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Verizon: Still No Cap Announcement 'Just As Yet'
As FiOS TV Exec Acknowledges Cord Cutting a Real Phenomenon
by Karl Bode Thursday 06-Sep-2012 tags: competition · business · alternatives · telco · caps · Verizon FiOS · Verizon Online DSL
In an interview with the Tampa Tribune (via Stop The Cap) Verizon's head of FiOS TV Maitreyi Krishnaswamy touches on several interesting topics including Google Fiber, which she's curious to see emerge as a potential "real operator." Krishnaswamy bucks the TV industry executive trend of insisting that cord cutting isn't a real thing, acknowledging it's a "growing trend" that the company tries to adaptively combat. As for bringing caps and overages to FiOS Verizon continues to choose their words carefully, Krishnaswamy saying the carrier has nothing to announce on that front "just as yet." Given Verizon's recent tendency to dramatically increase prices for FiOS users, their new BFF status with the capping cable industry and the growing industry trend toward such a model (justifiable or not) -- it does seem like a matter of when, not if.

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kingdome74
Emotionally Unavailable
Premium
join:2002-03-27
Syracuse, NY
kudos:2
Reviews:
·Verizon FiOS
·RoadRunner Cable

Say What?

I'll admit I'm not a happy camper. As much as I love my 35/35 Triple the price of it has me looking very seriously elsewhere. They popped my monthly bill from $141 to $180 in less than a year which is on the very high edge of what I can afford. Plus we subscribers get almost no pricing breaks - if I switch to a 2-year contract my price goes up 15/month. If I drop down a level I pay 15/month more. If I drop the phone the price doesn't change even though I'm paying $30/month for it.

Now let's add in a usage/overage cap. That means I'm gone no questions asked. It's this very idea of selling me a speed that I should be able to access night or day and then telling me I have to pay even more and more... this is the price I have to pay to use my fuc*ing service? Not happening. No way. At this point FiOS is overpriced and with a cap there would never be a reason to even consider them.
--
$4 gas, 16 Trillion debt, 8.3 unemployed, and record food stamps... this is better than 4 years ago?


MovieLover76

join:2009-09-11
kudos:1
Reviews:
·Verizon FiOS
·DIRECTV
·Optimum Online
·Cablevision

Re: Say What?

Agreed, I stay with FiOS for uncapped data, add a cap and their's no point in paying the premium for FiOS.

FiOS's pricing is extremely convoluted, it practically forces you into the triple play. right now I have a free dvr, which technically you can't keep if you move, I'm moving in November and if they don't let me keep the free dvr, I'm sort of cutting the cord, dropping down to broadcast basic and 15/5.
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

Service

I am most likely going to cut the cord to the TV service. Since I am moving my bill went from $99 a month to $130.

Duramax08
Win8 sucks
Premium
join:2008-08-03
San Antonio, TX

You cord cutters are lucky

I have to live with my 20gb cap and satellite tv.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: You cord cutters are lucky

how are cord cutters lucky? most are moving to other providers, and if you totally do it- you move to OTA not to another provider.

BF69
Premium
join:2004-07-28
Camden, TN

Re: You cord cutters are lucky

said by hottboiinnc:

how are cord cutters lucky? most are moving to other providers, and if you totally do it- you move to OTA not to another provider.

A cord cutter be definition is one who forgoes all cable/satellite/U-verse,FiOS etc. Going from cable to Directv does not make one a cord cutter.
osravens

join:2011-01-26
Cumberland, MD

VZ Wants to Kill FiOS

This is just another step in that. Drive the price up, then claim no one was interested. It's wishful thinking on VZ's part to get out of a market they don't want to be in.

Meanwhile, have you heard about Verizon's 4G LTE network yet? You can package it with your Xfinity TV!
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

Re: VZ Wants to Kill FiOS

said by osravens:

This is just another step in that. Drive the price up, then claim no one was interested. It's wishful thinking on VZ's part to get out of a market they don't want to be in.

Meanwhile, have you heard about Verizon's 4G LTE network yet? You can package it with your Xfinity TV!

This is not entirely accurate.. Verizon is stuck with FTTP, what is not certain is what they will do with their remaining copper networks (and to a lesser extent, current build commitments). The BILLIONS of a warchest from the Bell Atlantic / GTE days are at least half spent (26 out of 50 billion dollars in cash). There's this segment of management that's had it bad for developing wireles and betting the farm on competing with AT&T in a duopoly-- and they've gotten their way.. for now. For a while I suspected that Verizon wanted to pay off Vodafone once and for all.. but now they've resigned to keep vodafone onboard probably indefinitely due to the fact that the FCC & DOJ is not going to just hand over all the goodies in terms of commoditization of wireline & wireless data... so that companies can feel free to gouge consumers. That means they'll need an investor to fall back upon if/when wireless cycles down in demand.

