Comments on: Verizon FIOS is WAY more Expensive than you Think – Here’s Why

By: Lew

Lew — Fri, 29 Jan 2010 03:20:29 +0000

Good information. I’m about to switch from Verizon FIOS to Comcast, and I am doing some research. I’ve had Verizon FIOS for several years, and was pleased. But on January 19th, I stopped being able to use FTP to access the websites I maintain. The servers disconnect immediately after I access them. My laptop works fine if I use my friend’s Comcast service, but will not work with anyone’s Verizon service. Verizon FIOS tech support refuses to help. They say that if I can get on the Internet, that’s all they care about. Their tech support is worse than bad. For me it is non-existent.

By: Jim

Jim — Thu, 08 Oct 2009 17:19:08 +0000

Darwin, I think you're right on all counts. I also agree with your original post that the Comcast deal is better for you right now. I was thinking more from my perspective where I live. Here, FIOS has been around for a couple years and Verizon and Comcast have been actively competing and trying to one-up the other. I get mail from both companies about weekly advertising some deal or bundle discount. .-= Jim´s last blog ..Can you open a Roth IRA? =-.

By: Darwin

Darwin — Thu, 08 Oct 2009 00:06:22 +0000

Jim,
Thanks for your comment. To address a few thoughts:
Since FIOS is a new offering, in the vast majority of the cases, you’re looking at existing Comcast customers defecting to FIOS, not the other way around. Since there is a net defection from Comcast TO FIOS, the leverage is with the Comcast customers and existing FIOS customers have little or no leverage.

If a new FIOS customer is threatening to leave FIOS to go to Comcast, the rep will basically laugh in their face. Here’s why:
1) Since FIOS is so new, by default, the customer is still in the early cancellation period and would be facing a severe cancellation charge
2) FIOS is viewed as having a superior offering and as such, nobody’s really leaving. They’ll know you’re bluffing and politely say, “good luck. so, do you really want to cancel?”

People ARE actually leaving Comcast in droves, hence the desperate attempts to keep existing customers since acquisition costs are high and marginal costs to service a customer are negligible.

Perhaps in a few years when the novelty has worn off and if Comcast can further differentiate itself with other value offerings, there could be net defections from FIOS to Comcast, but for the time being, highly unlikely IMHO.

By: Jim

Jim — Wed, 07 Oct 2009 19:14:49 +0000

Comcast will normally raise rates after the 1 year period and doesn't automatically throw in free premium channels. You got discounts by negotiating with Comcast. If you negotiate deals with Comcast then I assume you could also possibly negotiate deals with Verizon. Seems to me that the 2 will try and keep you as a cusotmer and one-up the other so if you've got Comaast they'll give you deals to keep you but if you've got Verizon and you threaten to leave for Comcast you might also get the same kind of deals. In your situation it makes sense to stay with Comcast given the deals they've given you. But if you were on Verizon and had negotiated a good deal by threatening to leave for Comcast then the sitatuion would just be reversed. .-= Jim´s last blog ..What if I made $42k? =-.

By: Evan

Evan — Wed, 07 Oct 2009 13:54:12 +0000

I hate Cablevision which is why I would love to switch. But ignoring the fact that I am stuck since no one thought of laying down some wires when they built my 2007 condo neighborhood – I think the analysis ignores the “The Gift.”

When My parents signed up (again because of a sole hatred of Cablevision) they received a 19 Inch LCD, at the time it probably cost a couple hundred bucks, so that would eat it into that $500 number you provided.
.-= Evan´s last blog ..Buying Life Insurance on a Child’s Life =-.

By: Credit Card Chaser

Credit Card Chaser — Wed, 07 Oct 2009 03:08:12 +0000

I personally have BrightHouse rather than FIOS but I too have received a ton of mail and other marketing pitches all touting how FIOS is supposed to be better. I am still not convinced though that the picture or speed is any better but I could be wrong. .-= Credit Card Chaser´s last blog ..Wells Fargo Credit Cards to be Marketed to Wachovia Customers =-.