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story category Verizon Raises Rates For Existing DSL Customers
Unless they agree to a one year contract
(old news - 11:21AM Thursday Jun 28 2007)
tags: dsl · prices · business · telco
Verizon is sending out e-mails this week to DSL customers who are on a month-to-month plan (and in some cases have been for years), telling them prices are going up unless they sign a one-year contract. The price hikes vary depending on what region the customer lives in, according to discussion in our forums.

One Texas customer who has been paying $29.99 for 1.5Mbps/384Kbps service for three years was sent an e-mail saying his price would now be $31.99. A Maryland customer received the same e-mail, but his service will cost $33.99 per month unless he signs a contract.

I am not happy about these rate hike shenanigans and feel no customer loyalty, but I'll stick around for the time being for the same reason I originally signed up for Verizon: its the cheapest broadband alternative.
-forum user e_identity
A third customer in the company's less competitive (and potentially soon to be sold) Maine market has been paying $29.99 for 3Mbps/384Kbps service for four years, but is now is being told he'll have to pay $35.99 for the same service in order to remain contract-free.

As we previously noted, new 3Mbps Verizon customers who want to avoid a yearly contract pay $37.99. New customers who agree to a one-year contract pay $19.99 for the first six months and $29.99 after that.

There's also some interesting discussion in the forums among users on the 768kbps/128kbps plan who illuminate a wide discrepancy in pricing for the tier. Users also briefly touch on how they're sometimes able to get better deals through the company's retention department once they threaten to cancel.

Related:
  1. Friday Evening Links
  2. Monday Evening Links
  3. Wednesday Evening Links
  4. Qwest Sued Over DSL Early Termination Fees
  5. Friday Evening Links
  6. Verizon DSL Customers Getting Free Upgrades
  7. Verizon Reports Largest FiOS Additions To Date
  8. AT&T Announces U-Verse Enhancements
Forums » Verizon Raises Rates For Existing DSL Customers
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Jonbo298

join:2004-01-12
Council Bluffs, IA

Confusing...

Wow, I read all of that and I think my brain about melted trying to understand it all

Mactron
Happy 4th
Premium
join:2001-12-16
CM94sv

Yup Up !

Just went from $29.95 Mo, to $32.95 Mo.
Still 3000/768 and rock solid for ~5Yrs now. Gee maybe they will use the extra $ for better CSRs... Hmmmm right.
--
If only the Verizon CSRs worked this well.

NPGMBR

join:2001-03-28
Arlington, VA

Re: Yup Up !

Arent prices affected by local taxes or am I wrong on that? Because if thats the case it MIGHT explain the differences.

Karl Bode
News Guy
join:2000-03-02

Re: Yup Up !

They generally bury all taxes and fees below the line to keep the advertised price low....

en102
Canadian, eh?

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

Re: Yup Up !

I'm waiting for at&t to do the same...
For a long time, there was a difference between contract and no-contract customers, and now the pricing is the same
$24.95/3Mbps/512kbps

I suspect they'll start inching the rates once everyone's out of contract too, or push them to Uverse where its available.
rid0617

join:2003-07-20
Greer, SC

Re: Yup Up !

We're now part of the new AT&T but paying the old Bellsouth rates. 1.5/256 for $32.95. Everytime you call and ask when will the price reduce to the rest of the AT&T world your told they have no idea

supernac

join:2003-03-26
Springfield, MO

fios

Someones gotta pay for all that fiber.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: fios

you're right. fiber costs 1/10 of copper to maintain. someone's gotta pay!

supernac

join:2003-03-26
Springfield, MO

Re: fios

I'm betting the installation cost are substantial. Its going to be a long time before they "save" any money.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:
·Charter Pipeline
·AT&T Southwest

Re: fios

said by supernac See Profile :

I'm betting the installation cost are substantial. Its going to be a long time before they "save" any money.
they save on maintenance immediately and forever, compared to copper.

yes, install costs are huge. but once installed...