As ATT/Verizon jack up prices, this give smaller carriers every incentive to build their networks- largely because their business model still includes "unlimited style" plans & no overages. Nevertheless, the two big carriers are bulding in redundancy so even if they did have to compete at the unlimited model, they could do so easily.. and by the time they make all this money they currently are.. they'll have the deep pockets to win a pricing war too. Little do consumers seem to look at the big picture..

As for wireline? Raising prices will drive consumers away... but there is no profit in doing that... and I don't think it will give them a justification for usage based billing. Just about the only thing that would, is IF the evil empire Republicans take power..

If you thought corporate greed is obscene and out of control today....? Just give it 4 years of a republican administration & congress... The country will earn itself a new name.. and it's not a nice one..
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: VZ Wants to Kill FiOS

smaller carriers were TOLD to build their OWN networks YEARS ago but refused. And we see what that got Earthlink, COVAD, Speakeasy and see how far its getting companies like Sonic.net (half ass copper network via AT&T and VZ/who ever) and a partly done FTTH that will never fully reach their footprint due to $$$ they don't want to spend without getting investors or more bank notes on the company. DSLX is the same along with every other reseller.

And these companies will NOT be able to get into the wireless market unless they all band together to out buy the specturm they need, or team up with the MSOs and put in wifi access points on the lines and do SIP/VoIP cellular.

NormanS
Premium,MVM
join:2001-02-14
San Jose, CA
kudos:9
Reviews:
·SONIC.NET
·Pacific Bell - SBC
said by tmc8080:

Just about the only thing that would, is IF the evil empire Republicans take power..

You made me look! But this isn't the 'Blue Room' after all.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum
Sammer

join:2005-12-22
Canonsburg, PA

1 edit
said by osravens:

This is just another step in that. Drive the price up, then claim no one was interested. It's wishful thinking on VZ's part to get out of a market they don't want to be in.

Even with the price hikes it's doubtful that no one will be interested. Verizon may have installed some "greenfield" FiOS this summer where a few new houses are being built in Canonsburg but I still live about three miles away from where FiOS otherwise ends. I pay just as much for Comcast service that is quite possibly worse and arguably no better than FiOS. Sometimes I think Xfinity stands for infinitely expensive.
rebus9

join:2002-03-26
Tampa Bay
Reviews:
·Verizon FiOS
·Bright House
said by osravens:

This is just another step in that. Drive the price up, then claim no one was interested. It's wishful thinking on VZ's part to get out of a market they don't want to be in.

Seriously? Something like $17 billion invested in the last few years, fastest broadband network around, and they want to walk away from it?

Can't agree with you there.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: VZ Wants to Kill FiOS

they have in many areas. So why not the rest?
rebus9

join:2002-03-26
Tampa Bay
Reviews:
·Verizon FiOS
·Bright House

Re: VZ Wants to Kill FiOS

said by hottboiinnc:

they have in many areas. So why not the rest?

Where have they abandoned FIOS?

Stopping the buildout, yes. Dropping the procuct, no.

They need ROI from it, and it gives them too many bragging rights.
bigred1324

join:2009-07-27
Fort Wayne, IN
Reviews:
·DIRECTV
·Frontier FiOS

Re: VZ Wants to Kill FiOS

said by rebus9:

said by hottboiinnc:

they have in many areas. So why not the rest?

Where have they abandoned FIOS?

Stopping the buildout, yes. Dropping the procuct, no.

They need ROI from it, and it gives them too many bragging rights.

Fort Wayne, IN and the Pacific Northwest.
rebus9

join:2002-03-26
Tampa Bay
Reviews:
·Verizon FiOS
·Bright House

Re: VZ Wants to Kill FiOS

said by bigred1324:

said by rebus9:

said by hottboiinnc:

they have in many areas. So why not the rest?

Where have they abandoned FIOS?

Stopping the buildout, yes. Dropping the procuct, no.

They need ROI from it, and it gives them too many bragging rights.

Fort Wayne, IN and the Pacific Northwest.

Abandoned FIOS specifically, or completely sold their footprint (all services including dialtone) to a CLEC?
bigred1324

join:2009-07-27
Fort Wayne, IN
Reviews:
·DIRECTV
·Frontier FiOS

Re: VZ Wants to Kill FiOS

said by rebus9:

Abandoned FIOS specifically, or completely sold their footprint (all services including dialtone) to a CLEC?

