Verizon Hopes To Slow DSL Losses With NFL Sunday Ticket - After company loses 117,000 DSL customers in second quarter
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Verizon Hopes To Slow DSL Losses With NFL Sunday Ticket
After company loses 117,000 DSL customers in second quarter
05:37PM Wednesday Jul 29 2009 by Karl Bode
tags: prices · competition · business · bundles · Verizon FIOS · Verizon Online DSL
Verizon this week unveiled a new deal for NFL fans out of range of Verizon FiOS. Verizon's giving new customers who sign up for select DirecTV bundles NFL Sunday Ticket free for a year. To get the deal, customers need to sign up for Verizon's Freedom Essentials calling plan, DirecTV's "Plus HD DVR" service, and Verizon 3Mbps or 7Mbps DSL service for $120 per month. Customers can also get the same bundle if they substitute DirecTV's per month standard def "Plus DVR" package, paying $110.

The NFL Sunday Ticket package normally costs $299.95. The bundles require a one-year Verizon contract and a two-year DirecTV contract. Keep in mind Verizon is also giving new DSL customers either a Compaq mini netbook or a Flip Ultra camcorder as part of an announcement made back in June.

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So why is Verizon suddenly being so generous with DSL-related giveaways?

As we noted on Monday, Verizon's latest earnings report indicates that the company lost 117,000 DSL customers in the second quarter, after losing 46,000 DSL customers in the first. In a conference call with Wall Street analysts, Verizon admitted that just 20-25 percent of that 117,000 total were customers upgrading to FiOS -- the rest were migrating to cable.

While FiOS growth is good, Verizon's hoping to reverse DSL losses with promotions. "It is a great addition for the large number of people who can get DSL service...still more people than can order FiOS," Robert Elek tells us an an e-mail exchange. "And since cable likes to take a hard run at those prospects, we see this as an uber-competitive offer in those markets where copper and cable go head to head."

DirecTV recently paid the NFL hundreds of millions to extend their exclusive deal to 2014. While this arrangement works well for Verizon for now, as FiOSTV expands into more markets through 2014, they're going to want access to that content for FiOS customers. NFL fans who don't want to switch to DirecTV can only hope the collective power of both the phone and cable carriers will prevent any further extensions past 2014.

Related:
  1. Consumer Reports: FiOS, U-Verse Best Triple Play
  2. Verizon Reports Largest FiOS Additions To Date
  3. Verizon To Offer $5 Landline Service
  4. Verizon: Cut Your Landline To Save Money
  5. AT&T Offers $99 'Text, Talk & Surf' Plan
  6. FiOS Growth Slows
  7. Verizon Offers Six Months Free DSL Promo
  8. Verizon Again Hints At Metered Billing
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rit56 @ 29th Jul 05:47PM:
Where are the loses?

In NYC their dsl is terrible as is the customer service. My friend has it and he still has the same modem they gave him 10 years ago. They won't swap it out. He has TWC tv and I don't understand why he doesn't get road runner. I can't understand why they don't start running FIOS downtown. Someone here once pointed out to me they have a FIOS pipe running down 2nd Avenue. So what's the problem Verizon?
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kyler13 @ 29th Jul 05:59PM:
Redundancy

"we see this as an uber-competitive offer in those markets where copper and cable copper go head to head."

Fixed. :)
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travelguy @ 29th Jul 06:08PM:
Re: Where are the loses?

What's the modem got to do with anything? A new modem won't provide any faster speeds and as long as the older one is working, why should it be replaced? If he really wants a new modem, they cost, what, $50?
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patcat88 @ 29th Jul 06:08PM:
a blur

Now how many people will be angry when they see the ads, yet they are told by CS they can't get it because they can only get this thing called "FIOS" which isn't letting them get their gridiron. FIOS must be brought down.
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Wizeguy @ 29th Jul 06:28PM:
How Much? Are they out of their minds.....???

During football season every Sunday we (wife & I) go to our favorite Sports Bar. They feature the Tampa Bay Bucs because we live in Clearwater. But the owner always puts Da Bears on one of the larger screen TV's. He knows we are there to eat drink and have a nice afternoon out. I wouldn't give these yokels a dime for the NFL Package but I guess like they say there is one born every minute.
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TomS_ @ 29th Jul 06:28PM:
Re: Where are the loses?

Modem could be dodgy, causing unreliable service. If its 10 years old, itll be getting close to its use by date anyway.

But I agree, if he wants a new one, go and buy one, they are dirt cheap these days.
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robl27 @ 29th Jul 06:36PM:
Re: How Much? Are they out of their minds.....???

and there are OTHER ways, too. this is bullshit.
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kyler13 @ 29th Jul 07:14PM:
Re: How Much? Are they out of their minds.....???

