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story category Verizon Raising FiOS Prices Again Soon
Sometime this quarter by an unspecified amount...
01:45PM Monday Apr 28 2008 by Karl
tags: prices · Fiber · business · telco · Verizon FIOS
Discussing this morning's earnings, Verizon CFO Doreen Toben told investors, analysts and reporters on a conference call today that FiOS users can expect a new round of price hikes this quarter. "You may recall we increased prices for selected products in the first quarter last year," said Toben while discussing FiOS (see transcript (pdf)). "We anticipate increasing prices once again in certain products and bundles in the second quarter this year." Which FiOS products and bundles was not specified.

Verizon has consistently nudged up the price of FiOS broadband, especially for customers who refuse to sign up for long term contracts or add additional bundled services. Standalone broadband service jumped $5 in many markets last fall, while double and triple play bundles have consistently increased anywhere from $5 to $20 since FiOS was launched (depending on the product market).

For instance, users who bundle Verizon phone, FiOS 5Mbps/2Mbps and FiOS TV Premier (with two-year commitment) have seen that price increase from $104.98 to $115.98 in many markets. Users who bundle the company's 5Mbps/2Mbps FiOS service and FiOS TV Premier have seen the double play bundle price rise from $85.98 to $101.97 in many markets. The FiOS 20Mbps/20Mbps + FiOS TV Premier bundle has jumped from $107.98 to $123.97.

Given that most of their cable competitors continue to raise rates, Verizon has also found they've been able to raise TV rates in kind (as much as 12% in some instances). Last year alone, Verizon increased FiOSTV prices by 7%, added a new $75 disconnect fee, and bumped the price for their high-definition DVR rental from $12.99 to $15.99 per month in many markets.

Related:
  1. No, Your FiOS Rates Aren't Rising
  2. Verizon Advertising: Do As We Say, Not As We Do
  3. NYC Finally Accepting Verizon FiOS Proposal
  4. Verizon Confusing FiOS Customers Under Contract
  5. When U-Verse and FiOS Compete
  6. 50Mbps, 20/20Mbps FiOS Tiers Hit All Markets
  7. Verizon Starts Deploying New HD Channels
  8. FiOS Rep Dishes Out A Few Insider Tips
Forums » Verizon Raising FiOS Prices Again Soon

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matcarl

join:2007-03-09
Franklin Square, NY

Raising Rates

They just raised the rates as of January of this year, now three months later they are going up again?

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: Raising Rates

Digital OTA looks better and better to me all the time.
So far, I've got 19 channels OTA on a pair of rabbit ears (50 dB gain though). Only problem is that I don't get Fox or CBS.
--
Canada = Hollywood North

wifi4milez
In Need Of Garbage Pail Kids 1st Series

join:2004-08-07
New York, NY
·Sprint Mobile Broa..

Re: Raising Rates

said by en102 See Profile :

Digital OTA looks better and better to me all the time.
So far, I've got 19 channels OTA on a pair of rabbit ears (50 dB gain though). Only problem is that I don't get Fox or CBS.
Well, get as much enjoyment out of it as you can now! The clock is ticking, and in less than 9 months it wont work anymore (Feb 2009 to be exact).
--
Весна прибыла

AZwldcats
Ummm That's Right

join:2001-02-20
Tucson, AZ
clubs:

Re: Raising Rates

said by wifi4milez See Profile :

said by en102 See Profile :

Digital OTA looks better and better to me all the time.
So far, I've got 19 channels OTA on a pair of rabbit ears (50 dB gain though). Only problem is that I don't get Fox or CBS.
Well, get as much enjoyment out of it as you can now! The clock is ticking, and in less than 9 months it wont work anymore (Feb 2009 to be exact).
Analog is going away... Digital OTA is here to stay

wifi4milez
In Need Of Garbage Pail Kids 1st Series

join:2004-08-07
New York, NY
·Sprint Mobile Broa..