The deal was to take the FiOS properties in Indiana and Oregon/Washington or no sale at all. Frontier had no choice. So they did abandon us FiOS customers.

NormanS
Premium,MVM
join:2001-02-14
San Jose, CA
kudos:9
Reviews:
·SONIC.NET
·Pacific Bell - SBC

Re: VZ Wants to Kill FiOS

said by bigred1324:

The deal was to take the FiOS properties in Indiana and Oregon/Washington or no sale at all. Frontier had no choice. So they did abandon us FiOS customers.

No. They just sold you to Frontier. It is Frontier doing any abandoning.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum
rebus9

join:2002-03-26
Tampa Bay
Reviews:
·Verizon FiOS
·Bright House
said by bigred1324:

said by rebus9:

Abandoned FIOS specifically, or completely sold their footprint (all services including dialtone) to a CLEC?

The deal was to take the FiOS properties in Indiana and Oregon/Washington or no sale at all. Frontier had no choice. So they did abandon us FiOS customers.

I understand what you're saying, but withdrawing from a market by selling their footprint to Frontier is different than abandoning a specific product line. Frontier of course has the option to keep the fiber lit, and would be foolish not to do so.

I know carriers are trying to push everything to wireless, but I remain wholly unconvinced that wireless (4G/LTE, 5G, 6G, and beyond) will ever replace wireline. It's cheaper for carriers to deploy, but I don't think we'll see 10/40/100++ Gbps speeds through the air. Some day not so far off, we'll be streaming 3D video at 10,000 pixel resolution and it won't be LTE bringing it into the home.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Sure "Cord Cutting" is Real

quote:
Krishnaswamy bucks the TV industry executive trend of insisting that cord cutting isn't a real thing, acknowledging it's a "growing trend" that the company tries to adaptively combat.
Yes, it grows every time the promotional prices end. People run right back to cable if they are offering a promotional price. Reverse every year or so and repeat.
--
Romney/Ryan 2012 - Put a couple of mature adults in charge.
osravens

join:2011-01-26
Cumberland, MD

Re: Sure "Cord Cutting" is Real

They've created an unsustainable model where new customers are never conditioned to pay their so-called market rates.

It's kind of like department stores, and nobody pays retail.

I'm not sure any business model has ever been successful in directly antagonizing their existing customers so much.

It really goes to the underwhelming competition we have, the competition Verizon could provide if it was slightly interested.

They're going to have change something and fast, or cord cutting is going to become the norm and not the exception.

MovieLover76

join:2009-09-11
kudos:1
Reviews:
·Verizon FiOS
·DIRECTV
·Optimum Online
·Cablevision

Re: Sure "Cord Cutting" is Real

I'm not sure cord cutting will become really popular for awhile.
As you said most people don't pay retail, I used to pay cable and directv off each other, then I switched to FiOS for a promotion and when that promotion is over I'll switch again or get FiOS to offer me a deal to stay (unlikely given their constant price hikes I know)

The thing about these promotional rates is as cord cutting becomes more and more of a threat you see two things, internet is the only thing that's price isn't slashed substantially and they'll give away TV and phone for $20 more, and they are introducing caps that make overages a real concern when cord cutting, both reduce the incentive to cut the cord.

What we really need is more broadband competition, and possibly full tv service options over the internet. Netflix works great, theirs no reason you couldn't have a guide and stream the show you want, or watch something that was on earlier in the day. The roadblock here is licenses, if apple is having a hard time doing it, everyone will.
sphinxguy18
Premium
join:2008-01-13
Dallas, TX
Reviews:
·Verizon FiOS

FiOS & Caps

I'd go back to cable and save my money (paying $95/month for 75/35 - Internet Only) if they impose a cap on the Internet. For almost $100/month and having to worry about caps, I might as well go back to cable, save my money and deal with the annoying, but cheap, internet they offer!

Yes "Cord Cutters" are real! My bill was just about to hit $205/month for TV & Internet Only (Extreme HD - not Ultimate HD) and 50/25 Internet - no home phone, 1 Home Media DVR & 2 HD Boxes, before I "cut the cord" - now I pay $8 bucks a month to watch tv!

I don't mind paying a premium price for the 75/35 - just don't bother me with caps and/or worries that I will hit a cap of some sort.
osravens

join:2011-01-26
Cumberland, MD

Re: FiOS & Caps

Especially in your case where TWC is uncapped, and has expressed a more positive tone to keeping unlimited alive than VZ has.

