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story category No, Your FiOS Rates Aren't Rising
Letter accidentally bewilders users under contract...
(old news - 01:20PM Tuesday Aug 28 2007)
tags: prices · Fiber · business · telco · bundles · Verizon FIOS
If you're a Verizon FiOS customer, you may have received this letter that warns you that your current FiOS rates will be rising. The letter informs customers that their rates will be bumped up as of October 1, something that understandably worried existing customers currently under contract:
Click for full size
As it stands, Verizon should have been more clear. A forum user clarifies (and we've confirmed with Verizon) that the letters were intended to remind users they'll need to sign new contracts to retain current pricing, or they'll be bumped to month-to-month rates. While there will be no rate hikes, the company did make some billing changes:
"Verizon has eliminated the no-contract, month-to-month bundle discounts. Now there is a single $5/mo bundle discount for committing to one-year of Internet and TV. There is a larger discount for the 'triple play' (Internet + TV + phone) two-year commitment. In some markets, Verizon also offers TV + 5/2 Internet for $70/mo with a two-year contract."
As we explored recently, billing/customer service is probably the FiOS service's only real weak spot at this point. While the letter may have freaked customers out unintentionally, at least they gave this website a plug on page two.

Related:
  1. Verizon Raising FiOS Prices Again Soon
  2. Verizon Confusing FiOS Customers Under Contract
  3. 50Mbps, 20/20Mbps FiOS Tiers Hit All Markets
  4. Thursday Morning Links
  5. Thursday Evening Links
  6. Verizon Bringing Internet Video To FiOS TV
  7. Monday Evening Links
  8. Wednesday Evening Links
Forums » No, Your FiOS Rates Aren't Rising
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Post a:
Raydr
Premium,MVM
join:2000-11-19
Miami, FL

Hmm...

This was obviously written by someone who is new at writing customer communications - and then not properly reviewed.

An unclear memo - a long link to a 3rd party website....

Ooops. At least we know they're probably a member of DSLR...

en102
Canadian, eh?

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

Re: Hmm...

I would tend to agree.. Regardless of if this was written by a rookie, communications (especially those that would go to customers) typically have to go through some sort of management approval process.
--
Canada = Hollywood North

KoolMoe
Aw Man
Premium
join:2001-02-14
Annapolis, MD
clubs:
·Speakeasy

Only real weakspot?

I dunno...maybe in regards to the net access portion...but bring TV into 'the picture' and there are a whole lot of weakspots.

Its great to have some additional competition and the picture quality of FiOS is very nice, but they are obviously not experienced TV folks. Comcast's TV services blow VZ away...

I am currently a FiOS TV subscriber for at least 9 more months and, while I appreciate the lower price, I miss some Comcast features and may well go back. Will see...
KM
--
Don't Lie - Be Kind - Realize your Potential

Ream0

@rr.com

More Verizon Hype

I look forward to seeing three or four VeriZon bullshit Reports here at BBR!

I can't see why a small crap company is getting all the ballyhoo.

S_engineer

join:2007-05-16
Chicago, IL

Re: More Verizon Hype

Small company???...."Verizon currently has 140.3 million land lines in service" plus "Verizon, with MCI, was the largest telecommunications company in the United States based on sales of $75.11 billion, profits of $7.4 billion and assets of $168.13 billion"

you're kidding, right?
--
Burn a tire, but make sure you buy that carbon offset!

S_engineer

join:2007-05-16
Chicago, IL

Re: More Verizon Hype

sorry, this was just before the ATT & bellsouth merger...so they're a little smaller than ATT
--
Burn a tire, but make sure you buy that carbon offset!
Sammer

join:2005-12-22
Pittsburgh, PA
The FTTH technology deserves the hype. After purchasing BellSouth, AT&T (previously SBC) is now the largest telecommunications company in the United States, but billing/customer service isn't exactly their strong suit either.

wishera

join:2000-12-12
Everett, WA
·Comcast

What is the hubub?

