, you don't get it unless you pay the current price. Customers here had the option of staying at the old speeds and cheaper price or getting the upgrade at the current price (this according to my brother who is a FiOS subscriber). He was originally on a $30 1 year contract when they bumped speeds but elected to stay on 5/2 for the duration of his term to keep the old price.

I would prefer this option to just getting slammed with a price increase whether I want the speed bump or not (which is what Cox just did to me).
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HEMIDART68

join:2000-12-13
Huntington Beach, CA

Re: Of course they are competing on price

I'm in HB, I called yesterday and they wanted an additional $20 to go from 20/5 to 25/15. That's with the internet + tv bundle

Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI


1 edit

Re: Of course they are competing on price

Or you have the option of keeping your old price. People see this as a problem but I'm not one of them. With Cox, they just force everyone to take the price increase with the bump in speed.

And as far as price, for those wanting to upgrade, $20 is competitive. Cox OC wants $15 to bump from 9000/768 ($45) to 20000/1500 ($60). So for $5 more than Cox, Verizon offers 25% faster DL and 1000% faster upload. And Verizon's basic tier is nearly as fast as Cox's premium tier and Verizon's basic tier offers more than 3X the upload of Cox's premium tier.

While their marketing department claims otherwise, Verizon is certainly competitive on price. And of course the other Verizon competitor is TWC who is trying their hardest to move to metered billing
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Karl Bode
News Guy
join:2000-03-02

Host:
Road Runner
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Re: Of course they are competing on price

Well they have been trying to compete on price, but pretty clearly the numbers they're looking at seem to suggest it's not necessary for a while going forward. In part because of monopoly or duopoly control -- but also because some cable companies are lagging. Time Warner Cable has yet to announce a single market for DOCSIS 3.0 upgrades...

Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI

Re: Of course they are competing on price

Price per Mb continues to plummet, so they are competing on price. Over 10 years ago my Cox@Home 3000/300 service was $45 (with the ever bitchen Cybersurfr modem). Today, it's $45 for 3X the DL speed. Verizon is also at $45 offering 5X the DL speed. In terms of DSL, Verizon has not only ramped up speeds but cut prices. My business 768/128 DSL used to be $59/mo. I think their latest bottom biz DSL is double that speed and 1/2 or close to 1/2 that price.

Verizon is definitely competing on price including giving away Netbooks and limited term promotions.
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sonicmerlin

join:2009-05-24
Cleveland, OH

Re: Of course they are competing on price

You don't compete on price by raising your prices. Offering a slightly higher tier doesn't require any real effort on their part. Just because people have a little bit faster dl/ul doesn't mean they'll suddenly start using it a lot more and force Verizon to upgrade their network. Basically their increased prices means increased revenue.

The real problem is the only one who has FTTH in those areas in Verizon. Competing with an inferior product like cable isn't really "competing".

Bit
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join:2009-02-19
00000
·VOIPo
·Cox HSI


4 edits

Re: Of course they are competing on price

Verizon didn't raise their price. Customers can upgrade at their option. Meanwhile price / Mb continues to drop with Verizon getting to the $3Mb range on their cheapest tier. Since the roll out, Verizon's base FiOS tier download speeds have increased 300% and upload speeds more than doubled to 5Mb. That is hardly "slightly" higher, it is significantly higher. Even these recent bumps were 50% bumps in DL speed and the UL speed doubled.

Verizon's current intro $45 tier is 15/5, which Verizon competitor offers more than that for less or even comes close and beats the price. Certainly no major cable operator is even close.

Cable could certainly compete if they WANTED to, but they also choose to compete on price, often offering triple play for $99. And FiOS reseller DSL Extreme out here does 10/2 for $39.99 and 50/20 for $100.

What we need is more line sharing. If Verizon can do it and be profitable, all of these providers, telco and cable should be COMPELLED by law to line share.
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darcilicious
Cyber Librarian
Premium
join:2001-01-02
Forest Grove, OR
·Verizon FIOS
·Comcast

Re: Of course they are competing on price

said by Bit See Profile :

Verizon didn't raise their price.
Sure they did. New customers have to pay the RAISED prices. And if you're an existing customer who's bundle/contract expires today, tomorrow or whenever, you have to pay the RAISED prices. And of course, if you want the new tiers, you have to pay the RAISED prices. Flatly stating that Verizon didn't raise their price is misleading at best.