Re: Raising Rates

said by AZwldcats See Profile :

said by wifi4milez See Profile :

said by en102 See Profile :

Digital OTA looks better and better to me all the time.
So far, I've got 19 channels OTA on a pair of rabbit ears (50 dB gain though). Only problem is that I don't get Fox or CBS.
Well, get as much enjoyment out of it as you can now! The clock is ticking, and in less than 9 months it wont work anymore (Feb 2009 to be exact).
Analog is going away... Digital OTA is here to stay
Thats cool. I didnt even know there were two types of OTA!
--
Весна прибыла

JPuppy
Java Heathen
Premium
join:2002-11-24
Glassboro, NJ
clubs:

said by wifi4milez See Profile :

said by en102 See Profile :

Digital OTA looks better and better to me all the time.

Well, get as much enjoyment out of it as you can now! The clock is ticking, and in less than 9 months it wont work anymore (Feb 2009 to be exact).
He said digital OTA (ATSC), not analog (NTSC).
--
Only through the criticizing of others can we learn to love ourselves.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
MAke that... I get 19 HD OTA channels with rabbit ears... only about 5 analog OTA
--
Canada = Hollywood North
BosstonesOwn

join:2002-12-15
Everett, MA
clubs:
·Comcast Formerly ..

Yeah well programming costs can only be absorbed for so long before it has to be passed on.

Don't really know who u can blame for this.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
UncleDirtNap

join:2006-08-26
Pittsburgh, PA
·Verizon FIOS
·Verizon FIOS

Re: Raising Rates

>Yeah well programming costs can only be absorbed for so long >before it has to be passed on.

Ahh blam Congress, especially the current crop of Democrat leaders who are raking in huge amounts of money from media and content providers for continuing to block efforts to end forced bundling.

Verizon and other "cable" operators are still being forced to carry channels, and pay the increasing costs, that nobody wants in order to get access to those we do and their competition like Comcast, Time Warner and other "cable" operators that have ownerships stakes in the content providing companies are reaping the benefits.

Want lower rates and more options write your representative and demand an end to forced bundling.
majortom64

join:2004-09-12
Skokie, IL

Re: Raising Rates

said by UncleDirtNap See Profile :

>Want lower rates and more options write your representative and demand an end to forced bundling.
Moving to a la carte channel selection will not decrease bills, it will just decrease choice. ESPN (one of the most expensive basic tier channels costs MSOs about $2-$2.50 per subscriber per month). Smaller channels that are bundled with that tier usually get under $0.30 per subscriber per month.

Consider a system with 100,000 subscribers. ESPN earns $200,000 (low end estimate) and small channels earn $30,000 a month. If cable companies are forced to offer a la carte pricing and 50% of subscribers decided that they did not want to pay for ESPN, Disney would either have to make less money (cutting all other costs of running this network) or raise its price. Given that those who wanted to keep ESPN are probably somewhat less price sensitive, doubling their price to make up their revenue shortfall is Disney's most likely response. That means, those subscribers who continue to receive ESPN, will pay more, either raising their overall bill or causing them to drop other channels to make up for it.

Smaller channels will be even more drastically affected. If they are not getting bundled customers their prices will have to increase much more and many will just cease to exist.

/carmi
Corydon
Cultivant son jardin
Premium
join:2008-02-18
Denver, CO
clubs:
·Comcast

said by matcarl See Profile :

They just raised the rates as of January of this year, now three months later they are going up again?
No big surprise. Someone has to pay for all of that fiber. There was just an article about how it costs UTOPIA about $2300 to connect a subscriber. I'm sure Verizon's costs are similar.

So there's no way that they're making their investment back fast enough to please Wall Street if your customers are only paying $100 a month. That's two years to recover the cost to connect them and you haven't paid for any programming costs, HSI connectivity or telephony back-end.

