Cable Technology Feature Article
June 22, 2010
Verizon Produces Month-To-Month Pricing Package and Worry-Free Guarantee for its FiOS Customers
By Madhubanti Rudra, TMCnet Contributor
The customers across the U.S. have definitely fallen for FiOS and in their lookout for reliable broadband service and better picture quality dropping their cable operators in favor of Verizon FiOS (News - Alert). The nation’s most trusted wireless network has informed that all new Verizon (News - Alert) FiOS customers can opt to pay for a bundle on a month-to-month basis at the same prices charged to customers purchasing a term contract, and receive price protection for one year without an early-termination fee. For customers who want two-year price protection, Verizon has expanded its 30-day FiOS Worry-Free Guarantee.
Verizon will bring the Worry-Free Guarantee to its customers in California, Connecticut, Delaware, Florida, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Texas, Virginia and the District of Columbia markets where FiOS is offered. The month-to-month option is available in those states, plus the FiOS markets of Indiana, Oregon, South Carolina and Washington, which are in the process of being transitioned to Frontier Communications.
“We've listened closely to the market and heard potential customers say that FiOS offers faster, more reliable broadband service and crystal-clear TV pictures in any conditions, but that they want time to consider their switch from cable. We want customers to know that the shift to FiOS is the best move they can make; that a two-year commitment provides them with price protection for their home-entertainment needs; and that our month-to-month pricing option and Worry-Free Guarantee help reduce anxiety from their decision,” Mike Ritter, Verizon chief marketing officer for consumer wireline and business services explained.
One interesting point to note is that contrary to competitors' claims, Verizon has always offered month-to-month bundles, at prices that were just $20 higher per month than the contract term bundles.
Now new FiOS customers can get the base FiOS bundle month-to-month, with no term contract or early-termination fee, for $99.99 per month before taxes, fees and customer-selected service additions, such as set-top boxes and premium channel choices, or the new La Conexion bundle, which includes the best in English and Spanish programming, for $89.99.
New customers can save an additional $5 per month on FiOS bundles when ordering online at http://www.verizon.com/.
Verizon also informed that new customers will also receive EPIX or the FiOS TV Movie Package, which features more than 40 channels including SHOWTIME, STARZ, THE MOVIE CHANNEL, ENCORE and FLIX. All these come free for a year with a triple-play bundle and free for three months with a double-play bundle, the company says. This matches the current FiOS TV Movie Package offer for new term-contract customers.
The renowned research firm IDC (News - Alert) predicts, the new Verizon strategy will be a big hit with the Verizon customers.
“IDC believes that this new strategy of increasing consumer flexibility – coupled with multiple year pricing certainty – will serve as a catalyst to attract new customers to Verizon's bundled service offerings. At the same time, because IDC's primary consumer research on the major TV, Internet and voice service providers indicates that existing Verizon bundle subscribers are highly likely to keep their Verizon bundle beyond their initial service agreement, we believe that Verizon will retain many of the new customers it acquires,” Matt Davis, director of Consumer and Small Business Telecom Research for the global technology research firm IDC noted.
Madhubanti Rudra is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.
Edited by Juliana Kenny