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Summary:

Verizon is touting some great corporate numbers today: total revenue and net income is way up, and it looks like the investment in fiber is starting to pay off. I’m still waiting for their FiOS Internet service to show up in the sticks where I live. […]

Verizonfios

Verizon is touting some great corporate numbers today: total revenue and net income is way up, and it looks like the investment in fiber is starting to pay off. I’m still waiting for their FiOS Internet service to show up in the sticks where I live. The speeds of my DSL are fine: about 2.8 Mbps down and 750 kbps when I test them using Speedtest. The issue is one of cost and the fact that I’m paying for something I really don’t need: my landline.

We pay around $50 a month for our landline and its services; yes we could lower some of the services to lower the cost, but I haven’t got around to it just yet. The main reason we have a landline? DSL, which is another $30 or so a month. There are “naked DSL” offers but with FiOS coming down the pipe pike, I’m holding off from a change just yet. I’ll be sure to get FiOS when it’s offered, especially after viewing this demo of the 20 Mb up and 20 Mb down service that Verizon can offer.Here’s the interesting part though: while FiOS will be cheaper with a Verizon services bundle, I’ve heard that it is available as “naked FiOS” meaning you don’t need a phone line for it like you do with DSL. Makes sense since it doesn’t travel over the copper wires: your signal comes through fiber. Now the current Verizon FiOS offers I just saw range between $39.95 and $49.95 for speeds that faster than my current $30 DSL; these fiber options are 5 Mbps or 15 Mbps down and 2 Mbps up. While I expect to pay a premium for the standalone FiOS service, I can’t see it being more than the $50 I’ll save monthly when I drop my landline. So the question is: has Verizon created a “perfect storm” that will actually reduce their intake as folks drop their landlines? The company has actually made it easier for this to happen by investing in the expansion of their fiber network.

  1. Wait until your power goes out and you will know how much you need that land line.

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  2. Good point. Maybe I should get one of those cellular phones that runs on a battery I’ve been hearing about. ;)

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  3. Kevin,

    You can cancel the landline if you like. Just make sure you call the Telco part of Verizon (not the ISP part) and tell them you want to cancel the landline but keep the DSL service.

    It’s been nearly 4 years since I worked for Verizon Online, but they were starting that even as I was making my exit.

    Woadan

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  4. Erm, realized I hadn’t read all of your post Kevin.

    DSL service is delivered on copper, just like your voice service is. Voice service is delivered on a lower frequency than the DSL. The DSL splitter you put on the lines you don’t connect the DSL modem to is so you will filter out the DSL frequency “noise” so you can make interference-free phone calls.

    Although Verizon won’t like to see you cancel the phone service, you can have one without the other (Phone or DSL or DSL and phone) just like you can have cable or internet or both from your cable provider.

    I suspect, though I have no way to know for sure, it applies to AT&T and Qwest with their competing DSL service.

    In short, you can have “naked DSL” from Verizon.

    Woadan

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  5. Gotta learn to not push the post button so soon…

    Since Verizon does sell “naked DSL”, I don’t think this is a “perfect storm”.

    Verizon has been losing landlines quite steadily since they started selling DSL and also as cell service became cheaper and easier to get.

    College students used to get a line so they can call home for more cash, until they started to get cell phones. Younger folks entering the workforce have thus become more and more used to not having a landline, as many only had one when they lived with their parents.

    Many people have also been going over to VoIP, so they cancel their landlines.

    As cable and DSL broadband have become more ubiquitous, people have been canceling the second lines they had put in when they needed one POTS line for the Internet, and one for voice.

    They may not speak too much about it, but the telcos have been bleeding landline based services for years.

    Part of the reason I felt I had to leave Verizon Online was because all the “old hands” from the telco side saw the writing on the walls and started moving into my work area. And the bigwigs also started moving the DSL/data services under their own rulership. All of this was so everyone could remain relevent. But that made those of us who had worked for half a decade or more to build the Internet business irrelevent.

    (sigh)

    Sorry for waxing nostalgic.

    The reason the telcos are always so keen to sell other services with FiOS or DSL or Cell service is because it brings more profits in. If you kwwo your phone line with Verizon when you have DSL/FiOS and VoIP, you’re spending money you don’t need to.

    Woadan

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  6. Hello,

    I live in France and we have fiber optic internet since about 1.5 year. But we have 100 mbps up and down. So I don’t know why it would be only 15 mbps in US. Plus we have it for 30 euros per months, that is about 40 dollars per months and we have unlimited internet, unlimited phone in 170 countries (land + mobile), and more than 100 tv channels for this price. Plus we have the possibility to drop our landline. However, I have this at home and the problem is: if your internet connection is cut (either ip changing or any other problem) then you can’t phone anymore! You then need to rely on the mobile phone. That’s the only problem. Otherwise, internet speed and unlimited voip phoning works perfectly now. (voip phone used to be a bit low quality, but now it’s fixed.)

    So I hope US will get such offers soon.

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