
With Verizon's FiOS build out largely suspended, the company is looking to ramp up subscriber totals in markets where FiOS already exists. On the TV front they're primarily trying to do that by trying to be a little more innovative in the DVR and set top space with widgets and GUI enhancements. Like any good cable company, Verizon is terrified of having to compete on price, though they have been aggressive in competitive markets (oh hi, Cablevision) with bundle pricing. Speaking to hike-loving investors and stock jocks, Verizon's CFO assured them FiOS users should expect price hikes this year:
Verizon Communications will probably hike prices for some FiOS services this year, even as the telco looks to continue to drive up penetration of its fiber-optic video, data and voice services, chief financial officer Fran Shammo said on an earnings call with analysts. "I know folks are saying that we are overly competitive in pricing on FiOS . But what I would say is that the pricing has not actually changed," Shammo said on the call Tuesday. "And if anything, if you look at it, there was a price increase in 2011, and there will probably be some more price increases in 2012 as we go here."
Of course when Verizon and AT&T got into the market they promised lawmakers that if they greased their entry and re-wrote laws to their benefit (some of them
incredibly awful), the end result would be lower cable TV prices, and we can all see how that turned out. Meanwhile, consumer advocates and competitors are
worried Verizon Wireless's new deal with the cable industry includes a quiet non-compete agreement that would freeze added FiOS deployment and jack up prices for consumers.
That's something Verizon's CFO
denies, insisting Verizon will continue to "compete vigorously" in the TV market. Granted in the TV business "compete vigorously" means non-price competition, with providers winking at one another whenever it's time to raise rates in unison.
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