They just buried fios down our street a couple months ago and now we are getting the ads in the mail. The internet is $5 more than Comcast, and they are already overpriced. They always want to bundle it with landline telephone, which we don't have or want. It doesn't look like the tv part is any cheaper either. Why should I switch?
--
Douglas Adams: "Anyone who is capable of getting themselves made President should on no account be allowed to do the job."

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
·Verizon Online DSL

Re: What is the hubub?

said by wishera See Profile :

They just buried fios down our street a couple months ago and now we are getting the ads in the mail. The internet is $5 more than Comcast, and they are already overpriced. They always want to bundle it with landline telephone, which we don't have or want. It doesn't look like the tv part is any cheaper either. Why should I switch?
You shouldn't because you would lose your employee discount.

wishera

join:2000-12-12
Everett, WA

Re: What is the hubub?

What do you mean? You think I am a comcast lackey or something? I said Comcast was overpriced too. I have Dish for TV.

wishera

join:2000-12-12
Everett, WA
what are you talking about?

GeekNJ
Premium
join:2000-09-23
Waldwick, NJ
·Verizon FIOS

said by batterup See Profile :

said by wishera See Profile :

They just buried fios down our street a couple months ago and now we are getting the ads in the mail. The internet is $5 more than Comcast, and they are already overpriced. They always want to bundle it with landline telephone, which we don't have or want. It doesn't look like the tv part is any cheaper either. Why should I switch?
You shouldn't because you would lose your employee discount.
Why don't you disclose your vested interest in telcos when you make a remark like that?
--
Tweaked your connection? | Mail Parse | Speed Converter
dymyninc

join:2007-09-16
Little Neck, NY

Re: What is the hubub?

The hub bub is free on demand on all your channels. who does that? the internet is so much faster - i can now see streaming videos without hicups- and a dedicated line to your home that you dont share with your neighbors- hence no pixilation- no buffering- ever! less opportunity to hack into . just ask any one technologically informed and they will explain the difference in getting a signal that remains digital- transmitted over glass- to a signal transmitted on copper that has to be transformed into radio waves in order to be seen by the end user.

GeekNJ
Premium
join:2000-09-23
Waldwick, NJ
·Verizon FIOS

Re: What is the hubub?

said by dymyninc See Profile :

The hub bub is free on demand on all your channels. who does that? the internet is so much faster - i can now see streaming videos without hicups- and a dedicated line to your home that you dont share with your neighbors- hence no pixilation- no buffering- ever! less opportunity to hack into . just ask any one technologically informed and they will explain the difference in getting a signal that remains digital- transmitted over glass- to a signal transmitted on copper that has to be transformed into radio waves in order to be seen by the end user.
Sounds like a lot of textbook theory vs real world practicality.

First, what on demand are you streaming from that is free?

Second, your FIOS Internet connection is NOT dedicated. It is shared with 32 other potential FIOS users and that is before it gets to the CO where it is shared with 100's/1000's of others as it streams onto the public Internet.

Thirdly, I often see buffering when viewing videos. There are multiple factors that contribute to it. Typically it won't be your local connection, but that's just a bit of what is between you and the streaming server. There's congestion at the server, congestion on the links between you and the server, and the streaming technology itself. I actually notice more buffering with FIOS then I did on my CV 10mb connection and I think it's because the streaming server is determining the speed at which to serve the content (buffering behind the scenes) and it detects the FIOS connection to be faster then it is and I see it starting quickly but needing to buffer because the streaming server though the connection was quicker then it is. I'm sure over time, the streaming servers will get better at this.

