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FiOS pricing

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Copper Contributor
Copper Contributor
Posts: 16
Registered: ‎02-06-2013

FiOS pricing

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Why is FiOS pricing so high?  I would expect it to be higher than other fiber providers being one of the first Verizon may not have benefited from some of the same efficiencies that other providers rolling out now have.  But the difference in pricing between Google Fiber and Verizon is shocking...

 

When my promo price ends in a few months my cost per megabit of upload will go from $1.07 to $1.20 and the upload will go from $2.00 per megabit to $2.57.

 

Meanwhile Google Fiber standard pricing comes in a $0.07 per megabit.  With standard pricing that means Verizon FiOS is about a whoping 17x more expensive.  What justifies that kind of price premium?  I can understand Verizon not being able to offer service at 2x or 3x the cost as Google due to ineffeciencies from rolling out the fiber a few years ago but is a 17x price differential really justified?

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Contributor
Contributor
Posts: 4
Registered: ‎02-13-2014

Re: FiOS pricing

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Fios is expensive... and wifi is slow... the services are worst... what do you expect... welcome to the FIOS club


@geschinger wrote:

Why is FiOS pricing so high?  I would expect it to be higher than other fiber providers being one of the first Verizon may not have benefited from some of the same efficiencies that other providers rolling out now have.  But the difference in pricing between Google Fiber and Verizon is shocking...

 

When my promo price ends in a few months my cost per megabit of upload will go from $1.07 to $1.20 and the upload will go from $2.00 per megabit to $2.57.

 

Meanwhile Google Fiber standard pricing comes in a $0.07 per megabit.  With standard pricing that means Verizon FiOS is about a whoping 17x more expensive.  What justifies that kind of price premium?  I can understand Verizon not being able to offer service at 2x or 3x the cost as Google due to ineffeciencies from rolling out the fiber a few years ago but is a 17x price differential really justified?


 

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Platinum Contributor III Platinum Contributor III
Platinum Contributor III
Posts: 7,512
Registered: ‎12-15-2010

Re: FiOS pricing

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I suppose what we're dealing with are two different economies of scale. Both companies get their primary revenue sources from different places. For Google, it's primarily their advertising and data mining empire. For Verizon, it's whoever pays into the network (customers). It's a long debate I'm not in the mood to start, but considering Verizon's FTTP network is much larger than Google FTTP currently is, and considering in some areas Google bought infrastructure for $1 whereas Verizon had to build from scratch, that should start off the perspective of why things are more expensive.

 

Also, slow Wi-Fi is not the fault of Verizon. Realisitically speaking, Wireless networks would perform much better as a whole if everyone wasn't shoving everything onto them. Run some cable, or make use of existing cabling, and get what you actually pay for; a wired connection.

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MVP MVP
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Posts: 1,681
Registered: ‎12-02-2012

Re: FiOS pricing

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@Smith6612 wrote:

I suppose what we're dealing with are two different economies of scale. Both companies get their primary revenue sources from different places. For Google, it's primarily their advertising and data mining empire. For Verizon, it's whoever pays into the network (customers). .


Yes, it's all about competition and business goals.  I'd also venture a guess that Google Fiber and FiOS do not exist in the same geography.  If they do, I'd be interested to see what the price differential is and how that effects markets.

 

One thing that many people fail to realize is the price of a good or service has very little to do with it's cost.  It's all about charging what the market will bear in order to make as much profit for the owners / shareholders as possible.  Competition is what is supposed to regulate prices and it does in many markets.  Broadband is "special" as it has very high entry costs and limited competition.

 

Anyway, the answers to the OP's question are deep and complex and might be better suited to an MBA paper.

 

Have Fun

 

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Gold Contributor VII Gold Contributor VII
Gold Contributor VII
Posts: 2,153
Registered: ‎11-10-2009

Re: FiOS pricing

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@gs0b wrote:

Yes, it's all about competition and business goals.  I'd also venture a guess that Google Fiber and FiOS do not exist in the same geography.  If they do, I'd be interested to see what the price differential is and how that effects markets.

 

Have Fun

 


Quite correct.  There is no Verizon Fios availability in Provo Utah which I believe is the only Google fiber location - and that is still being buit.

 

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Platinum Contributor III Platinum Contributor III
Platinum Contributor III
Posts: 4,437
Registered: ‎12-16-2012

Re: FiOS pricing

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Uh,  Kansas City and Austin.  Don't think any have FIOS.

 

 

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Gold Contributor VII Gold Contributor VII
Gold Contributor VII
Posts: 2,153
Registered: ‎11-10-2009

Re: FiOS pricing

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@tns_2 wrote:

Uh,  Kansas City and Austin.  Don't think any have FIOS.

 

 


Yes, I saw there is an agreement in place.  Have started building them out yet?

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Bronze Contributor II
Bronze Contributor II
Posts: 132
Registered: ‎01-08-2013

Re: FiOS pricing

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@viafax999 wrote:

@tns_2 wrote:

Uh,  Kansas City and Austin.  Don't think any have FIOS.

 

 


Yes, I saw there is an agreement in place.  Have started building them out yet?


 

Kansas City was started two years before Provo became a Google Fiber city. The difference was that things had to be built from scratch in KC while Google took over an existing fiber network in Provo.

 

There are also plans for up to 34 more cities:

https://fiber.google.com/newcities/

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Bronze Contributor I
Bronze Contributor I
Posts: 53
Registered: ‎10-03-2009

Re: FiOS pricing

Message 9 of 13
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I wish verizon would price fios so everyone can get it. $35 month max fees included, and no long term contracts... that would attract more people to it in my book. contracts need to go.

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Contributor
Contributor
Posts: 3
Registered: ‎01-03-2013

Re: FiOS pricing

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I've been a FIOS customer since they first offered the service in Keller, Texas, and we love the service.  However, we were with Charter for cable TV and high-speed internet before we signed up with FIOS, and they also offered good service.  Now Charter is offering their Spectrum Silver triple-play with no contract for $97 per month total before tax with 60 Mbps internet, 200+ HD channels, free DVR, free premium channels (HBO, Cinemax, Showtime), free long distance digital phone service, etc.  I'm currently paying $186 per month total before tax to FIOS for 25 Mbps internet, Extreme HD with 80 HD channels, plus the HBO/Cinemax/Showtime Bundle, DVR rental, and free long distance digital phone service.  Is there any phone number at FIOS for customer retention so I can call them to see if they will match the Charter offer before I switch?  Thanks.  Mark in Keller

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