Verizon Communications is raising lease fees for FiOS TV digital video recorders and set-tops, with DVRs increasing 6% -- from $15.99 to $16.99 per month -- and set-top box rates in the New York metro area jumping 17%, to $6.99 monthly.
The DVR rate change will become effective May 6 for all FiOS customers, including those who currently have a promotional rate of $12.99 per month. Effective April 23, standard-definition and HD set-top box prices will go up $1, from $5.99 to $6.99 per month, for customers in New York, northern New Jersey and Connecticut.
The multiroom DVR will remain $19.99 per month, according to Verizon.
On Verizon's fourth quarter 2011 earnings call in January, chief financial officer Fran Shammo said the company would likely increase FiOS TV prices this year.
"I know folks are saying that we are overly competitive in pricing [on FiOS]. But what I would say is that the pricing has not actually changed," Shammo said on the call. "And if anything, if you look at it, there was a price increase in 2011, and there will probably be some more price increases in 2012 as we go here."
Verizon said the rate hikes are the first price changes to its set-top boxes and DVRs since 2008.
"Verizon is constantly enhancing our FiOS TV offering with new channels, new features and new technology that makes it the best home entertainment experience around," the telco said in a statement. "In order to continue bringing more exciting features to customers' homes, we sometimes need to modify pricing. Consequently, we are increasing the price of our basic DVR as well as the HD and SD set-top boxes in NY, Northern NJ and CT."
FiOS TV customers can expect ongoing enhancements to the service, including more HD channels and new features, Verizon added.