What will be most entertaining is how VZ defends a cap on the basis of the network's capacity. If they somehow try it's to keep the network free of congestion, then they lose one of their key marketing provisions from cable.

If fiber can be congested too (It can't, but VZ would put this myth out there), why would people pay more for it when it's still capped?

It's almost like Comcast's marketing team would come up with this one.
sphinxguy18
Premium
join:2008-01-13
Dallas, TX

Re: FiOS & Caps

I agree 100%!

djrobx

join:2000-05-31
Valencia, CA
kudos:1
Reviews:
·VOIPo
·Verizon Wireless..
·RoadRunner Cable
·AT&T U-Verse
said by osravens:

If fiber can be congested too (It can't, but VZ would put this myth out there), why would people pay more for it when it's still capped?

Of course fiber can be congested. Just as cable has their transmission mechanisms, FiOS is using transmission technologies with specific limits (BPON and GPON).

»Verizon Online FiOS FAQ »What is BPON or GPON?

People on the older BPON system don't have FiOS' highest speed tiers available to them.

»forums.verizon.com/t5/FiOS-Inter···p/402055

Fiber is more future proof, but in both cable and FiOS' case, these limits can be readily increased through the use of new technology that takes better advantage of the medium (FiOS: GPON, Cable: DOCSIS 3). DSL's twisted pair wires seem to be the only broadband tech that's really hitting a wall in terms of upgradeability.

You could have AT&T's FTTH and be limited to speeds slower than copper customers!
--
AT&T U-Hearse - RIP Unlimited Internet 1995-2011
Rethink Billable.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: FiOS & Caps

Cable DOCSIS 3 shares 100-200 mbits between hundreds of customers. BPON shares 640 mbits between at most 32 customers. GPON ups that to 2.4 gbits between 32, and is now the standard. XGPON ups that to 10 gbits and will be the standard in a few years.

There's no comparison between cable and fiber, especially on the upload side.
Sammer

join:2005-12-22
Canonsburg, PA

Re: FiOS & Caps

said by sonicmerlin:

Cable DOCSIS 3 shares 100-200 mbits between hundreds of customers. BPON shares 640 mbits between at most 32 customers. GPON ups that to 2.4 gbits between 32, and is now the standard. XGPON ups that to 10 gbits and will be the standard in a few years.

XGPON equipment (in the form of 10GPON1 that is practically 8 Gbps down, 2 Gbps up and compatible with existing GPON) may be commercially available as early as sometime next year. Don't know what Verizon's plans are but what is really cool is that 10GPON1 (uses it own two compatible wavelengths) and GPON will be able to be offered in the same neighborhood at the same time.
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1
You do realize that you are still shared at one point in their network. it might be closer to their office but eventually it gets shared. ALSO if 23 of those people have 100 megabits or higher service or everybody has 75 and all use the connection at the same time it can get congested also.

Also docsis 3 is MUCH cheaper to deploy. Thats the reason why verizon stopped the fios rollout. they just cant compete on price. who needs speeds past 100 down? I have a 100/100 copnenction at work and most sites do not serve me at that speed.
Also look on the net they are working at 10 gig/10gig for cablenetworks also on coax.

Coax is not the bottleneck its how docsis is configured thats the problem. if you got rid of the docsis configuration and used it as one big connection you will find its much much faster then you think.

danclan

join:2005-11-01
Midlothian, VA

Re: FiOS & Caps

said by majortom1029:

You do realize that you are still shared at one point in their network. it might be closer to their office but eventually it gets shared. ALSO if 23 of those people have 100 megabits or higher service or everybody has 75 and all use the connection at the same time it can get congested also.

Also docsis 3 is MUCH cheaper to deploy. Thats the reason why verizon stopped the fios rollout. they just cant compete on price. who needs speeds past 100 down? I have a 100/100 copnenction at work and most sites do not serve me at that speed.
Also look on the net they are working at 10 gig/10gig for cablenetworks also on coax.

Coax is not the bottleneck its how docsis is configured thats the problem. if you got rid of the docsis configuration and used it as one big connection you will find its much much faster then you think.

DOCSIS isn't really cheaper it costs bandwidth among other things as well as all now docsis equipment at the end users home as well as cable office. Coax is limited even without docsis it has its limitations.

FiOS didn't stop rolling it out cause cable is cheaper that makes no sense.

Fiber plant is by far cheaper over the long run than any copper cable plant to run. It takes less people, power, fewer lines and even less hardware to manage a fiber plant that a copper one. It suffers from 0 interference and degradation over time and its arguably far cheaper to upgrade with virtually 0 limitations on speed and opportunities for future services.

