February 2008
CONSUMER REPORTS’ SURVEY: VERIZON FiOS A LEADING CHOICE FOR INTERNET, TELEVISION, AND TELEPHONE SERVICE
CR’s February report also discusses how service-bundling can cut bills and what consumers should know before choosing a provider
YONKERS, NY — Consumers looking for Internet, television, and telephone service should consider Verizon FiOS. In Consumer Reports’ latest survey of several major telecom providers, featured in the February issue, Verizon FiOS, whose network is fiber-optic
based, received superior scores for reliability and performance for its Internet, television, and telephone services.
Because the availability of Verizon FiOS is as yet limited, many consumers should also consider other options for these services. The article also includes Ratings of services typically bundled from various providers based on reader scores.
Consumers interested in services provided by a cable company may not have an option when choosing a provider because a majority of homes only have one cable company available in their area. According to CR’s survey, better cable companies include Cox, Bright House and Wow, which are fine alternatives to Verizon FiOS in areas that they are available and also offer Internet and telephone services.
If television service is a priority, satellite service may be a fine option. DirecTV scored significantly higher than all the major cable companies and Dish Network, the other major provider of satellite service. It also offers hybrid bundles of its TV offerings and DSL and phone service from telephone providers Qwest and Verizon. DirecTV’s television service stacks up well against services offered from the best cable companies and requires getting a satellite dish and other equipment, typically free or at discount in exchange for a contract agreement.
For Internet service offered through a cable company, Wow and Bright House did well in CR’s Ratings. Cincinnati Bell, which offers a DSL Internet connection, was one of the higher scoring providers due to its high marks for value and reliability. Verizon’s DSL Internet service was average for value, reliability and support, but scores for performance were lagging.
Although landline phone service offers a more reliable connection, especially in cases of an emergency, VoIP phone service scored higher in overall satisfaction in CR’s Ratings. Cox was among the leaders especially because of its reliability and performance. Skype was noted for its superior value, but its scores were worse than average when it came to reliability and performance.
Once consumers choose a provider, they may consider signing up for more than one of its services. So-called bundles or triple-play packages may save consumers enough money to be worth the disruption of switching some services. Consumer Reports’ latest survey found that subscribers to many companies were reasonably satisfied with all three of the most commonly bundled telecom services.
A bundling mainstay is the one-year, $99-a-month package, typically made up of a premium level of TV service, standard-speed broadband Internet service, and telephone service with a variety of calling features. Such deals can save consumers up to hundreds of dollars a year over the amount if the services were received separately. Once the one-year promotional period ended, many of www.ConsumerReports.org blog readers reported that they successfully negotiated good deals for their services. Comcast was the best provider to spell out what the fee would be after the promotional period.
Bundling is less-likely to save money for consumers whose telecomm needs are simple – say, basic TV, minimum broadband Internet, and telephone service with little or no long-distance calling. It can also be hard to compare bundling packages. Some companies offer more than one package that may appear to be identical but may have some differences when looked at closer.
Consumer Reports offers the following advice for consumers when choosing a type of telecomm service:
CR’s February report also discusses how service-bundling can cut bills and what consumers should know before choosing a provider
February 2008 Issue
Because the availability of Verizon FiOS is as yet limited, many consumers should also consider other options for these services. The article also includes Ratings of services typically bundled from various providers based on reader scores.
Consumers interested in services provided by a cable company may not have an option when choosing a provider because a majority of homes only have one cable company available in their area. According to CR’s survey, better cable companies include Cox, Bright House and Wow, which are fine alternatives to Verizon FiOS in areas that they are available and also offer Internet and telephone services.
If television service is a priority, satellite service may be a fine option. DirecTV scored significantly higher than all the major cable companies and Dish Network, the other major provider of satellite service. It also offers hybrid bundles of its TV offerings and DSL and phone service from telephone providers Qwest and Verizon. DirecTV’s television service stacks up well against services offered from the best cable companies and requires getting a satellite dish and other equipment, typically free or at discount in exchange for a contract agreement.
