Is Verizon FIOS Pricing Misleading?

Verizon is offering a fantastic deal on high-speed Internet connections. But the firm is leaving existing FIOS customers out in the cold. Totally.

We’ve had FIOS service at the Frugal, Wealthy and Wise House since 2012. Currently we are paying $74.99 per month for a 50 Mbs network connection and a phone line – no TV package, of course. (But $74.99 does morph into $87.59 after the extraneous fees are piled on.)

Last week, I encountered this offer (above) on Verizon’s website: a phone line plus a so-called Gigabibit connection for the same price I am currently paying: $74.99 a month.

Folks, this is a network connection 20 times faster than my current connection for the SAME price.

Now I can understand that Verizon is running promotions to attract new subscribers. If they were offering, say, 75 Mbs for 74.99 per month to new customers, I could deal with it. But we are talking about a difference of 20 times the network speed. Here’s what that looks like on a graph:

Intrigued (and miffed), I took action. I did what any Frugal and Wise individual would do. I called Verizon for a better deal. But it was all for naught.

I communicated with three customer service agents that day (one by messaging, two by phone). All three thanked me for being a ‘long-time Verizon customer’.  Yeah. Right. And they certainly would be glad to set me up with a Gigabit connection for… a mere: $124.99 per month plus taxes and fees. That’s 67% more than a new customer would pay. Is this because I am such a loyal, long-time customer???

Is Verizon purposely pulling a Bait and Switch?

I’m no a legal expert. But this I do know. Verizon is continually sending out mass mailings and newspaper stuffers heralding their great FIOS deals. These promotional materials reach both FIOS and non-FIOS households alike.

The Final Straw: Stonewalled by Ms. Johnson

The last customer agent I spoke to was Ms. Johnson. (I don’t know which of the many Ms. Johnsons at Version she is; she refused to provide her first name.) Presumably, Ms. Johnson had the authority to make pricing concessions. No such luck. She completely stonewalled me. I inqured about getting a smaller network speed increase for the same monthly fee. Would not do. I mentioned that I had a blog on personal finance, that my experience with Verizon would be posted and that I would also be contacting the CEO of Verizon as well as registering complaints with numerous state and federal regulatory commissions. Ms. Johnson absolutely refused to do anything. But she did assure me that I was a ‘valued Verizon customer’. So, Ms. Johnson, I am being true to my word.

Why is Verizon so intent on alienating its existing FIOS customer base?

Taking such a hard, uncompromising stand with current FIOS customers can’t be good for business. And telling current customers that they are valued is pure bunk.

At this point I see no option but to take this cause directly Frugal, Wealthy and Wise readers, Verizon senior management and the appropriate regulatory agencies.

A Call to Action
  1. If you are not a FIOS customer but have FIOS available to you, go for it! The FIOS Gigabit plans are great deals!
  2. If you are an existing FIOS customer left out in the cold, press Verizon for a better deal. Call 877-359-7871 and mention that you are interested in a gigabit internet package. Insist on speaking to someone who has the authority to provide you a better deal. The more folks doing this, the better. If you are successful, post here!  We would love to leverage and replicate your success.

This is not a one-off rant. I believe that existing FIOS customers deserve a bit of accommodation. Future postings will be document next steps taken with Verizon.

I’ll be in touch real soon. Paul

© 2017 Paul J Reimold

 

 

 

 

 

 

 

 

 

Leave a Reply