Verizon's FiOS ETF: $360 Starting January 17
Verizon only acknowledging 'changes' coming...
by Karl Bode 09:44AM Wednesday Jan 06 2010 Tipped by cpumodem
As we mentioned recently
, Broadband Reports obtained documents highlighting how Verizon was planning to impose a slew of new rate hikes on FiOS customers starting on January 17. Verizon FiOS customers should shortly be receiving word that Verizon's FiOS TV packages will be revamped slightly, with several of them seeing price hikes ranging from $10 to $20 a month. More notably perhaps is the fact that Verizon will also be raising the FiOS early termination fee (ETF) to $360 -- up from $179 in 2009 for a two year contract, and $149
back in 2007.
Bob Fernandez over at the Philadelphia Inquirer
cites Broadband Reports and also checks in on the new fee. Fernandez notes that Verizon isn't willing to comment on the new fee, but does acknowledge that it plans to make pricing changes starting January 17.
Verizon spokesman Richard Young late yesterday declined to comment, other than to say that the company could alter its plans for the early-termination fee and other changes by Jan. 17. . . Verizon secured from Philadelphia City Council a 15-year cable-TV license in 2009. The telecom giant has said early-termination fees cover the cost of installing FiOS - $500 to $600 per customer.
Of course the money you pay Verizon every month
also helps cover the cost of the install, which, unlike your ETF, has dropped significantly since 2007 as fiber to the home hardware and technology gets cheaper. As in the wireless sector, one problem is that while the ETF is pro-rated so it is reduced every month -- the ETF is never fully paid off over the length of your two-year contract. The documents also indicate that in contrast to previous Verizon policy, you will incur the ETF should you move to an area not served with Verizon FiOS.