This is why FiOS is considered a gamble, and why Verizon may well end up losing their shirt.
--
My opinions are my own. No-one else would want them!
MrSpock29

join:2008-02-09
Hammonton, NJ


edit:
April 28th, @02:56PM

Re: Raising Rates

said by Corydon See Profile :

said by matcarl See Profile :

They just raised the rates as of January of this year, now three months later they are going up again?
No big surprise. Someone has to pay for all of that fiber. There was just an article about how it costs UTOPIA about $2300 to connect a subscriber. I'm sure Verizon's costs are similar.

So there's no way that they're making their investment back fast enough to please Wall Street if your customers are only paying $100 a month. That's two years to recover the cost to connect them and you haven't paid for any programming costs, HSI connectivity or telephony back-end.

This is why FiOS is considered a gamble, and why Verizon may well end up losing their shirt.
That opinion was once widely held a few years ago, when fios was first being rolled out, but it is not a widely shared opinion now. VZ (and all telcos) were always going to lose reg. phone customers, and they need to compete with cable. Now they can, with better infrastructure than cable. Considering their earnings were over a billion dollars this quarter alone, that is a long stretch from losing their shirt.
Further, with the stock up over $1 today, Wall Street is making their opinion known, although some of that is undoubtedly due to the wireless side.
Corydon
Cultivant son jardin
Premium
join:2008-02-18
Denver, CO
clubs:
·Comcast

Re: Raising Rates

I'm sure they've figured out ways to roll out their service for less and less as time has gone by.

It also helps that population density in Verizon's footprint tends to be fairly high.

On the other hand, the fact that no other telco in the US has shown much interest in the FTTH model shows that there are still considerable risks to the business model (though on the other end, Qwest shows the risks of doing nothing at all).
--
My opinions are my own. No-one else would want them!

Tzale
Ron Paul 2008 - Proud Conservative
Premium
join:2004-01-06
NJ, USA
·Verizon FIOS
·Optimum Online

said by Corydon See Profile :

said by matcarl See Profile :

They just raised the rates as of January of this year, now three months later they are going up again?
No big surprise. Someone has to pay for all of that fiber. There was just an article about how it costs UTOPIA about $2300 to connect a subscriber. I'm sure Verizon's costs are similar.

So there's no way that they're making their investment back fast enough to please Wall Street if your customers are only paying $100 a month. That's two years to recover the cost to connect them and you haven't paid for any programming costs, HSI connectivity or telephony back-end.

This is why FiOS is considered a gamble, and why Verizon may well end up losing their shirt.
It used to cost around $1500-3000/subscriber when they first started a few years ago... Recent estimates put the figure at $600-1000/subscriber passed.

-Tzale
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html
nasadude

join:2001-10-05
Rockville, MD
·Comcast

Re: Raising Rates

and it will continue to get cheaper and cheaper to connect a subscriber, while the price for the service will get higher and higher.

wake up everyone, we are in a monopoly/duopoly situation; PRICES WILL NEVER GO DOWN AND THEY WILL ONLY BE STABLE OVER SHORT PERIODS OF TIME (3-6 months).

without competition, prices only go one way...UP

Tzale
Ron Paul 2008 - Proud Conservative
Premium
join:2004-01-06
NJ, USA
·Verizon FIOS
·Optimum Online


edit:
April 28th, @06:02PM

Re: Raising Rates

said by nasadude See Profile :

and it will continue to get cheaper and cheaper to connect a subscriber, while the price for the service will get higher and higher.

wake up everyone, we are in a monopoly/duopoly situation; PRICES WILL NEVER GO DOWN AND THEY WILL ONLY BE STABLE OVER SHORT PERIODS OF TIME (3-6 months).

without competition, prices only go one way...UP
Of course it is a semi-monopoly... Verizon has the best service available, they KNOW they can charge for it... However, I have seen the bandwidth / number of features increase in my area due to Verizon forcing the local cable co to really step up its game...

There IS competition, but just HOW MUCH competition is required to keep prices stable? I think it is a false hope to think more competition will keep prices lower... All these companies will just continue to raise prices when one takes the first jump.