Not sure what you're driving at. I'm not interested in spending gobs of money on the entire line-up of NFL games week in and week out, but it would be nice to see my favorite team from the comfort of my family room (and I could live with a reduced price for that). I live in MD so naturally it's Redskins/Ravens, but surprisingly there are a number of Steeler bars in the area. That doesn't mean I have time to go out for the afternoon every Sunday, with two kids and a never ending list of projects. It's called paying for convenience when free isn't always free. If you think outside that little box of yours, you might find you're wrong 4 out of every 5 minutes.
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danielr83 @ 29th Jul 07:23PM:
DirecTV's Plus HD-DVR service..

Wow! $120 per month for that plan? I have the same plan and it's 75.99 a month and that includes the HD and DVR fee. I wonder if that includes the TV plan, internet, and phone. If it doesnt, that is a complete rip off!
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anon @ 29th Jul 07:36PM:
DirecTV package price

That has to be some sort of typo. I do not even pay that much with PlusHDDVR, HBO, three rooms.
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KSUJace @ 29th Jul 07:55PM:
Those DTV monthly Prices can't be correct

Those are nearly 30-50% higher than the package prices on available on DirecTV.com.
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ISurfTooMuch @ 29th Jul 08:15PM:
A band-aid

Right now, the only reason I have AT&T DSL is because I don't have Comcast TV service, which would make cable Internet cost around $10 more a month than my DSL service. Granted, cable is faster, but I'm pretty much satisfied with the speed I get.

Having said that, however, if I had Comcast TV, this would be a no-brainer. What I'm saying is that DSL suffers from a lack of competitiveness unless you fall into some very specific set of circumstances. And hell, there are many places in this town that still can't get it, and that's after it's been available for eight or nine years. Sure, some areas have U-verse, but that's also a crapshoot, and the equipment has been up for over a year.

I know I'm comparing AT&T to Verizon, but the telco mentality seems to be largely the same across companies: "We'll give you what we feel like giving you when we feel like giving it to you, so you'd best just sit back and be patient." Then they wonder why cable is eating their lunch. No, Comcast isn't great, and there are companies that are much worse (Charter and TWC, to begin with), but they're at least doing better than the telcos in many places. The only halfway smart decision AT&T made was selling naked DSL. If they'd have tried to make me take a landline, I'd never have even considered them.

And now Verizon is trotting out this NFL gimmick. Verizon execs, if you by some slim chance are reading this, let me give you some advice (and this also goes for AT&T). If you want people to buy your product, then make it a better product! If you feel that DSL has been pushed as far as it can go in terms of speed, then get your FTTN or FTTH service to more people, and make it competitive. I don't need 200 HD channels, even though I have an HD set. Netflix fills most of my needs, with basic stuff like news and live TV being served by a relatively modest sat package. I don't give a damn that you don't want to be a dumb pipe. That's what I want: a fast, dumb pipe. Give me that at a reasonable price, and I'll do the rest, thank you very much.
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Bob61571 @ 29th Jul 08:33PM:
Re: A band-aid

said by ISurfTooMuch
That's what I want: a fast, dumb pipe. Give me that at a reasonable price, and I'll do the rest, thank you very much.
[/BQUOTE :

ISurfTooMuch...you said it.
Give me speed, NOT gimmicks only available to new customers! Why not offer something good to your long-time customers?

If you spent more time doing good for your current customers, they wouldn't leave.
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gigante @ 29th Jul 08:39PM:
Re: How Much? Are they out of their minds.....???

^^^ What he said. ^^^
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IowaStudent @ 29th Jul 10:22PM:
Re: A band-aid

^^^^^Agreed^^^^^
What about Qwest? oh that's right forget I said that :D
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patcat88 @ 29th Jul 11:01PM:
Re: Where are the loses?

said by TomS_ :

Modem could be dodgy, causing unreliable service. If its 10 years old, itll be getting close to its use by date anyway.
Electronics only have a used by date when you believe the corporate agenda (plus you make e-waste). My Speedstream 5260 has been working fine for 9 years, soon it will turn 10. Unless your speedtests are a problem, there is no reason to change the modem.
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Smith6612 @ 29th Jul 11:40PM:
Re: Where are the loses?

The only reason that the person would want to replace their 10 year old modem would be if they want to move onto the ATM network. Anyone who has had DSL for 10 years and is still using their original Wirespeed modem, they're probably still on Frame Relay running at 768kbps.
--
It's all fun and games in a Team Fortress 2 battle until your sentry gun is sapped by the Spycrab!
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TomS_ @ 30th Jul 04:44AM:
Re: Where are the loses?

said by patcat88 :

Electronics only have a used by date when you believe the corporate agenda (plus you make e-waste). My Speedstream 5260 has been working fine for 9 years, soon it will turn 10. Unless your speedtests are a problem, there is no reason to change the modem.
Its nothing to do with a "corporate agenda", or buzz words like "e-waste" (besides, there are plenty of places that will respectfully recycle waste electronics).