PolarBear
The bear formerly known as aaron8301
Premium
join:2005-01-03
Riverside, WA
·CableOne

said by morbo See Profile :

you're right. fiber costs 1/10 of copper to maintain. someone's gotta pay!
Yes, but fiber costs 10x as much as copper to deploy!
--
A computer lets you make more mistakes faster than any other invention, with the possible exceptions of handguns and Tequilla. -- Mitch Ratcliffe
keyboard5684

join:2001-08-01
Youngsville, PA

Re: fios

Then in 10 years it should be a wash. Good return on investment considering... unless my math is wrong

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
·Verizon FIOS

said by PolarBear See Profile :

said by morbo See Profile :

you're right. fiber costs 1/10 of copper to maintain. someone's gotta pay!
Yes, but fiber costs 10x as much as copper to deploy!
Deploy costs are the only thing to consider. Ongoing maintenance and capacity also must be weighted. It's not an immediate return on the investment, but go out 10, 20, or 30 years and Verizon is betting that there will be.
--
Go Colts
Answer Guy

join:2006-07-28
Grass Lake, MI

said by PolarBear See Profile :

Yes, but fiber costs 10x as much as copper to deploy!
Nope, fiber and copper installation costs are almost the same. In fact, when the copper gets larger, the fiber is cheaper due to cheaper materials. Labor is still labor, cable is still cable. The cost is still dominated by the labor costs and not the materials.

PolarBear
The bear formerly known as aaron8301
Premium
join:2005-01-03
Riverside, WA
·CableOne

Re: fios

said by Answer Guy See Profile :

said by PolarBear See Profile :

Yes, but fiber costs 10x as much as copper to deploy!
Nope, fiber and copper installation costs are almost the same. In fact, when the copper gets larger, the fiber is cheaper due to cheaper materials. Labor is still labor, cable is still cable. The cost is still dominated by the labor costs and not the materials.
I have to disagree. Fiber optic cable is far more expensive that copper lines.
--
A computer lets you make more mistakes faster than any other invention, with the possible exceptions of handguns and Tequilla. -- Mitch Ratcliffe

KA3SGM
- -... ...- -
Premium
join:2006-01-17
West Chester, PA
clubs:
Well it might seem to some of us that they have no clue how to maintain the fiber once they install it.

FTTH, IF you build it, they will come.

But when it breaks, and it takes more than 40 days to fix it, they will leave !

kyler13
Is your fiber grounded?

join:2006-12-12
Arnold, MD

Shocker

With the success of FIOS, sounds like Verizon is dropping subtle hints that they have little interest in supporting copper. They'll probably keep nudging up rates until they're equal to FIOS 5/2, at least by the time FIOS becomes available in areas that might not have it yet.

TigerLord
Resident Pentaxian
Premium,Mod
join:2002-06-09
Chicoutimi

Spoiled ?

Can't believe people are gonna cry or whine over 3 bucks...

Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
·Comcast

Re: Spoiled ?

said by TigerLord See Profile :

Can't believe people are gonna cry or whine over 3 bucks...
First it's 3 bucks.. then 5 bucks.. then 10 bucks.. when will the bucks stop? Same service, more money?
--
YourIP.US - It's Your IP .. and more!
rr.cx - Personal Site.. coming soon.

TigerLord
Resident Pentaxian
Premium,Mod
join:2002-06-09
Chicoutimi
·Videotron
·Bell Sympatico

Host:
International Broa..
Videotron

Re: Spoiled ?

$32.95 Mo for no contract is pretty damn cheap ! Better rates can be obtained for a 1 year contract, if people have been paying and saying its been great for 5 years so why not sign up ?

It's not 10 bucks, it's 1,2 or 3 according to the state... even if it were 10... we pay 20$ in Montreal if not in contract for our 10/1 ...

Like I said, you were spoiled.

Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
·Comcast


1 edit

Re: Spoiled ?

said by TigerLord See Profile :

$32.95 Mo for no contract is pretty damn cheap ! Better rates can be obtained for a 1 year contract, if people have been paying and saying its been great for 5 years so why not sign up ?

It's not 10 bucks, it's 1,2 or 3 according to the state... even if it were 10... we pay 20$ in Montreal if not in contract for our 10/1 ...

Like I said, you were spoiled.
Why force them into a contract?

The only people that are spoiled are the telco and cable companies. For them, desperate times calls for desperate measures.
dogo88

join:2001-09-24
Old Bridge, NJ
No increase if you re-sign up for another year. Well, it did go up a bit. It went from $29.95 to $29.99 for me when I signed up for another year.
tmitchell

join:2003-08-04
Hopewell, VA

Re: Spoiled ?

When I renewed my contract, it from $29.95 to $31.95. It remained at 37.95 for those without a contract.
Sammer

join:2005-12-22
Pittsburgh, PA
It's the people who whine the most that will be sent to customer retention where a way will be found to take 3 bucks off their bill.

ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA
This isn't the first $3. Just the latest $3.

anonymizer

@verizon.net

said by TigerLord See Profile :

Can't believe people are gonna cry or whine over 3 bucks...
Good point..would you mine covering my $7.04 a month increase? I didnt think so.

fancydancer
Call now and I'll double the offer
Premium
join:2002-08-28
Springfield, IL
clubs:

Big deal

I'd rather pay a few bucks more and be without a contract than be locked in....
--
Thank you for keeping this a work-free environment!
jc100

join:2002-04-10
·RoadRunner Cable

No Contracts

Signing a contract is a BAD DEAL. You are locked into that company with an expensive cancellation fee should anything happen. If you hate the service and there are lots of outages? Tough. You are in a contract. If another ISP comes in beating their price and offering better speeds, TOUGH. You can't change. I think its better to pay more and be able to leave faster, than save a few dollars and be stuck with one entity. My 2 cents.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
·Verizon FIOS

Re: No Contracts

said by jc100 See Profile :

I think its better to pay more and be able to leave faster, than save a few dollars and be stuck with one entity. My 2 cents.
That's just it. They are giving you a choice. Obviously everybody wants as cheap of service as they can get. But you need to give up a little something in order to get something back. Verizon is giving consumers a choice. "Agree to commit to us for a year and we'll give you a cheaper rate because we can rely on that income for a year. Or if you want the ability to leave whenever you want, that's fine too. But we'll charge you slightly more for that."

How is this any different then Comcast, TWC, AT&T or whever giving you a 1-year promotional rate if you agree to a year commitment?
--
Go Colts

ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA

I won't do a contract for Verizon FiOS for that exact reason. And because Verizon has such high no-contract penalties, I get the same service from TWC for cheaper.

Just as Verizon is a competitor of cable...the endless price increases and junk fees between DSL and FiOS make it all too apparent that it works the other way around.

Competition is good. Verizon can go sh!t in their hat.
--
Macintosh Users Group Serving the Inland Empire

mustang03282

join:2003-01-10
Bridgeton, NJ
clubs:
·Verizon FIOS

is this contract to stay with copper

i have no problem signing into a comtract i have had rock solid service from verizon but if i sign into a contract is that contract that i stay with copper or will i be able to upgrade to fios as soon as its deployed here
o2cool8

join:2002-04-19
Miami, FL

Re: is this contract to stay with copper

I've had no problem with bellsouth/att thus far, I've had them for like 3-4 years. One did that did annoy me was that I was being charged $47 a month for xtreme 3.0 (was the price when it came out) and then when xtreme 6.0 came out, 6.0 would cost $43 and 3.0 went down to $38, but they didnt lower my price. I called in and I got a faster service for a cheaper price. So I would not have a problem signing a one year contract to get a lower price.
WayneHolmes

join:2006-12-23
Mountlake Terrace, WA

said by mustang03282 See Profile :

i have no problem signing into a comtract i have had rock solid service from verizon but if i sign into a contract is that contract that i stay with copper or will i be able to upgrade to fios as soon as its deployed here
Just got off the phone with a rep, and Verizon considers a move from DSL to FIOS as a service upgrade. Since DSL --> FIOS is an upgrade you are not subject to the early termination charge. (In my case $49.)

Wayne
nasadude

join:2001-10-05
Rockville, MD

1 edit

how's that "competition" working?

I thought competition was supposed to lower prices and improve service.

maybe when the FCC, FTC, telcos, cablecos, etc say "competition" they mean something different.
Ahrenl

join:2004-10-26
North Andover, MA

Re: how's that "competition" working?

They're talking about their prices, not yours (customers).
tmc8080

join:2004-04-24
Floral Park, NY

good deal.. IF

Sure its a still a good deal month to month.. BUT
I'd get phone & tv service from a 3rd party.. your still on copper.. so they can't lock you into getting phone service from them.. Even on FIOS you could take VOIP from a 3rd party, and there isn't a thing they can do about it..

