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Verizon Sets First FiOS Rate Hike

By Steve Donohue -- Multichannel News, 11/20/2006 1:55:00 PM

Verizon Communications plans to raise the rates for its most widely distributed Verizon FiOS TV programming packages by 7.6% in January.

Beginning Jan. 8, the price for its 200-channel FiOS TV Premiere package will increase from $39.95 to $42.99 monthly for new customers in New York, New Jersey, Texas, Massachusetts, California, Florida and Maryland, Verizon spokesman Cliff Lee said Monday. New customers in Virginia will see the price increase go into effect Jan. 14, he added.

Lee said existing FiOS TV customers will continue to be charged the initial $39.95 monthly price Verizon put in place when it first launched its pay TV service in 2005.

“It’s our way of thanking our customer that initially signed up for us. Most of them are cable converts,” he added.

But existing FiOS TV customers could eventually see the same price increases, Lee said. Unlike its cable competitors, Verizon charges the same rate for its pay TV service nationwide.

Lee said the price increases in the FiOS TV Premier package reflect an “increased value for the service,” including the addition of more than 20 channels to the package.

Verizon is also increasing the prices for its basic-cable and premium-channel packages. Its FiOS TV Local package, which includes local broadcast channels, will increase from $12.95 to $12.99 monthly for new customers in January.

The telephone company is also increasing the rate it charges for premium channels by $1.04 monthly in January. Verizon currently charges $11.95 monthly for a package that includes Starz, Showtime, Encore, The Movie Channel, Flix and Sundance Channel; $14.95 monthly for either HBO or Cinemax; and $24.95 monthly for HBO and Cinemax combined.

Verizon also plans a $3 monthly increase for an adult subscription-video-on-demand product, Lee said.

FiOS TV customers in Virginia received notices about the price increases last week. Customers in remaining FiOS TV states will be notified in early December, Lee said.

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