-Tzale
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html
cwh

join:2006-05-14
San Antonio, TX

Re: Raising Rates

2 wire line tv, 2 sat tv and free OTA is probably about as much competition as you are going to get in a market. That is 5 options on where to spend your money. Not bad options if you ask me.

Tzale
Ron Paul 2008 - Proud Conservative
Premium
join:2004-01-06
NJ, USA
·Verizon FIOS
·Optimum Online

Re: Raising Rates

said by cwh See Profile :

2 wire line tv, 2 sat tv and free OTA is probably about as much competition as you are going to get in a market. That is 5 options on where to spend your money. Not bad options if you ask me.
I agree...
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html

chakey
Premium
join:2004-06-14
Gladstone, NJ
clubs:

um....

And name me one cable company that does NOT raise prices at least once a year. Par for the course.

matcarl

join:2007-03-09
Franklin Square, NY

Re: um....

said by chakey See Profile :

And name me one cable company that does NOT raise prices at least once a year. Par for the course.
Once a year is expected, but they just raised them in January!!

TK Junk Mail
Golf season has returned - hurrah
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Re: um....

said by matcarl See Profile :

said by chakey See Profile :

And name me one cable company that does NOT raise prices at least once a year. Par for the course.
Once a year is expected, but they just raised them in January!!
And this is most likely because they were selling the service initially at a loss to garner new customers. Once they have you, the rates start going up. Only new initial customers will still get the best rates for a year or two.
--
My BLOG .. .. Internet News .. .. My Web Page

chakey
Premium
join:2004-06-14
Gladstone, NJ
clubs:
Oh! I read it as they were increasing rates for the other products that they did NOT increase rates for. If they are raising rates for the same products after just 3 months--that is too much!
satellite68

join:2007-04-11
Louisville, KY
·Vonage
·Insight Communicat..

said by chakey See Profile :

And name me one cable company that does NOT raise prices at least once a year. Par for the course.
Insight does not raise prices once a year.

TDOG

join:2000-04-30
Louisville, KY

edit:
April 28th, @03:33PM

Re: um....

I agree,My Insight cable bill has not changed 1 penny and I have had since Oct. 2006

TDOG
satellite68

join:2007-04-11
Louisville, KY
Insight has not raised its price since I started with them, more than three years ago.

en102
Canadian, eh?

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

AT&T hasn't raised its rates...
No wait, their price is artificailly 'high', and now they've removed their discounts (same thing, IMO!)

DirecTv has even increased my 'plus' package (circa 2003) from $54.99 for 3 sets to $63.99 for 3 sets over the past 12 months.
--
Canada = Hollywood North

kfsutops
Premium
join:2002-08-19
Brandon, FL
clubs:
Brighthouse hasn't for me. But, they are fighting Verizon here in our market. Verizon is doing damage. Slowly buy surely.
--
"There are no stupid questions, but there are a LOT of inquisitive idiots"

mod_wastrel

join:2008-03-28
·magicjack.com

It's really not a question of rates going up,

it's only a question of how much and how often.

I mean, how else are pro athletes going to get their multi-million dollar/year contracts? (That's a trick question. Everything we buy costs more so that Joe Blow can get $20 million this year instead of only $10 million*.)

*slight exaggeration (but only a slight one)

KYL

join:2007-03-07
Clackamas, OR

Verizowned

And when was the last time Comcast raised their Internet prices?

Oh wait.

Squirrelly

join:2000-10-24
Harrisburg, PA

Re: Verizowned

I was going to switch to fios TV when is comes to my area in June but now I am going to stay with DISH

TechieZero
Tools Are Using Me
Premium
join:2002-01-25
Wesley Chapel, FL

Re: Verizowned

I was thinking of going to Verizon video from DTV in the attempt to save $$$. I guess that isn't happening.

macrospect
All The Little Stuff
Premium
join:2005-08-25
Doylestown, PA
·Comcast

said by KYL See Profile :

And when was the last time Comcast raised their Internet prices?

