How much will naked FiOS cost Verizon?


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.


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