Its a fact that devices as old as these usually are no longer supported by their manufacturer, and this usually means that they stopped releasing firmware updates for them long ago, which means there are likely to be inefficiencies which are resolved with newer hardware/software, bugs which are fixed by newer hardware/software, and vulnerabilities which are fixed by newer software just waiting to be exploited.

"If it aint broke dont fix it", I dont disagree with this statement, but I dont follow it religiously.
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cdru @ 30th Jul 08:30AM:
Re: How Much? Are they out of their minds.....???

said by Wizeguy :

I wouldn't give these yokels a dime for the NFL Package but I guess like they say there is one born every minute.
You do realize you already indirectly do, right? Unless your favorite sports bar offers free food and drinks, a portion of the profits from your bill is used to pay the costs of the bar's NFL:ST bill. You obviously aren't footing the entire bill, but you are still paying for it.

The subscription is worth it if you are willing to pay for it.
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cdru @ 30th Jul 08:45AM:
Re: Those DTV monthly Prices can't be correct

said by KSUJace :

Those are nearly 30-50% higher than the package prices on available on DirecTV.com.
The $120 or $110 is the triple play price for all 3 services, not just DirecTV.
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AMDUSER @ 30th Jul 08:49AM:
Re: Where are the loses?

If they want to stop the DSL customers from leaving, how about increasing the dsl service speeds.. from 7.1/768 to 15 Meg / 1 Meg using adsl2, which is installed in quite a few of their central offices.

Speed sells...
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footballdude @ 30th Jul 09:14AM:
Re: How Much? Are they out of their minds.....???

I used to subscribe to Sunday Ticket and it's great. The price has definitely gotten out of hand, though. I dropped it last year.

When I first subscribed it was $120 a year. Now it's $300 a year and you have to pay an extra $100 for HD. Considering I can see three games on the major networks in HD for free, ESPN & NBC games at night in HD, and NFL network replays for any game I might have wanted to see but missed, there's no reason at all to drop that kind of cash anymore.
--
It's a trick. Get an axe. - Ash
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n2ubp @ 30th Jul 09:35AM:
Verizon pisses off more subs than you can shake a stick at..

I heard the horror stories from friends across the nation. Way too often Verizon does not honor new sub install appointment commitments. They close install and trouble tickets before the work is complete or if they can't keep an appointment without telling the customer. The subs have to claw thru a gauntlet to shake any status info out of Verizon. It takes WEEKS for DSL trouble tickets to be serviced.... and they want to whack 8,000 employees? It is OBVIOUS Verizon does not want to be in the residential ADSL business. :o
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penberth @ 30th Jul 12:52PM:
Make that 117,001 subscribers....

I just got cable installed, and am on the verge of canceling my DSL....for the same reason, speed.

I checked into dropping my voice landline in favor of dry loop dsl, and VZ wants to charge an extra $10.00 / month for that bring my bill to $39.99 for dry loop 3mb dsl....which is really more like 2.5mb dsl.

I can get 10mb cable with powerboost for $29.95 / month with no contract...A few speed tests had me hitting almost 28mb down....

I called VZ, and no 7.1mb DSL is available to me....so like I said, make that 117,001....
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InvalidError @ 30th Jul 02:50PM:
Re: Where are the loses?

said by TomS_Its a fact that devices as old as these usually are no longer supported by their manufacturer, and this usually means that they stopped releasing firmware updates for them long ago, which means there are likely to be inefficiencies which are resolved with newer hardware/software, bugs which are fixed by newer hardware/software, and vulnerabilities which are fixed by newer software just waiting to be exploited. [/BQUOTE :

As long as the modem is not misbehaving, there is no reason to update the firmware, the risk of bricking the device typically outweighs the gains. In some cases, such as Thomson's SpeedTouch DSL modems, the most obvious "benefit" of newer firmwares is more tweaking/diagnostic features getting locked down, not particularly desirable.

As for the vulnerabilities, only two parties have access to your modem's firmware when it is in bridged mode: your carrier and your LAN. If either of those launches an exploit against your modem, you have a more serious issue on your hands than the unlikely modem exploit itself.
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Wizeguy @ 30th Jul 03:44PM:
Re: How Much? Are they out of their minds.....???

Well I could also sit in my driveway and turn on my SIRIUS/XM Radio and "tailgate". But old folks like us would rather sit around on a Sunday with some friendly folks watching the games, eating some wings, high fiving and all that rubbish. Of course we realize we are helping by paying and keeping the Sports Bar in business is in our interest. Plus the watiresses are young hot and sweet. (ha my dirty old man is showing)
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rob316 @ 30th Jul 05:21PM:
Re: Make that 117,001 subscribers....

Make that 117,002, I am getting Comcast HSI and CDV tomorrow and cancelling Verizon.
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