Broadband Reports has obtained documents accidentally publicly posted outlining some significant changes to how Verizon markets and prices its fiber optic to the home FiOS service.

Most customers can “look forward to” price hikes of $10-20 for their FiOS bundled service package January 17th, if the leaked documents are accurate.  The company will also replace its “TV Essentials” package and bring back symmetrical broadband service options (same upload and download speeds), according to Broadband Reports.

More concerning is the introduction of a uniform $360 early termination fee for customers who sign up for broadband or television service from Verizon and decide to switch providers.  Although the fee will not apply if customers agree to stay with Verizon for their home phone service, the justification for such a high charge will be open for debate.  The company promises to pro-rate the fee for every month a customer does stay with FiOS, but according to the report will impose it against a consumer that finds themselves having to relocate to a non-Verizon service area.  For someone in western New York between Buffalo and Rochester, a move just down the street into Frontier Communications territory could result in a final Verizon bill several hundred dollars more than expected.

Currently, Verizon charges broadband customers on an annual contract a $99 early termination fee.  Television customers pay a $179 fee if they cancel before the year is up.

Some customers reacting to the cancellation fee suggest opting for the month-to-month service plan for an additional $20 a month if a move is imminent or if a customer isn’t sure they’ll keep the service.

Early termination fees are designed to capture and hold customers in place and are common in competitive markets where consumers bounce back and forth between new customer promotions.  Locking a customer in with a multi-year service agreement makes promotion-bouncing expensive, and gets customers to think twice before switching providers.

Verizon’s pricey exit charge could also reflect the company’s desire to recoup wiring expenses to bring fiber to and inside customer homes.

Most Verizon FiOS promotions we’ve seen lately expire January 16th.  That would suggest promotions starting the 17th will carry higher pricing.

A late December 2009 Verizon promotion. Note the expiration date.

Karl Bode notes the price hikes come even though costs are declining for major providers.

Keep in mind of course that these broadband hikes come as the cost of wholesale bandwidth and network hardware continues to drop. The television hikes, meanwhile, come despite the fact that Verizon and AT&T lobbied state lawmakers in dozens of states promising lower TV prices — if they were willing to reconfigure the video franchise system to make life easier on the baby bells.

It also appears that Verizon will be further expanding their free Wi-Fi offer to include customers on 15 Mbps tiers. The service previously was restricted to FiOS customers that subscribed to 20 Mbps service or faster. Like speed? It looks like Verizon’s symmetrical 35 Mbps tier, which is only available in select markets, will be showing up in all Verizon markets next year. The company’s 25/15 Mbps tier will officially become 25/25 (most customers report those speeds already).