Verizon FiOS will be going month to month in what amounts to a trial service before customers sign up for a contract. Let nobody say that Verizon does not listen to its customers, especially when it comes to the backlash that customers have to offer when they feel disrespected. Such a situation recently happened when Verizon raised its early termination fees, but Verizon has made up for it and more with their newest offers: customers can now (or will soon be able to, depending on location) try Verizon FiOS out on a month to month basis and decide before they buy. This is no small feat, and it certainly shows the confidence that Verizon has in its 100% fiber optic FiOS network.
In Case You Missed It
In case you missed it, Verizon FiOS is a 100% fiber optic network dedicated to bringing consumers unparalleled broadband performance as well as top-notch digital cable and amazing VoIP (digital telephone) services. What makes Verizon FiOS unique, other than its forward looking fiber optic infrastructure, is the fact that these individual services work together to create a complete digital entertainment experience. There are a number of applications that run on the set top box, remote DVR management and scheduling, caller ID/call management on the screen (TV or computer), and so on are just the beginning. By keeping all of the data digital and delivering it point to point, Verizon FiOS has ensured that communications and entertainment will be combined at some point in the future.
Verizon constantly adds and updates features, but it is not at the point where only AT&T U-verse serves as an honest competitor in terms of feature parity, and even that parity is slowing fading. AT&T is trying to catch up in many ways, as are other carriers, but the bottom line is that the performance offered by a 100% fiber optic network puts other competitors at a strong disadvantage.
The Cost of Installation
All of these features come at a price, and while customers pay that price in their monthly premiums, the new pricing structure might change that business model significantly. Verizon is going out on a limb with this particular experiment, at least in the short run. Different figures indicate that the average cost for Verizon to deliver fiber optics to customers is anywhere from around $890 to just over $1300. The reason for this wide difference in what should be a uniform statistic might include overhead related to deploying Verizon FiOS hubs to neighborhoods versus connecting individual properties. Regardless, the simple fact is that Verizon does spend a lot of money to connect every single property.
At first blush, this might seem like a high-risk proposition for Verizon, but that may not truly be the case. It is entirely possible that Verizon has realized that the average consumer will eventually want to transition over to fiber optics, so their investment will pay off at some point in the future. This shows the level of commitment that Verizon has made to its FiOS network, and that seems like a solid investment from where we sit. In short, it is only a matter of time until fiber takes over the broadband world.
While there is no official word just yet on pricing, we will keep you informed as information starts rolling in. It would seem reasonable to expect a small premium for month to month users, but we have yet to hear any official word on the subject.
The Best News
The best news may not necessarily be that Verizon FiOS services are now (or will shortly be) available on a trial basis, but that this could signal a shift in the practices of an entire industry. While Big Metal will probably have to follow Verizon, the smaller and/or newer fiber optic providers will probably be in the same boat. Verizon has blazed a fiber optic path that we have all come to appreciate for its own merits, but it seems that we might all owe Verizon FiOS execs a hearty thank you if this shift signals a new way of shopping for broadband and/or digital cable services.
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