For Internet service offered through a cable company, Wow and Bright House did well in CR’s Ratings. Cincinnati Bell, which offers a DSL Internet connection, was one of the higher scoring providers due to its high marks for value and reliability. Verizon’s DSL Internet service was average for value, reliability and support, but scores for performance were lagging.
Although landline phone service offers a more reliable connection, especially in cases of an emergency, VoIP phone service scored higher in overall satisfaction in CR’s Ratings. Cox was among the leaders especially because of its reliability and performance. Skype was noted for its superior value, but its scores were worse than average when it came to reliability and performance.
Bundling Internet, Television, and Telephone Services Can Save Money
Once consumers choose a provider, they may consider signing up for more than one of its services. So-called bundles or triple-play packages may save consumers enough money to be worth the disruption of switching some services. Consumer Reports’ latest survey found that subscribers to many companies were reasonably satisfied with all three of the most commonly bundled telecom services.
A bundling mainstay is the one-year, $99-a-month package, typically made up of a premium level of TV service, standard-speed broadband Internet service, and telephone service with a variety of calling features. Such deals can save consumers up to hundreds of dollars a year over the amount if the services were received separately. Once the one-year promotional period ended, many of www.ConsumerReports.org blog readers reported that they successfully negotiated good deals for their services. Comcast was the best provider to spell out what the fee would be after the promotional period.
Bundling is less-likely to save money for consumers whose telecomm needs are simple – say, basic TV, minimum broadband Internet, and telephone service with little or no long-distance calling. It can also be hard to compare bundling packages. Some companies offer more than one package that may appear to be identical but may have some differences when looked at closer.
Consumer Reports offers the following advice for consumers when choosing a type of telecomm service:
- Find out what’s available. Only a small percentage of homes have two cable companies to choose from; most only have one. Satellite is more widely available,
provided a home has an unobstructed view of the horizon to the southwest. DSL is widely available in urban and suburban neighborhoods.
While fiber-optic service, such as Verizon FiOS and U-Verse from AT&T, is spreading fast, it is still only available in about
8.5 million homes in about one-third of the states.
- Consider installation costs and safety. Consumer Reports found that consumers may be able to haggle with providers over installation charges and other costs. Landline telephone service is more reliable than Internet-based telephone service, especially for making 911 calls. Landlines will continue to work in power outages with a phone that does not require AC power. Verizon offers battery backup at no additional cost, for its fiber-optic telephone service. Also, the service handles 911 calls the same as a landline.
- What’s the total cost? The first bill for bundled services may be higher than expected because it includes installation, activation, and other fees.
Because most companies bill in advance, they may also be a charge for an additional month’s service. Consumers should also
expect to pay taxes, surcharges and monthly fees for cable boxes and remotes and other add-ons they may have selected. Ask
the company to calculate and itemize a bill for the first and second month and trim extras that may not be really needed.
- What are the consequences for dropping or changing services? Even with providers that don’t require contracts, such as many cable companies, rates can rise if one of the bundled services
is dropped or changed. Ask about penalties or other problems that may occur if services or dropped or modified prematurely.
- Are there service limits? Providers may terminate “unlimited” telephone calling privileges with VoIP if an unusually large number of calls are made.
Similarly, some may restrict internet uploads and download speeds if file transfers exceed monthly bandwidth limits. Determine
in advance any usage limits, especially if consumers expect to make many long-distance calls or download a lot of movies or
other large files.
- What’s the post-promotion rate? Promotional bundles may allow consumers to try out some add-ons such as additional TV channels, at little or no cost. However, at the end of the promotion, consumers may automatically be charged for those extras unless the company is instructed to cancel them. Near the end of the promotion, consumers should review the package and decide whether they want premium services when they sign up. Consumer Reports recommends haggling to keep the same or a similar rate or to keep services that the company may automatically delete once the promotion is over.