I NEVER see buffering watching OnDemand. And, I don't need a computer in the bedroom if I want to watch OnDemand there.
--
Tweaked your connection? | Mail Parse | Speed Converter

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

said by wishera See Profile :

They just buried fios down our street a couple months ago and now we are getting the ads in the mail. The internet is $5 more than Comcast, and they are already overpriced. They always want to bundle it with landline telephone, which we don't have or want. It doesn't look like the tv part is any cheaper either. Why should I switch?
Only VZ isn't pulling crap with bit torrent, have caps that vary by area and the biggie theres a max of 32 subs on a fios node with 622mbps down/155mbps up vs. god knows how many on a cable node with 38mbps down and 10mbps up.
FIOS vs. anything is a no brainer
--
You can never be too rich, too thin or have too much Bandwidth

GeekNJ
Premium
join:2000-09-23
Waldwick, NJ
·Verizon FIOS

Re: What is the hubub?

said by dvd536 See Profile :

FIOS vs. anything is a no brainer
I'm a satisfied FIOS customer. There is more to many folks then just pure speed and as much as possible. Verizon has even shown this themselves by providing multiple tiers of service. To many, the cost of the service is just as or more important then how much bandwidth they have. Price is not a no brainer with FIOS. Typically, switching providers or negotiating with them (threatening to cancel) will yield a lower price.
--
Tweaked your connection? | Mail Parse | Speed Converter

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
·Verizon Online DSL

Re: What is the hubub?

said by GeekNJ See Profile :


To many, the cost of the service is just as or more important then how much bandwidth they have.
NetZero is free.
SD6

join:2005-03-26

It's the bottom line that counts

Even if Verizon is merely "discontinuing a bundle discount" for month-to-month accounts, as far as I am concerned that is raising rates because the bottom line price that customers pay will increase if they do nothing.

To say that it's not a price increase because you can convert to an annual contract is not correct IMHO. Annual service contracts are different than going month-to-month.

Sammer

join:2005-12-22
Pittsburgh, PA

Re: It's the bottom line that counts

said by SD6 See Profile :

Even if Verizon is merely "discontinuing a bundle discount" for month-to-month accounts, as far as I am concerned that is raising rates because the bottom line price that customers pay will increase if they do nothing.

To say that it's not a price increase because you can convert to an annual contract is not correct IMHO. Annual service contracts are different than going month-to-month.

You're right SD6, it's a price increase for month to month customers and the competition (cable companies) still doesn't require a contract!
KenAF

join:2006-01-23
Arlington, VA


edit:
August 28th, @03:26PM

said by SD6 See Profile :

Even if Verizon is merely "discontinuing a bundle discount" for month-to-month accounts, as far as I am concerned that is raising rates because the bottom line price that customers pay will increase if they do nothing.

To say that it's not a price increase because you can convert to an annual contract is not correct IMHO. Annual service contracts are different than going month-to-month.
Keep in mind those bundle discounts for month-to-month (no commitment) subscribers were actually discontinued -- as an option in the Verizon system -- late last year. Customers who signed up for month-to-month (no commitment) in 2007 don't have those bundle discounts.

I'm not sure why Verizon allowed existing month-to-month (no commitment) customers to retain that bundle discount for the past eight months. Now all customers must commit to a year of service to retain those rates.
Sammer

join:2005-12-22
Pittsburgh, PA

edit:
August 28th, @03:37PM

Re: It's the bottom line that counts

Anyone whose had FiOS for over a year should get the bundle discount. Making customers sign a new contract every year or two is just being a pain in the butt!
littlebird

join:2004-01-25
Carlisle, PA

Re: It's the bottom line that counts

My 1-year FiOS anniversary is next month, so based on this Verizon letter, I called Verizon Billing. After a 23 minute wait on hold, I was told the best deal was the $69.99 Unlimited Calling/FiOS Internet with a 2-year commitment. I would lose my 3-way-calling, but gain voice mail, which I said to didn't want. The person I finally talked to was pleasant and seemed knowledgeable. So the whole process took approximately 35 minutes to change to this 2-year package.

I immediately get 2 emails from Verizon stating that if I don't sign on to verizon.net/acceptfiosterms and agree to the terms, I would be billed the month-to-month fee starting with the next bill. I tried with IE and FF and got server errors, page unavailable and/or page not found.

