Home » Broadband Speed »Cablevision »Comcast/Xfinity »Competition »Consumer News »Time Warner Cable/Spectrum »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:

  • Paul Houle: My take is that a "wireless recession" will soon be at hand. There are a number of stories talked about on this site that, I think, are connected w...
  • Keanyn Gray: frontier every month for the last 8 month for incorrect bills amounts, each time they tell me they will correct credit my bills to the agreed amount ...
  • JayS: Channels, before they were removed from Tv and used to start the cellular telephone networks, went up to 83. Due to technology limitations, UHF (...
  • Josh: As near as I can tell we've had broadcast TV spectrum stolen from us TWICE. (Once during the NTSC to ATSC transition, but apparently once before that...
  • Phillip Dampier: The retention staff in Syracuse actually stopped handling those types of calls in early 2016 and referred everyone to the national customer retention ...
  • T Nelson: I am a Twc customer in the Rochester, NY area. In November my special promotion program ran out. In the past I had dealt with a retention specialist...
  • Milan Gohil: Thank you for publicizing my ordeal, Phillip! I hope this report opens the eyes of consumers and Spectrum executives!...
  • LG: They should be taken into Federal receivership. They only care about cell phones, so we need to take that away from them. Make it a requirement to m...
  • Joe V: Six months ago I moved from San Francisco to southeastern Massachusetts 30 miles south from Boston. It is pathetic that on one side of my town they ...
  • Matt K: Does that 23% on fiber count only true FTTH or are they also counting crap like AT&T's Uverse?...
  • Ralph: Hmmm... this sounds like prime territory and infrastructure for Frontier to purchase. They've already got years worth of excuses and promises they co...
  • Josh: "Brilliant" move guys. I'm suuuuure THIS cable company with a record of screwing over their employees will be the good company that's out for your in...

Your Account: