Verizon is moving away from traditional cable bundles and contracts for its Fios fiber-optic internet and TV service as the company seeks to curb the effects of cordcutting as the trend of ditching pay TV services for online ones continues to gain momentum.
On Thursday, Verizon said it would offer fiber-optic internet and television service as separate products with month-to-month prices ranging from $40 to $80 a month for internet service and $50 a month to $90 a month for television service. Customers who subscribe to both will pay between $90 to $170 a month.
The changes were widely reported as Verizon’s attempt to stave off cordcutting, the practice of switching away from traditional cable and satellite services for online ones. Though these services still require an internet connection — and since most cable companies double as a town’s internet service provider — the cable companies are still getting money, just not as much as if a household subscribed to an additional service like pay TV or home phone.
Verizon is calling their new business practice “Mix & Match.” In a press release, the company said it was “disrupting” the cable industry and promised “price transparency” with “no extra fees” like regional sports fees, broadcast fees or municipal taxes and surcharges.
But Verizon isn’t moving away from the traditional cable model altogether — it’s still charging customers for things like installation and set-top boxes for multiple rooms, fees most cordcutters don’t have to pay. These fees were sometimes covered by special package or contract deals offered by Verizon.
Verizon is offering internet customers the option of subscribing to YouTube TV instead of its own Fios TV. YouTube TV costs $50 a month and doesn’t come with added installation or set-top box fees.