So I call Verizon again, since I thought that agreeing on the phone was all that was necessary. It wasn't like I was a new customer. Another 20 minute wait and this time I got a very ignorant, rude person who didn't want to be bothered. He said I should call billing (which is what I thought I had) and have them send me to paper work to get FiOS and then I was disconnected.

So I call back again and after 12 minutes on hold I get another "nice" person who listened to everything I had to say about this problem. She put me on hold for about 5 minutes and came back and said that, since I was already a Verizon FiOS customer and was just changing my package, I could ignore the email, my billing change was in place and I didn't need to do anything else. How do I know if this is true?

This process started at 12:10PM and I was finally finished at 3:25PM. This is totally inexcusable. And on top of that, I'm not even sure I am really getting what I want in so far as what is included in the bundle.

Yes, I agree that calling to renew anything is pure torture. Is there any way around all this hassle every time I try to deal with Verizon? For me, dealing with Verizon has always been the most unpleasant experience I ever have with any company I have to deal with.

Yes, this is a rant. And I deserve to rant after wasting a whole afternoon and not even knowing if I will have to go through all this again, when my next bill is wrong.

Bird
dlr_graph

join:2002-02-03
Elizabeth, NJ

Re: It's the bottom line that counts

It appears that you enjoy this "high quality" customer service. There has to be other options in your areas aside from Verizon. Change your services to a better provider if this is an option.
tmc8080

join:2004-04-24
Floral Park, NY

said by KenAF See Profile :

said by SD6 See Profile :

To say that it's not a price increase because you can convert to an annual contract is not correct IMHO. Annual service contracts are different than going month-to-month.
Keep in mind those bundle discounts for month-to-month (no commitment) subscribers were actually discontinued -- as an option in the Verizon system -- late last year. Customers who signed up for month-to-month (no commitment) in 2007 don't have those bundle discounts.

I'm not sure why Verizon allowed existing month-to-month (no commitment) customers to retain that bundle discount for the past eight months. Now all customers must commit to a year of service to retain those rates.
Yes, a price increase in disguise.. which is to say, if a cable company is offering better terms of service.. such as cablevision's $29.95 triple play deal, it's quite possible customers would jump on that instead, even if FIOS is available.

Billing irregularities, long hold times, and other issues should give current or potential customers pause about considering Verizon as their choice. I haven't seen anything positive out of Verizon lately except new FIOS deployments-- if you see anything let me know..

The power of fiber, with the cholesterol of a cable company.
SD6

join:2005-03-26

said by KenAF See Profile :

I'm not sure why Verizon allowed existing month-to-month (no commitment) customers to retain that bundle discount for the past eight months. Now all customers must commit to a year of service to retain those rates.
Why? Just a guess - maybe because removing the discount increases the bottom line that customers would have to pay, and you lose some customers when you increase prices.
GMFTECH
Premium
join:2007-08-24
Wesley Chapel, FL


edit:
August 28th, @05:44PM

Why contracts!!!

When did we let ourselves get bullied into signing a "contract" for everything. The only reason for contracts is to give them a warm and fuzzy feeling that no matter how long you listen to lame commercials or jazz music on hold waiting for customer service you will have to pay a penalty to go somewhere else. It is a win win! They don't have to try harder or even compete anymore. I am currently on hold as I write this waiting to figure out the renewal terms of my service. I don't have a phone service with Verizon so that will be the first battle I will wage and then we will go from there. But I am on hold now for 85 mins.

The shame is the product is rock solid in my opinion. Billing and customer service related to packages and sales are the weak point. Customer service regarding how the service works and fixing something is quite good. Still on hold over 105 mins now......

Ok after over 2 hours on hold. No kidding thank God for speakerphones.

What I was paying:

FiosTV $39.95
STB $ 3.95
HDDVR $12.95
STB (included in package) -$ 3.95

FiosInternet 15/2 $44.95
(one year contract w/TV disc) -$ 5.00

What I was offered because Florida offerings are changed.