Bit
Premium
join:2009-02-19
00000
·VOIPo
·Cox HSI

Re: Of course they are competing on price

New customers pay current prices. They didn't have an old price to have raised.

All customers with all providers are subject to price increases, it is just a matter of how those price increases are applied. My provider Cox, just forces the price hike to everyone, and there is no option other than to cancel.

At least with Verizon you have stick to your original agreement.

As for misleading, the tier change is NOT AUTOMATIC for ANY existing customer. You have to call VZ at 888-553-1555 and talk to billing to make the change, again, at least here in SoCal.

The tier prices, again, here in SoCal, have not changed. The bottom tier is still $44.99, the mid tier is still $64.99 and the top tier is still $139.95. The only change I see here in Cali is that 20/5 is no longer available but current customers can keep it, again since the upgrades are not automatic.
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N O Y B
St. John 3.16

join:2005-12-15
Forest Grove, OR

said by Bit See Profile :

Because they don't have to compete for existing customers.

Try telling that to Comcast.

Oh yes they do. Comcast may not be first choice, but they are a reasonable choice when talking about the masses. So if the Verizon price difference becomes too unreasonable in comparison, existing customers will flee. Long as there is a reasonable alternative, price matters to customers.

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Bit
Premium
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00000
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Re: Of course they are competing on price

Verizon has most of their customers on 1 to 2 year terms which gives the customer a choice of staying with the current cheaper plan or opting in to the newer pricer tier. Their competitors like Cox, just force the price increase whether the customer wants it or not.
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majortom1029

join:2006-10-19
Lindenhurst, NY

cablevision

The problem is verizons only real competition only exists in the NYC area. Cablevision is the only cablecompany doing a good job of competing.

They see it as the rest of their network can pay for the NYC so they dont have to make the prices better.

Bobcat
Volvo sucks donkey balls
Premium
join:2001-02-04
Bedminster, NJ

Re: cablevision

Verizon: 15/5 for $45
Cablevision: 15/2 for $45

So how is Verizon not competing on price?

--
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majortom1029

join:2006-10-19
Lindenhurst, NY

1 edit

Re: cablevision

They raised their tripple play package price. So yes they are good on internet prices but they raised the price for all three services together.

Bobcat
Volvo sucks donkey balls
Premium
join:2001-02-04
Bedminster, NJ

Re: cablevision

I used a neighbor's address and priced-out FOIS (can't get it here). FIOS TV service has 3 times as many channels for $20 less per month than Cablevision.
--
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RARPSL

join:1999-12-08
Suffern, NY

said by majortom1029 See Profile :

The problem is verizons only real competition only exists in the NYC area. Cablevision is the only cablecompany doing a good job of competing.

In addition, when Cablevision increases the speed on a tier it is automatically done across the board (ie: Old Customers get it also at no charge). They had done such speed increases at least 3 times since I have had them as my provider.

FiOSinVA

@verizon.net

This is the key. The only company offering directly competitive service is Cablevision, and that's only in NYC (which, unsurprisingly, is the one Verizon market with unique pricing tiers that start at a lower entry cost).

Even DirecTV and Dish lag way behind Verizon in HD offerings at this point, and FiOS's triple play is still much cheaper than any TV/Internet bundle from either satellite provider.

Eat Me

join:2002-09-25
Sussex, NJ
·PenTeleData
·Future Nine Corpor..
·VOIPo
·Vonage

It's Verizon

Did anyone really think that Verizon would be the price leader on anything?

Look at their other services - wireless, landline, even business services. They are definitely not the lowest priced.

However, in many cases Verizon's services are much better than what the competition has to offer. In FIOS' case the product is definitely worth more than what they're charging for it.

mod_wastrel

join:2008-03-28
·magicjack.com

Verizon may choose to stop "competing" on price,

but more people than not still buy on price. And while fiber, on the whole, has more capacity than copper (practically speaking), for the most part 10mbps is still 10mbps no matter how it's delivered. I'm not going to pay a premium price just because my 10mbps is delivered over fiber instead of copper. New infrastructure and huge capacity are all well and good, but in the end price is my determining factor. If Verizon forgets this, then customers (those who can, anyway) will look elsewhere for better value (and fewer billing problems).

v35_pilot
Whoops, there goes another AMU
Premium
join:2005-12-12
Fayetteville, NY
·ViaTalk
·Verizon FIOS
·Sprint Mobile Broa..