Oh wait.
The perfect quote for the perfect argument! I guess FiOS is beginning to not looks so superior when it comes to price, against Comcast that is!

Cabal
Premium
join:2007-01-21
02101
My Comcast HSI has been $42.95 since 2002. Haven't found a deal that's beat that, yet.

Gary A

join:2008-03-02
Odessa, FL

Safe For Now

This is why I signed a 2-year agreement! No regrets.

kyler13
Is your fiber grounded?

join:2006-12-12
Arnold, MD
·ViaTalk
·Verizon FIOS

Re: Safe For Now

said by Gary A See Profile :

This is why I signed a 2-year agreement! No regrets.
That just postpones the inevitable.

Bobcat
Verizon blows, Cablevision sucks
Premium
join:2001-02-04
Bedminster, NJ

Biased reporting

Cablevision raised my rate by 6.4% this year, but I don't recall seeing that as front-page news.

bobjohnson

join:2007-02-03
Titusville, FL
·RoadRunner Cable
·Vonage

Re: Biased reporting

said by Bobcat See Profile :

Cablevision raised my rate by 6.4% this year, but I don't recall seeing that as front-page news.
Isn't that the truth... My January '08 bright house bill was 138.94 before taxes and my February '08 bill was 154.84 before taxes and I havent changed anything since 2006..
RickNY
Premium
join:2000-11-02
New York
Oh, it was there. Let me remind you:
»Cablevision Rate Hikes

blah blah

@verizon.net
Every cable companies that compete in prices get dogged so whats the big deal here lol.

Tzale
Ron Paul 2008 - Proud Conservative
Premium
join:2004-01-06
NJ, USA
·Verizon FIOS
·Optimum Online

said by Bobcat See Profile :

Cablevision raised my rate by 6.4% this year, but I don't recall seeing that as front-page news.
What else is new? We all know Karl has it out for American broadband.. You know.... It is controversial and it increases site activity, which is a good thing! Otherwise he wouldn't have a job.
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html

punker
deleted by moderator
Premium
join:2004-06-21
Palmdale, CA
clubs:
·RoadRunner Cable
·Time Warner VOIP

said by Bobcat See Profile :

Cablevision raised my rate by 6.4% this year, but I don't recall seeing that as front-page news.
he is payed by Verizon so he can build he new quad core

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest


edit:
April 28th, @02:47PM

Now we see why the Telcos want into the TV business

... Their sheer unbridled greed was making them jealous.

All those people looking forward to FIOS are going to find it's going to end up being MORE expensive then DSL + VOIP + Satellite, me thinks. Even Uverse, AT&T's not nearly as good as FIOS on the cheap, is probably going to be too expensive.

See this is the problem with the lack of competition. They don't really compete with each other at all. They just set the absolute highest prices they think the market will bear, and then when one moves up, the other follows.

See 9 replies to this post
BF69

join:2004-07-28
Camden, TN

everyone raises prices

Charter has raised prices 3 times in the last 2 years and also reduced the amount of channels you get.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: everyone raises prices

Even DISH went up for me $3....

However, they gave me every HD channel they have now, too, so yeah a price raise, but I also got increased service.... and I could downgrade if I wished.

bobjohnson

join:2007-02-03
Titusville, FL
·RoadRunner Cable
·Vonage

said by BF69 See Profile :

Charter has raised prices 3 times in the last 2 years and also reduced the amount of channels you get.
At least some companies that are charging more and more each year are giving you a little more for the extra money...

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

said by BF69 See Profile :

Charter has raised prices 3 times in the last 2 years and also reduced the amount of channels you get.
Charter wants to maintain itself as bottomfeeder cable company.
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee

pokesph
It Is Almost Fast

join:2001-06-25
Sacramento, CA
clubs:
·Comcast

costs..

I sure miss the days when the various cable networks PAID the cable tv providers to carry their programing. (yet even then, 'cable' TV was way overpriced.
When will the increases (read that as GREED) ever stop?

oh well.. looks like pretty soon there will be no real competition or alt sources, so pay up or have not.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: costs..

said by pokesph See Profile :

pay up or have not.
i'll have not, thank you.