FiosTV service is unchanged as far as I can tell

FiosInternet 15/2 no longer offered in FL

Please choose upgrade to 20/5 for $54.99
or
Downgrade to 10/2 for the same as b4 $44.99

Anyone from Verizon out there think this sounds right. I would love to engage someone at Verizon about their pricing and packages.

GMFTECH
moonpuppy

join:2000-08-21
Glen Burnie, MD
·Verizon Online DSL

Re: Why contracts!!!

Contracts are like a guaranteed flow of money. They can count on you (the customer) to send them money for the next 12 to 24 months. During that time, they can do what they want. About 2 months before the contract ends, they come back asking you again to commit to them for another long term deal. If not, they need a bit more of your money to make sure they get something out of it.

Even the cell phone companies are doing cheaper prices on phones if you get a 2 year instead of 1 year contract. Thing is, it is easier to switch at the end of a cell phone contract than it is with a cable TV contract.

It almost seems like a game of one-upmanship between the cable companies and telcos on how they can screw over the customer.
djweis

join:2006-04-02
West Des Moines, IA

Re: Why contracts!!!

Contracts result in lower monthly prices for the customers. I work for an ISP that offers free installation and a free modem for our DSL customers. By the time we get done on the first day of a customer being online with us we've invested $100-250 in them and not brought in any revenue. There is no way to stay in business and spend that much money to obtain and connect a customer that is paying $30 per month without knowing they will stay on.
moonpuppy

join:2000-08-21
Glen Burnie, MD

Re: Why contracts!!!

Are you saying that every customer gets a brand new modem? Even the cable companies that rent modems recycle them.
djweis

join:2006-04-02
West Des Moines, IA

Re: Why contracts!!!

Most of them do but some break and some walk off. Even if they do get a used modem we still reflash the firmware and clear out the configuration. We aren't large enough or irritating enough that we have a large customer churn.

LilYoda
Feline with squirel personality disorder
Premium
join:2004-09-02
Mountains


edit:
August 29th, @12:23PM

link to BBR is weird...

When I type the link from the scanned letter, »Re: Wallpaper Changer Programs?, it's sending me to a post by TOTC about wallpaper changer programs... /me is confused
--
"Money and sex, storage and bandwidth: only too much is ever enough"
Arno Penzias - Former Head of Bell Labs, and Nobel prizewinner
PghGoodGuy

join:2006-08-08
Pittsburgh, PA

Well, MY FiOS rates ARE going up.......big time! 30% to 70%

I'm not sure who these guys spoke with at Verizon but MY FiOS rates ARE going up when my contract expires next month - BIG TIME- from $30/mo for 5/2 here in Pittsburgh to either $45/mo or $53/mo, depending on whether I sign up for a one year contract. No cheaper deal if I go with a two year plan either.

I have a stand-alone 5/2 plan that runs $35/mo with a $5 discount for being a former Verizon DSL subscriber.

I will lose the $5 discount when my contract expires next month according to the rep at Verizon.

I'm not able to pick up any other Verizon products for lots of reasons but I'll think about FiOS TV when it's finally offered.

Bottom line though, my "non-promotional" rates are going up at least $10/mo even if I sign on for a year long contract. No continuation of the promotional rates for me.

When I asked Verizon why these rates are higher than any of the rates shown on their webpage currently, they told me the rates were "brand new" and aren't listed yet - adding that "stand-alone" rates aren't shown on the webpage anyway - which sounds like a crock of crap to me.

I'd love to know who you all spoke with at Verizon that stated your promotional rates will stay in effect as long as you extend your contract. Maybe they can help me out!

I'd gladly do that.

Anyone else in the same boat?

darthlamont

@verizon-gni.net

Consumer Reports

Ahh, you see, Consumer Reports doesn't allow companies to advertise their Consumer Reports ratings, since this may create a real or perceived bias. The link is Verizon's way of circumventing that.
Forums » No, Your FiOS Rates Aren't Rising


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