Is this really a surprise?

As a four year FiOS Internet customer I had a feeling this shoe was going to drop for awhile now.

I definitely agree with others here that it is only their product that is good - customer service (being switched from department to department to get problems resolved), the ability to manage my account over the web, and of course their continued billing issues are their Achilles' heel.

Frink
Professor

join:2000-07-13
Scotch Plains, NJ

Reecent Service Calls

I have to say, my last two contract / pricing calls to Verizon have been leaps and bounds above what things used to be. I was handled professionally and fairly, by the very first person I spoke with. I didn't think it would ever get this good, based on several previous experiences. I think the FiOS effort is really creating change from the ground up at VZ.
Mr Matt

join:2008-01-29
Eustis, FL
·Comcast
·Embarq

The best part about of having Monoplynucleosis.

Why compete. When a company has a monopoly there is no need to compete. Besides with the Cable Cabal attempting to institute metered billing what chance does a subscriber have. Remember Verizon is not Burger King, subscribers have to take it their way or do without (F.O.). The Broadband Weasels need some regulation and price controls.
sphinxguy18
Premium
join:2008-01-13
Garland, TX
·Vonage
·Cox HSI

Verizon FiOS Prices

I think Verizon doing the price hike was a bad call! I mean granted the service is great, but I don't think hiking the price was the smoothest move on their end. They should consider either stop uping the cost for all of these services such as Remote DVR, Online Billing, etc if they are going to start charging more on their bottom line! With today's economy, the cost is more important to me then what I am receiving for it.

Now for the people saying that their Customer Service has gotten better. I guess it has only been my time or something, but everytime I call, all I do is get transferred around like no other! Some of the people are exactly the nicest either, I called the "Billing Department" yesterday concerning the new prices and the guy on the phone (I think his name was John) was a complete jerk about my asking! It's like, look I'm sorry that you got stuck working on a day that Verizon decided to change their prices!

As far as I am concerned, the service itself, meaning the Fiber Service to the home is great! But their customer service department, technical support, and other features they can keep! Especially if they feel the need to up the cost of their service. I hope this comes back and bites Verizon in the butt hard!

LeftOfSanity

join:2005-11-06
Felton, DE

OH NOES!

Oh great and powerful FiOS,say it isn't so!!!!!

You were to be the "one" isp to rule them all.

The great messiah of the internet. All who sang your praises must now lurk in the shadows, or eat their words. You were to never raise your prices.........

Gary A

join:2008-03-02
Odessa, FL
·Embarq
·Verizon FIOS

Price Increase

It was immediately apparent to me in Florida that these new bundle prices were a thinly vailed price increase for us with only nominal upgrades in internet speed and TV HD channels. For me to upgrade would have cost an additional $25 per month. My current 2-yr agreement runs out in Sept of this year, so until then, I'm not upgrading... not in this economy.
Buglewe

join:2006-08-30
Brooklyn, NY
·Verizon FIOS

Re: Price Increase

said by Gary A See Profile :

It was immediately apparent to me in Florida that these new bundle prices were a thinly vailed price increase for us with only nominal upgrades in internet speed and TV HD channels. For me to upgrade would have cost an additional $25 per month. My current 2-yr agreement runs out in Sept of this year, so until then, I'm not upgrading... not in this economy.
So I guess you will be switiching from fios because when your contract runs out you will go month to month which will cost you a lot more than you are paying now.

Gary A

join:2008-03-02
Odessa, FL
·Embarq
·Verizon FIOS

Re: Price Increase

said by Buglewe See Profile :

said by Gary A See Profile :

It was immediately apparent to me in Florida that these new bundle prices were a thinly vailed price increase for us with only nominal upgrades in internet speed and TV HD channels. For me to upgrade would have cost an additional $25 per month. My current 2-yr agreement runs out in Sept of this year, so until then, I'm not upgrading... not in this economy.
So I guess you will be switiching from fios because when your contract runs out you will go month to month which will cost you a lot more than you are paying now.
I will have a decision to make in Sept., based on the pricing at that time, yes. My triple play is currently $94.99. The month-to-month price would jump to $132.97 (today's price). The "Better" bundle would cost $119.99 (today's price). Or, I could go back to Brighthouse cable. I will just have to monitor the prices and then decide.
kb_019

join:2008-11-28

Time For A Reality Check...