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI

They must be selling too fast

Business 101. If your selling too fast, your prices are too low. They must be raising rates to throttle back deployment. No?
MrSpock29

join:2008-02-09
Hammonton, NJ

Re: They must be selling too fast

said by dnoyeB See Profile :

Business 101. If your selling too fast, your prices are too low. They must be raising rates to throttle back deployment. No?
Why would any company want to throttle back deployment of their product or service?

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI

Re: They must be selling too fast

I'm being a bit tongue-n-cheek. Self-interested CEOs raise rates to get a quick profit bump. This actually causes a long term profit loss since the side effect is to throttle back acceptance. Of course if you actually can't deploy fast enough to keep up with demand, then its a proper rate hike.
--
dnoyeB
"Then said I, Wisdom [is] better than strength: nevertheless the poor man's wisdom [is] despised, and his words are not heard. " Ecclesiastes 9:16
ispgeek

join:2006-02-16

said by dnoyeB See Profile :

Business 101. If your selling too fast, your prices are too low. They must be raising rates to throttle back deployment. No?
You really should warn people before posting such things....god I laughed so hard almost crapped myself. Bottom line...Verizon is desperate to show a profit on FIOS and in true telco fashion is doing what they do best...screwing the consumer in an effort to meet that goal.

Keep it up Verizon...at this rate cable looks better and better each day. Just ask all those ticked off customers in the Tampa Bay region.

Kylemaul
Lovin' My Firefox 1.5.x
Premium
join:2001-03-30
North Port, FL
clubs:

a post subject

This is why I locked my intro rate in for 2 years. They can still raise it, but then I can tell them where to stick it.
Mr Matt

join:2008-01-29
Eustis, FL
·Comcast


edit:
April 28th, @04:21PM

Another deceitful practice

Let see if I understand correctly. A customer installed Verizon FiOS Six Months ago and there is no disconnect fee stated in the TOS. Today the customer learns that they must move and therefore places a disconnect order. Verizon feels it is ethical and moral to charge the customer a disconnect fee of $75.00 plus tax. I say Bull Feces. It looks like it is time for another class action suite against Verizon for deceptive business practices. On the other hand if the fee is clearly disclosed and only applies to customers that have installed service after the date the fee is implemented, that would be legal. In reality if Verizon wants to increase the installation cost then they should raise the installation cost not charge a disconnect fee. They do not because a higher installation fee might discourage customers from moving to FiOS. This trick increases the installation fee for a Verizon FiOS customer moving to a different service provider. Add a $75.00 disconnect fee to the cost of installation of the new service and the competitor is placed at a disadvantage.

See 6 replies to this post
Scragg

join:2007-09-01
Virginia Beach, VA

lower rates

Perfect time for the cable company to bring in a lower rate bundled digital service if you ask me.
tmc8080

join:2004-04-24
Floral Park, NY

smell what verizon's been cookin...

well, this does not bode well for customers out of or nearly out of contract. they will have to weigh their options and consider signing up to the competition. the wireless business is doing gangbusters because many of you are always on the go to one of your three jobs to help pay the gasoline bill and everything else that gets jacked up because of it. it's time for a politician lynching for voting their way into this mess.

this is disappointing though to hear that they couldn't wait until next year to deliver the bad news. IMHO, this should cause customers pause before giving over their hard earned money.. you see, we have distinctly dissonant forces heading for a collision course...

1. Rising energy prices
2. A business model designed on the concept of 'unlimited all you can eat service'
3. A company who really doesn't care if this forces some customers to cancel, who really can't afford it.

What I really want to know is how much longer can Cablevision keep doing it's $29.95 triple play promotion with 2 year no contract lock-in's for?

Surely with this news, Cablevision must be losing money on that deal...
Skippy25

join:2000-09-13
Hazelwood, MO