Unfortunately, your dealing with a greedy corporation mindset here... and revenue per subscriber is key. Some stooge takes a look at the numbers, and their cheap DSL package is not a money maker so they find ways to tweak the offering to make money out of lazy, indecisive consumers. Maybe it would be better if they made it a 6 month renewable contract.. kind of the way auto insurance policies work. This way if FIOS rolls into town (better chance of getting a speeding ticket than an upgraded GPON), its not such a big deal in you wanna go to Fiber.
rid0617

join:2003-07-20
Greer, SC

Customer satisfaction not obligation

I have a contract for nothing and will never agree to a contract. I come from a generation that you keep your customers by keeping them satisfied. This keep your customers by obligation is a crock
st7860

join:2004-05-13
San Francisco, CA

Re: Customer satisfaction not obligation

here in Canada the local DSL provider(TELUS) gives American Express gift cards for signing a contract.

brak22
Premium
join:2006-04-13
·Verizon Online DSL

You can still save $ even without a contract

Verizon has several different plans available with or without a contract. In my area: MD, VA, WV & DC you can have a Freedom Bundle and you are not locked into a contract..If you have Freedom Essentials and the 3.0/768 DSL you get the $31.99 rate with no contract and you get an extra discount on your phone package. If you have Freedom, TV & 3.0 DSL or the Freedom, Verizon Wireless One-bill & 3.0 DSL you can have the triple play and only pay $24.99 a month for the DSL and still have no contract on the DSL.
If you do not have the Freedom package, currently have the 3.0 DSL and want to roll into an annual plan for the $31.99 a month you can do that and since you are an existing DSL customer if you cancel within the contract you pay a $49 early termination fee instead of the normal $79 early termination fee and the same goes for existing DSL customers that sign up for the year contract on the 768k plan. New DSL customers signing up for the annual plan do have the $79 etf.
If you are in a year contract and you go into the Freedom Bundles you are released from your contract, no fees associated, and changed to a month-to-month plan with the discount making it $31.99 or $24.99 a month.
If you do not have a Freedom plan on the phone line and you want the 3.0 DSL: Annual Plan $31.99 a month, Month-to-month $37.99 a month.
The following prices are for the 768k annual plan- new DSL customers $14.99 a month for 12 months, Existing DSL customers who downgrade to 768k $21.99 a month.
The MD customer that received an email stating the price would go up to $33.99 a month if he/she did not renew their annual plan must have had the $31.99 a month plan for a year. Customers who have the $31.99 a month contract for a year go to discounted month-to-month rate starting on month 13 at $33.99 instead of the normal $37.99 a month.
Whome

join:2005-10-10
Newbury Park, CA

Got My Notice

Just got my notice, however I found mine in Verizon's Bulkmail, Spam Filter. Verizon Had sent so many out the system thought the emails were spam!

Can you hear me now........Not.

Richard B
Fur It Up

join:2007-06-22
Portland, OR

Nothing New

I remember Verizon pushing one year contract in 2005. Nothing new under the sun.

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

"Haves"

Someones got to support the 'haves' that have fios as those installs aren't cheap. what better way to get the cash than to charge the 'have-nots' extra.
--
You can never be too rich, too thin or have too much Bandwidth

jamez818
please hold during the silence

join:2000-09-18
Sunland, CA
·EarthLink

Earthlink from Verizon

I just got my Earthlink DSL installed mainly for the speed upgrade and kept the same price, or so I thought! I was on month to month for about 1 year now and a faster residential tier was no where in sight so I switched.
--
just whiners and complainers...

Subaru
1-3-2-4
Premium
join:2001-05-31
Greenwich, CT
clubs:

glad it's over

did my one year contract now Im looking for something else.

See 9 replies to this post

tc1uscg

join:2005-03-09
Saint Clair Shores, MI

Why all the backlash?

Come'on VZ drum beaters.. You have made them tops for customer satisfaction in the wireless world.. Their churn rate is the lowest of all telco's. So why all the bitch'n about getting your price raised? Pay it and smile that your getting top notch service from a top notch company. At least all those consumer rags think so. So suck it up. Pay for all those people standing on your lawn that keeps your DSL up and running. Your FIOS burning bright. Guess it sorta sucks if you can't jump ship to someone else. I'm just glad in my area, VZ's service (other then cell service) is pretty much non-existent. I do have Comcast, WoW and now AT&T and soon to be Sprint's WiMAX service in my area..

whtabtbill

@verizon.net

Got the e-mail...

....called them, saved 20-30 bucks a month while upping my bandwidth to 3.0 up/768 down -- gotta love the free market!
ltjordan

join:2001-12-02
Hyattsville, MD

Re: Raising rates.

The bottom line is that you have to pay for Verizon's piece of mind. If you're only going month-to-month, then you can cancel at anytime and leave them high and dry. If you have a contract and you time to leave, then you have to pay for the inconvenience of them flipping the switch to turn you off. It helps CEOs sleep at night.
Forums » Verizon Raises Rates For Existing DSL Customerspage: 1 · 2


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