To all Verizon customers this is a wake up call.

Many hail Verizon as the saving grace against the evil cable empire.

It is time you realize that although Verizon service may be superior to cable the following is reality:

1> Verizon will not compete on price.
As I expected they will position their advertising focus simply touting superior service.

2> If and when the cable industry pushes metered billing to the masses you can bet that Verizon will follow shortly thereafter...

sholling
Premium
join:2002-02-13
Hemet, CA


1 edit

They've Never Competed On Price

I've had several meetings with Verizon managers over the years and they have always made one thing perfectly clear - at the consumer level Verizon does not compete on price. They consider price wars a losing proposition. Verizon's policy as an ISP and cellular provider been to be the premium priced option with a better product.

Verizon has drifted from their general policy only because they are so new at television that they needed to lure new customers into dropping cable TV. Don't expect them to be cheaper than cable for long. Just like their prices for an Internet connection are going through the roof at a time when their costs are going down, their price for television services will eventually drift up to match the highest priced competitor in each area.

They have a monopoly or near monopoly on Internet services in nearly every area that they do business. When you buy FIOS they disconnect your copper so that you can't switch to DSL. And let's face it Cable companies are so clueless that they are looking at caps and ripping off their customers as a business model. Verizon has no competition and will charge whatever they like and keep raising prices.
--
"Government is the great fiction, through which everybody endeavors to live at the expense of everybody else."
--FREDERIC BASTIAT--

N O Y B
St. John 3.16

join:2005-12-15
Forest Grove, OR

Re: They've Never Competed On Price

Would you care to know what another losing proposition is? Overhead without revenue.

Better products/services can only take a company so far. There comes a point at which demand for a better product/service begins to shrink. i.e. no need for the masses.

Drifted from policy to lure new customers. Sounds like price competition to me. And if need be they with do the same to keep customers. Otherwise they will be in the losing proposition of overhead without revenue, just like Comcast is facing now in FiOS areas.

--
Be a Good Netizen - Read, Know & Complain About Overly Restrictive Tyrannical ISP ToS & AUP »comcast.net/terms/ »verizon.net/policies/
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sholling
Premium
join:2002-02-13
Hemet, CA

Re: They've Never Competed On Price

said by N O Y B See Profile :

Would you care to know what another losing proposition is? Overhead without revenue.

Better products/services can only take a company so far. There comes a point at which demand for a better product/service begins to shrink. i.e. no need for the masses.

Drifted from policy to lure new customers. Sounds like price competition to me. And if need be they with do the same to keep customers. Otherwise they will be in the losing proposition of overhead without revenue, just like Comcast is facing now in FiOS areas.
That's how you and I see it but it's not how they see it. Look at their cellular business. They have the highest prices and compete solely on their "network" and they are growing.

On the ISP side they have either a monopoly or a duopoly in nearly every one of their markets. Even the small ISPs are merely reselling Verizon's products. With clueless cable companies pushing caps and jacking up prices then Verizon can charge whatever they like as long as they keep a cheap economy tier for those uninterested in performance. The funny thing is that they have been booking fiber rollout subsidies as additional profit for 30+ years and now that they are actually making the investment they expect to be able to gouge the public that already paid for the rollout through subsidies. That takes solid brass goodies the size of basketballs - a telecom industry specialty.
--
"Government is the great fiction, through which everybody endeavors to live at the expense of everybody else."
--FREDERIC BASTIAT--

N O Y B
St. John 3.16

join:2005-12-15
Forest Grove, OR

Re: They've Never Competed On Price

"Verizon can charge whatever they like as long as they keep a cheap economy tier for those uninterested in performance"

Again, sounds like competing on price to me. And no they cannot charge whatever they like. There is a point at which customers will say the product/service is not worth the extra cost compared to competitors. They do have to keep the value reasonably close to that of competitors or people will jump ship. Part of the value equation is price.

--
Be a Good Netizen - Read, Know & Complain About Overly Restrictive Tyrannical ISP ToS & AUP »comcast.net/terms/ »verizon.net/policies/
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sholling
Premium
join:2002-02-13
Hemet, CA

Re: They've Never Competed On Price

said by N O Y B See Profile :

Again, sounds like competing on price to me. And no they cannot charge whatever they like. There is a point at which customers will say the product/service is not worth the extra cost compared to competitors. They do have to keep the value reasonably close to that of competitors or people will jump ship. Part of the value equation is price.

