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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.