This is a chat I had with a very friendly support person at Frontier Communications. Frontier acquired Verizon’s FiOS high-speed Internet connection business a few years back. I changed the support person’s name.
Elia: Hi. I received a flyer in the mail regarding re-upping my contract and it offered an Apple gift card. I missed that window but thought I’d check in regarding re-upping, see if there are any deals, and what the rate would be to do so. My contract expires in July, I think.
Tom: Yes if you renew your services on a 2 year term and added a security product it would be a $150 apple gift card if you just renew on a 2 year term it’s the $100 gift card
Elia: Has the price changed? I’m currently paying $50/month plus taxes.
Tom: Looking at your current plan for the price you have the best service as you would lose upload speed and pay $5/mo more
Elia: So extending my current plan would still get me 35 Mbps up/down at $50/month + taxes?
Tom: no it would be on new pricing and services 59.99/mo pretax for Fios 35/15
Elia: That’s significantly worse then what I have now.
Elia: If I don’t renew what happens?
Tom: nothing your services continue as they are
Elia: Same price as I have now?
Elia: Not much incentive to renew then. 🙂
Elia: Okay… thanks for your time Tom. I will leave my account as is.
Tom: OK. Is there anything else I can assist you with today?
Elia: Nope. Have a good day.
I’ve been a happy FiOS customer since I could get it but I really don’t understand this decision from a business perspective for Frontier. In essence, if I don’t sign a new contract, I will get significantly faster upload speeds at a lower price. Seems backwards to me.
It’s a tax on the stupid: they hope that the “gift card” will blind you to the crappy underlying economics of their offer.