Verizon to investors: FIOS is doing so well that we’re raising prices … again!

Dear FCC and Congress: Tell me again how the marketplace has become competitive enough to dump local loop unbundling. Darth V’s FIOS product faces so little competition in either speed or price, that they’ve been able to incrementally bump prices on a regular schedule. The average big bundle FIOS customer pays around $150 for what can be had for $40 in Paris. Before we start hearing excuses, France has a more antiquated legacy infrastructure, more labor union control of business, higher taxes, higher salaries and a shorter work week.

Discussing this morning’s earnings, Verizon CFO Doreen Toben told investors, analysts and reporters on a conference call today that FiOS users can expect a new round of price hikes this quarter. “You may recall we increased prices for selected products in the first quarter last year,” said Toben while discussing FiOS (see transcript (pdf)). “We anticipate increasing prices once again in certain products and bundles in the second quarter this year.” Which FiOS products and bundles was not specified.

Verizon has consistently nudged up the price of FiOS broadband, especially for customers who refuse to sign up for long term contracts or add additional bundled services. Standalone broadband service jumped $5 in many markets last fall, while double and triple play bundles have consistently increased anywhere from $5 to $20 since FiOS was launched (depending on the product market). (Broadband Reports)