Home » Broadband Speed »Cablevision »Comcast/Xfinity »Competition »Consumer News »Time Warner Cable »Verizon » Currently Reading:

Competition Breather: Verizon FiOS Rate Hikes Ease Pressure on Cablevision, TWC

Verizon customers can expect to pay more for the company’s fiber to the home service, FiOS, even as promised higher speeds arrive.

Most customers off contract can expect to pay $10-15 more a month under the new pricing regime, or cut back on selected television channels to keep their price the same. Verizon customers currently on a promotional offer will not see any price changes until their promotion expires.

Wall Street analysts call Verizon’s rate hikes a return to “pricing rationality.” The phone company has engaged in years of aggressive pricing, promotions, and rebate offers, especially in the northeast. At one point, Verizon was offering New York-area customers up to $500 in rebates when signing up for a triple play Verizon FiOS package. As Verizon pulls back from aggressive promotions, some analysts predict cable competitors Time Warner Cable and Cablevision will be able to resume more typical rate increases common before Verizon FiOS launched. Cablevision previously announced it would not increase rates during 2012, mostly in response to Verizon’s aggressive pricing.

Verizon has significantly boosted speeds on most of its broadband offerings, with the exception of its standard entry-level 15/5Mbps package, which remains unchanged. Verizon is hoping customers will find that entry level package less and less attractive and be amenable to upgrading to faster speed service at a higher price.

“We’re expecting that 80 percent of customers will want more than 15 megabits per second,” Arturo Picicci, Verizon’s director of product management told Reuters.

Under Verizon’s new pricing, triple play customers with unlimited calling, 15/5Mbps broadband, and 290 television channels pay $109.99. The next step up, for $15 more a month, would upgrade broadband to 50/25Mbps service.

Verizon is also shaming New York area cable operators with speed increases that Time Warner and Cablevision currently cannot match.

The company’s 150/65Mbps service is now priced at $99.99 a month, down from $209.99. Customers in some areas can also sign up for 300/65Mbps service for as low as $204.99 with a two-year contract.

In contrast, Comcast charges $200 a month for 105Mbps, Cablevision prices its 101Mbps service at $104.95 a month.

Search This Site:

Contributions:

Recent Comments:

  • fndjdkdkdkj: I don't see any value in god damn TV only to watch 20minutes of Ads ever god damn hour. I cut the cord long ago and have zero intention of ever going ...
  • Rod: But it's not a better value proposition if you simply don't want cable tv or landline. What's the value in paying an extra $25 dollars a month for so...
  • Matt Larsen: For $1500 and the cost of plane tickets to Seattle, I will get this guy service at his house so he doesn't have to sell it. A WISP will find a way t...
  • Charles Dennett: I have a question or 2. Just got my first bill without the previous promotional price. Preferred TV with standard Internet is now 109.99, I assume ...
  • John M. Gillespie: Write the West Virginia Public Services Commission, Consumer Advocate Division, regarding complaints regarding utilities. If that doesn't work write ...
  • John M. Gillespie: Cuju you apparently aren't understanding the problem. Great for you living not far away in Falling Waters and having Comcast. What does that have to...
  • Kimberly S Moore Prescott: I went into AT&T to upgrade my husbands phone to a new Samsung and we were offered a free Galaxy Tab 4 with the purchase. I instructed to employe...
  • Amanda: WOW! This article is amazing. My contract is ending next week and my bill was going to go up $60/month. I looked around and found a good deal from Med...
  • Paul Houle: It is more complex than that. It is underreported that Time Warner Cable and Comcast represent radically different visions of the future. Time W...
  • Limboaz: I suppose they believe the cable cartels are a benefit to California which is home to a really big chunk of the entertainment industry and directly be...
  • chase: Just un f**ing believable... They're national average is 1gb now going to 10gb... And we're still being sold how grand 25mbs is. With only a handful...
  • Paul Houle: I think some of the government organizations are delaying it because they are just trying to stretch it out until Comcast gives up. It is a lose/lo...

Your Account: