Verizon lets customers try FiOS on for size

Verizon's (NYSE:VZ) move to allow its customers to try FiOS for a month and not penalizing them if they switch is a realization that consumers want the freedom see what actually fits their own needs.

Much like it did in its Tampa, Fla. market, Verizon is finding that in order to woo over more customers away from satellite and cable it will need more than a fiber connection. It needs to offer not only month-by-month options, but guaranteed price assurance.

Of course, the new offer isn't without a risk. Given the $1,350 it takes to install FiOS at a customer's home, there's the obvious risk that Verizon could lose a great deal of money if many customers decided to switch off the service. However, if the majority of customers that sign up for the new option stay with Verizon, it could prompt both major cable MSOs--Comcast (NasdaqGS: CMCSA) and Cablevision (NYSE: CVC)--and satellite providers DirecTV (NasdaqGS: DTV) and DISH (NasdaqGS: DISH) to follow up with similar offers.

Although eliminating early termination fees is not a standard practice in the pay-TV market, Matt Davis, research firm IDC said Verizon's move signifies "a growing trend" by cable and telcos to stay competitive by offering more flexible contracts. "Verizon's reacting to that trend, trying to stay slightly ahead of it," he said in a Reuter's article.

For more:
- Reuters covers the new option

Related articles:
Verizon eliminates contracts for FiOS Tampa subscribers
Broadband bundles are about value, not just the pipe
Windstream offers lifetime data/voice bundle

Suggested Articles

Working with other researchers, Nokia Bell Labs has developed a new battery that promises to deliver 2.5 times the longevity of today’s batteries.

While AT&T is throttling back on its fiber build-out starting next month, Verizon looks to accelerate its fiber deployments.

A new report by 650 Group breaks down the impact that the tariffs, trade war and Huawei are having across various vendor market sectors.