Consumer Reports' Survey: Verizon FiOS a Leading Choice for Internet, Television,...

Consumer Reports' Survey: Verizon FiOS a Leading Choice for Internet,
Television, and Telephone Service

CR's February report also discusses how service-bundling can cut bills and
what consumers should know before choosing a provider

YONKERS, N.Y., Jan. 8 /PRNewswire-USNewswire/ -- Consumers looking for
Internet, television, and telephone service should consider Verizon FiOS. In
Consumer Reports' latest survey of several major telecom providers, featured
in the February issue, Verizon FiOS, whose network is fiber-optic based,
received superior scores for reliability and performance for its Internet,
television, and telephone services.

Because the availability of Verizon FiOS is as yet limited, many consumers
should also consider other options for these services. The article also
includes Ratings of services typically bundled from various providers based on
reader scores.

Consumers interested in services provided by a cable company may not have an
option when choosing a provider because a majority of homes only have one
cable company available in their area. According to CR's survey, better cable
companies include Cox, Bright House and Wow, which are fine alternatives to
Verizon FiOS in areas that they are available and also offer Internet and
telephone services.

If television service is a priority, satellite service may be a fine option.
DirecTV scored significantly higher than all the major cable companies and
Dish Network, the other major provider of satellite service. It also offers
hybrid bundles of its TV offerings and DSL and phone service from telephone
providers Qwest and Verizon. DirecTV's television service stacks up well
against services offered from the best cable companies and requires getting a
satellite dish and other equipment, typically free or at discount in exchange
for a contract agreement.

For Internet service offered through a cable company, Wow and Bright House did
well in CR's Ratings. Cincinnati Bell, which offers a DSL Internet connection,
was one of the higher scoring providers due to its high marks for value and
reliability. Verizon's DSL Internet service was average for value,
reliability and support, but scores for performance were lagging.

Although landline phone service offers a more reliable connection, especially
in cases of an emergency, VoIP phone service scored higher in overall
satisfaction in CR's Ratings. Cox was among the leaders especially because of
its reliability and performance. Skype was noted for its superior value, but
its scores were worse than average when it came to reliability and
performance.

Bundling Internet, Television, and Telephone Services Can Save Money

Once consumers choose a provider, they may consider signing up for more than
one of its services. So-called bundles or triple-play packages may save
consumers enough money to be worth the disruption of switching some services.
Consumer Reports' latest survey found that subscribers to many companies were
reasonably satisfied with all three of the most commonly bundled telecom
services.

A bundling mainstay is the one-year, $99-a-month package, typically made up of
a premium level of TV service, standard-speed broadband Internet service, and
telephone service with a variety of calling features. Such deals can save
consumers up to hundreds of dollars a year over the amount if the services
were received separately. Once the one-year promotional period ended, many of
http://www.ConsumerReports.org blog readers reported that they successfully
negotiated good deals for their services. Comcast was the best provider to
spell out what the fee would be after the promotional period.

Bundling is less-likely to save money for consumers whose telecomm needs are
simple - say, basic TV, minimum broadband Internet, and telephone service with
little or no long-distance calling. It can also be hard to compare bundling
packages. Some companies offer more than one package that may appear to be
identical but may have some differences when looked at closer.

Consumer Reports offers the following advice for consumers when choosing a
type of telecomm service:

Find out what's available. Only a small percentage of homes have two cable
companies to choose from; most only have one. Satellite is more widely
available, provided a home has an unobstructed view of the horizon to the
southwest. DSL is widely available in urban and suburban neighborhoods.
While fiber-optic service, such as Verizon FiOS and U-Verse from AT&T, is
spreading fast, it is still only available in about 8.5 million homes in about
one-third of the states.

Consider installation costs and safety. Consumer Reports found that consumers
may be able to haggle with providers over installation charges and other
costs. Landline telephone service is more reliable than Internet-based
telephone service, especially for making 911 calls. Landlines will continue
to work in power outages with a phone that does not require AC power. Verizon
offers battery backup at no additional cost, for its fiber-optic telephone
service. Also, the service handles 911 calls the same as a landline.

But, before signing on the dotted line, there are a few important questions
consumers should ask the provider they have selected:

What's the total cost? The first bill for bundled services may be higher than
expected because it includes installation, activation, and other fees.
Because most companies bill in advance, they may also be a charge for an
additional month's service. Consumers should also expect to pay taxes,
surcharges and monthly fees for cable boxes and remotes and other add-ons they
may have selected. Ask the company to calculate and itemize a bill for the
first and second month and trim extras that may not be really needed.

What are the consequences for dropping or changing services? Even with
providers that don't require contracts, such as many cable companies, rates
can rise if one of the bundled services is dropped or changed. Ask about
penalties or other problems that may occur if services or dropped or modified
prematurely.

Are there service limits? Providers may terminate "unlimited" telephone
calling privileges with VoIP if an unusually large number of calls are made.
Similarly, some may restrict internet uploads and download speeds if file
transfers exceed monthly bandwidth limits. Determine in advance any usage
limits, especially if consumers expect to make many long-distance calls or
download a lot of movies or other large files.

What's the post-promotion rate? Promotional bundles may allow consumers to
try out some add-ons such as additional TV channels, at little or no cost.
However, at the end of the promotion, consumers may automatically be charged
for those extras unless the company is instructed to cancel them. Near the end
of the promotion, consumers should review the package and decide whether they
want premium services when they sign up. Consumer Reports recommends haggling
to keep the same or a similar rate or to keep services that the company may
automatically delete once the promotion is over.

The complete report and Ratings are available in the February 2008 issue of
Consumer Reports, wherever magazines are sold. Portions of the story are
available for free online at http://www.ConsumerReports.org.

FEBRUARY 2008

The material above is intended for legitimate news entities only; it may not
be used for commercial or promotional purposes. Consumer Reports is published
by Consumers Union, an expert, independent nonprofit organization whose
mission is to work for a fair, just, and safe marketplace for all consumers
and to empower consumers to protect themselves. To achieve this mission, we
test, inform, and protect. To maintain our independence and impartiality,
Consumers Union accepts no outside advertising, no free test samples, and has
no agenda other than the interests of consumers. Consumers Union supports
itself through the sale of our information products and services, individual
contributions, and a few noncommercial grants.

SOURCE Consumer Reports

Melissa M. Valentino, +1-914-378-2432, mvalentino@consumer.org, or Lauren
Hackett, +1-914-378-2561 or lhackett@consumer.org, both of Consumer Reports