![]() FIOS penetration is only about 1/3 in the places where service is offered. Most of the cost of building and maintaining fiber is getting to the neighborhood. The special-offer pricing is not meaningful. That means it'll take 10-15 years to recoup the initial cost of the build-out. So the average customer cost about $2,500 to wire-up. Verizon spent about $20 billion on FiOS, and has about 7-8 million customers. That means the up-front cost of your connection is being recouped at $10-20 per month at most. After accounting for depreciation, interest, and taxes, it's under 5%. That's what's left after paying for ongoing maintenance, support, and bandwidth, but before accounting for recouping the cost of the original build. Verizon wireline's EBITDA margin these days-five or six years after the end of significant network expansion-is about 22%. Instead, it books a capital asset that is depreciated over time. When Verizon spends a bunch of money to wire up a neighborhood, that doesn't come out of profits. So far, things have been okay on both pricing and having a usable connection, despite a few initial goofs by Cablevision. Bandwidth is lower, but I reason that as long as bandwidth is high enough to deliver traffic with acceptable latencies, being able to burst higher does not matter that much. I am paying Cablevision ~$45 a month now. The supervisor waived it.Īfter breaking the bundle, I took over responsibility for such bills. I managed to talk my way out of the ETF by telling a supervisor that the ETF was the same whether I cancelled all services or just 2 and that I was giving Verizon the chance to keep some business, provided that they reduced services to just the Internet connection and waived the ETF. The $71.48 came after breaking the bundle I favor of an OTA antenna and VoIP. Had I been, I would have been fed up well before things became that bad. Sadly, I was not the one who negotiated with them. Nearly all of those years had involved a triple play, for which they had raised rates until they charged ~$162 a month. The reason that I got fed up was that they kept trying to get more. A technician visit at that rate would probably eat just 1 month of profit on a connection whose initial installation cost had been paid many times over. How much does your ISP charge you? Verizon managed to get $71.48 a month out of me on a connection that had been set up by a technician nearly 10 years prior before I got fed up.
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