What competitors would those be? In most areas they either have a monopoly or a duopoly. Competition does not become a factor until the consumer has at least a half dozen viable choices. Look at cellular. They all doubled the price of text messaging within hours of each other. That's because there are really only 4 choices in most markets.
--
"Government is the great fiction, through which everybody endeavors to live at the expense of everybody else."
--FREDERIC BASTIAT--

Lee GWB
Yaco
Premium
join:2001-10-13
Allendale, NJ

Price does matter

However for the $10.00 increase I get Showtime and 25/15 internet. So is it really an increase? I know I am not the sharpest tool in the shed
Lee
guppy_fish
Premium
join:2003-12-09
Lakeland, FL
·Verizon FIOS

I like the Aston Martin

Bright House ( local cable co ) doesn't cost less, has less HD, slower internet and a phone that's not POTS reliable and movie packages cost more.

So if paying 10 bucks more for another 2 year lock, getting close to 10X the upload bandwidth, about 70 more HD channels and a rock solid POTS phone means I'm in high society driving the Aston Martin, so be it ... works for me

Gary A

join:2008-03-02
Odessa, FL

Re: I like the Aston Martin

I could probably swallow a $10 increase, but in my case it would be a $25 increase. No thanks.

FastiBook

join:2003-01-08
Newtown, PA
·Verizon FIOS

Prices are supposed to go down over time...

If our bill goes up we will be most displeased. What's the point of having fios if all the sudden good prices go up? I don't want comcast, but what the hell vz... They will see slower growth with this tactic. Lame.

Posted from my iPhone.

- A
--
LETS GO METS!

LeftOfSanity

join:2005-11-06
Felton, DE

Re: Prices are supposed to go down over time...

said by FastiBook See Profile :

If our bill goes up we will be most displeased. What's the point of having fios if all the sudden good prices go up? I don't want comcast, but what the hell vz... They will see slower growth with this tactic. Lame.

Posted from my iPhone.

- A
Did you really think they wouldn't raise prices?

Posted from my dEsktop
cahusker

join:2005-05-19
Westminster, CA

Re: Prices are supposed to go down over time...

Will they stop? What if my contract is up with them. I call and say I would like to cancel. Do they just say ok or will they ask why and offer something a little better? I think the later. They have spent a lot of money to run fiber to my home and if they lose all service they make nothing. I think they would be happy to match a competitors rate if I stay.

JohnB Dallas

@verizon.net

Verizon FIOS triple pkg: 1 year and counting

In north Texas we are paying $109 for triple play. We have 20/5 internet speed and the "HD Extreme" TV service. Now, by the time we add in the Media HD DVR, 2nd receiver box and all of the misc. taxes, we are paying approx. $185. Service has been rock solid and flawless for a year.

It's a decent value and is actually a bit cheaper than what we were paying before with Dish Network, DSL and POTS with no long distance.

We could probably stomach a bit of a price increase, but... METERED BILLING??? I shudder at the thought. That would be a nightmare! Please, Verizon, NOT METERED BILLING!!!
sonicmerlin

join:2009-05-24
Cleveland, OH

Re: Verizon FIOS triple pkg: 1 year and counting

Ya know in South Korea you can get triple play for $25 equivalent/month. $200/month is hardly a decent value from an absolute sense.
visuelz

join:2003-05-01
Brooklyn, NY

20/20 to 35/20

I upgraded to 35/20 and got 35/35 on the test..I like

Agent Smith

join:2008-07-07
New York

Re: 20/20 to 35/20

In NY 35/20 for some is 35/35 and 25/15 is 25/25 for some.
visuelz

join:2003-05-01
Brooklyn, NY

Re: 20/20 to 35/20

Really?! That's so awesome!!!!

Agent Smith

join:2008-07-07
New York

Re: 20/20 to 35/20

»www.speedtest.net/result/502257975.png

thats 35/20 but really 35/30 for some depends what you will get.
visuelz

join:2003-05-01
Brooklyn, NY

Re: 20/20 to 35/20



I got this....is this 35/35?

Agent Smith

join:2008-07-07
New York

1 edit

Re: 20/20 to 35/20

Yea exacly you got the fluff heck better paying for extra for it.
Forums » Verizon Stops Seriously Competing On Pricepage: 1 · 2


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