Verizon to Sell Cable and Internet Service Separately

Category: Business


Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. bundle / ˈbʌn dl / (n) – a package that offers items or services for a single price 

    The store offers a rainy day bundle that includes an umbrella, a pair of boots, and a hooded jacket.

  2. surcharge / ˈsɜrˌtʃɑrdʒ / (n) – an additional fee or payment

    Passengers need to pay a surcharge at the airport if their baggage weighs over 40 kilograms.

  3. tier / tɪər / (n) – one of several rows, layers, or levels

    Because of my promotion, I moved up to the second tier of management.

  4. pick out / pɪk aʊt / (phrasal) – to choose or select something from a list of choices

    The chairman will pick out the winner of the Employee of the Year award.

  5. transparency / trænsˈpɛər ən si / (n) – the state or quality that makes something easy to see or understand

    Employees urged the management to show more transparency when it comes to the company’s finances.


Read the text below.

Global telecommunications company Verizon is cutting cable and Internet bundles to offer customers a build-your-own cable and Internet plan.

According to the company, it is eliminating its one- and two-year Internet and cable bundle contracts that often caused customer complaints. Customers expressed frustration over having to buy services they do not need or paying unexpected surcharges after the introductory period of their subscription ends.

The company’s move is a response to the rise of cord-cutting, the act of switching from a pay-TV subscription to an Internet-based streaming service. Verizon reported that in the third quarter of 2019 alone, the company lost over 65,000 Internet and cable bundle subscribers.

Under the new plan, Verizon will offer three tiers of Internet packages based on speed. The rate starts at around $40 per month, and customers can save $15 monthly if they use their own router. Verizon will also sell five cable TV plans, starting at $50 monthly. Customers will choose five channels, while Verizon will pick out the rest of the over 125 channels based on the customers’ preferences.

The new subscription plan will give users more options and ensure transparency when choosing services from Verizon. Through the new plan, customers can also cancel their subscription anytime they want for free.

However, Philip Swann, a journalist and cable TV expert, is skeptical about Verizon’s new service. He said that, essentially, the five channels that customers choose become part of a bundle because Verizon gets to choose the other over 125 channels.

One business analyst, on the other hand, finds Verizon’s move interesting because even though it makes it easier for customers to practice cord-cutting, it can still boost the company’s sales.

Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Given the rise of Internet-streaming services, do you think cable TV will continue to decline in the future? Why or why not?
• In your opinion, will Verizon’s new subscription service effectively lessen cord-cutting? Why or why not?

Discussion B

• If you could create your own bundled product or service, what would it be? Why?
• Do you think bundling products or services is an effective selling strategy? Why or why not?