Broadband rumble: Verizon vs. Bright House

By GRACE GAGLIANO

BRADENTON — Verizon is hardly tiptoeing on Bright House Network’s turf anymore.
The communications company this month lowered its pricing on monthly contracts for new Tampa Bay customers to more directly compete for local market share.
And with the restructured pricing comes an aggressive marketing campaign in which Verizon is targeting Bright House with advertisements that state: “Why settle for Bright House? It’s time for something better.”
Copycat claim
Bright House says Verizon’s new strategy is simply playing copycat to its television, Internet and phone service bundles that have been around for about five years.
Verizon, however, says consumer feedback prompted the changes.
Let the bout over broadband bundles begin.
Verizon on May 16 ditched the additional $20 to $30 fees new FiOS customers in Tampa Bay had to pay a month for television, Internet and phone if they didn’t commit to an annual contract.
Pricing is close
Verizon competitively priced its FiOS television, FiOS Internet and home phone bundle at $99.99 for its monthly contracts. Bright House’s bundles start at $99.95 a month.
Bright House is the seventh largest multiple cable system operator in the United States and has been offering cable and Internet services in the Tampa Bay market for several years. About five years ago, Bright House added phone services.
Verizon is a relatively new player in the ring as the company began expanding its FiOS services to Manatee County in 2006.
Joe Durkin, spokesman for Bright House Networks, said Verizon’s pricing and contract adjustments are an attempt to copy what Bright House has always offered for consumers: monthly contracts without penalties.
“At Bright House Network there’s never been a requirement for a contract,” Durkin said. “I see the phone company really just trying to copy the success and following what Bright House has traditionally done and that is never require a contract. What can’t be duplicated is the commitment and culture of customer service excellence that is job No. 1 at Bright House.”
Bob Elek, spokesman for Verizon, said Verizon ditched the penalty fees on month-to-month contracts in an attempt to persuade more consumers to try FiOS.
“Over a period of time we’ve heard from a number of customers that that was a bit of a barrier in terms of making the purchase of FiOS,” Elek said.
Negative feedback
In addition, negative consumer feedback prompted Verizon to offer a grace period in which customers who opted for a two-year contract could cancel in the first 30 days of service without being charged a cancellation fee.
Since implementing the service changes, Elek said FiOS Internet sales increased 25 percent.
Joan Moyer, president of the International Telecommunication Professionals Exchange, said Verizon’s reported sales increase doesn’t surprise her as long-term contracts can deter consumers.
“I think some of the concerns particularly in this economy are tying yourself into a long-term plan,” Moyer said. “Some may be willing to sign a long-term contract for a less expensive rate but then if you don’t like the service, you’re stuck.”
Verizon is spreading the word with advertisements in all forms of media, Elek said. But perhaps one of the more aggressive ads is at www.youdeservebetter.com.
The website directed to Bright House consumers says to “see what you’ve been missing” and compares Verizon’s services with Bright House.
Elek says Verizon’s ads are more aggressive than usual but added they are no more aggressive than Bright House’s ads that “scared” consumers over contracts.
Moyer said she doesn’t expect the companies will continue to go back and forth on the issue through advertising, but added competition in any industry will stir up the creative playing field.
“They’ll probably get a little more creative with their ads,” Moyer said. “If you look at the ads between Apple and PC, the ‘I’m a Mac, I’m a PC’ ads, they’re very clever and they get the point across. I think you’ll probably see some of the same creative ads here directed to consumers.”