The sharing on a fiber plant happens when you hit the back haul line when your shared gige line connects to a massive multi gig pipe(10, 40 or 100)....there will be little to no interference ever on a fiber plant compared to a similar copper one.
tanzam75

join:2012-07-19

Re: FiOS & Caps

said by danclan:

FiOS didn't stop rolling it out cause cable is cheaper that makes no sense.

Sure it does.

It costs Verizon more money to build a new fiber plant, than it costs the cable companies to maintain an existing coax plant that has already been paid for.

That is why the cable companies can beat FiOS in pricing. They may not be able to match them in speed, but most people are unwilling to pay the premium cost for the additional speed.

TheHelpful1
Premium
join:2002-01-11
Upper Marlboro, MD

Caps

Caps are like speed cameras. They take a measurement of how fast people move through a given area, then lower the speed limit to what 30% of people actually travel and set up a speed camera 50 yards from where the speed limit drops down to the new lower limit and Bingo, instant cash cow on 70% of commuters.

Same with Verizon; set people on blisteringly fast FIOS, once the market has been thoroughly saturated, set a cap to the lowest margin of what your subscribers typically use and then impose data caps and overages while encouraging everyone to switch to your 4G LTE plan so you can take "Broadband as fast as your home, everywhere you go" which also has data caps.

*Sent from my unlimited 3/1 DSL line for $40/mo, which sadly is slower than my StraightTalk phone *
--
"My weakness is that I care too much"
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Caps

can apply to be true- but unlike speed cameras- caps do NOT cause accidents like the cams.
serge87

join:2009-11-29
NY
Reviews:
·Verizon FiOS

Not sure if necessary...

I'm a heavy FIOS user(40-50TB/month) and if caps were introduced at some point in the future I would have to cut my usage heavily and consequently switch to a cheaper Time Warner plan. Paying a premium(especially after the recent set of rate hikes) is getting less and less justifiable. Based on the FIOS network design would caps ever be necessary? or has their market share become that great?

See 11 replies to this post

FiOSopher

@verizon.net

Why

Keep asking why FiOS doesn't have caps, and when will they start ... make it seem like it is inevitable, you might be able to convince FiOS of that. Why do you do that? Maybe FiOS can have a competitive advantage in that regard.
Bob
Account deleted

join:2012-07-22
New Jersey

FUD

Sounds like FUD to me.

Shimon

@verizon.net

Go ahead and cap

Cablevision will love my money...
elray

join:2000-12-16
Santa Monica, CA

Non-issue

Verizon's product is already priced high enough that 2/3 of the public won't buy it. Adding caps would only lessen that figure and their revenue - unless caps are used to allow an entry-level tier, i.e. 10/2 for $30/month, with a 250GB cap, with a modest overage charge, i.e. 10 cent per GB.
pittpete1

join:2009-06-12

Re: Non-issue

Cry me a river...Im stuck in Frontier DSL land with only Comcrap as a competitor.
Between DSL,a home POTS line and DirectTV I'm paying over a $180 a month for up to 6mbs download.
I love it when people come on here complaining about how thier Fiber connection is too much
elray

join:2000-12-16
Santa Monica, CA

Re: Non-issue

Well, I'm not complaining, just stating the facts - only a minority of consumers are willing to pay the Fios premium, numbers insufficient to make the investment pay.
pappy97

join:2007-03-12
Dallas, TX

Cap is a non issue

I first thought to myself that I'd want to kill myself if there was a cap on FIOS, but really, if they cap residential, I'll switch to Small Business. FIOS Small Business is not, and will likely not be, capped just like most cable "business class" internet is uncapped.

Sofa King
Premium
join:2009-03-01
21435

User Consumption Statistics

Click for full size
»www.fcc.gov/measuring-broadband-···#chart19

I thought this was an interesting graph from the FCC Measuring Broadband America. It shows the distribution of usage as a % of the user base. The people under the graph over 250+ (which doesn't even show up on the X axis) are the ones that need to worry about caps.

I expect the users with SamKnows boxes are pretty tech savvy so this user base doesn't include grandma checking email.
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

cablevision

Ask cablevision what happened when they started capping people. After a year or so they switched back to no caps.

Verizon will not cap. in places like NYC with cablevision as acompetitor they would lose tons of customers if that happened.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ

Re: cablevision

said by majortom1029:

Ask cablevision what happened when they started capping people.

That is why I joined DSL Reports; Cablevision's capping.

It was fun for two years, now I will never get FiOS because of stupid, stupid from top to bottom.

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