Verizon sued for allegedly inflating FiOS subscriber numbers

Although FiOS just celebrated its second birthday last month, the third year isn't exactly off to a sensational start. Reportedly, Digital Art Services, a New York-based advertising company, has slapped Verizon Communications with a lawsuit alleging that the firm "overstated subscribers to its fiber-optic service and charged inflated prices for advertisements there." Essentially, the plaintiff is suggesting that Verizon included "pending customers" in its public subscriber reports which were "false and inflated." Interestingly, a spokesperson for Verizon stated that while he had yet to see the lawsuit, it sounded like a "garden variety business dispute." Of note, Digital Art was informed that pending customers could be included "as they were usually converted to active subscribers within two weeks," but it found that many prospective buyers "waited up to 10 months for their service to become active."

[Totalfixation @ Oct 5th 2007 4:11AM]

And what types of damage is Digital Art Services suing for? I say Verizon should just let them out of there contract so that they wouldn't get any more bad publicity.

[Jordan @ Oct 5th 2007 5:59AM]

digital art services paid a high price for advertising on FIOS because verizon said they had, say, 10 million customers. digital art services finds out that there are actually only 5 million customers, so their advertisements are only half as effective, and they should have paid half the price.

[I LOVE THE CAPS LOCK KEY @ Oct 5th 2007 4:30AM]

I am still waiting for FiOS service in my area. Last I heard, someone told me that it's gonna take 10 years before they get a line to my place. My point is obvious, fiber optic lines are only in a few residential areas and most of them are due new construction.

[Matt @ Oct 5th 2007 1:44PM]

Wow, you are totally off-base. I live in a neighborhood where the homes date back almost 80-years in Northern New Jersey, and guess who is getting FIOS next week? ME.

Sure, FIOS will take time to penetrate rural or poor neighborhoods for economic reasons, but the vast majority of Verizon's customers will probably have the option within the next two years -- regardless of whether its old or new construction. Just hold tight, after all DSL wasn't available everywhere at first too -- especially in rural neighborhoods.

[I LOVE THE CAPS LOCK KEY @ Oct 5th 2007 5:32PM]

@MATT

You fail at reading comprehension, so I will repeat: MOST (NOT ALL) new lines are in areas that were recently developed.

What I should have mentioned in my original post:
Any new fiber installations are typically installed in homes that are very close (less than 2miles) to major highways and busy roads. Drive 10 minutes to from my place to my sisters home and she is able to get FiOS if she wanted to, that is because she is close to a major state highway and in a new development. I also have a cousin in another state who is a FiOS subscriber, he too lives in a WWII era home, but it sits right in front of a major and very busy highway.

As for me, I live 3-4 miles from a highway near way too many old people (retirement community) who don't even know what the internets is and would not be good potential customers for Verizon until all the baby boomers have retired.

If need more proof, then take some time as I have and examine a geographic map of FiOS subscribers.

[waiownsyou @ Oct 5th 2007 6:18AM]

Only in the US can you sue for stuff like this

[Daryl Herbert @ Oct 5th 2007 6:46AM]

You mean "fraud"?

Like 90% of our law, we got that from Britain. It's not our fault that one business can sue another when it's been cheated.

[Peter Harris @ Oct 5th 2007 6:30AM]

FIOS is pretty nifty, but when I was signing up I noticed something weird. I did the online setup, and from work (Verizon DSL) and from home (Comcast) I was getting different price quotes. From work it was more expensive and did not offer the same packages as when I checked at home. (Using my home address)

I don't know about you, but that is quite fishy.

[Adrian Williams @ Oct 5th 2007 9:28AM]

Verizon has always said they PASSED 10+ million homes they never said they had 10 million customers for FIOs

[Kiwi616 @ Oct 5th 2007 9:31AM]

To my understanding FIOS is not in my area (Queens, NY), but will be shortly as it's already in Long Island. I know from my Brother-in-law that the stated rate is only for the 1st year and after that it gets bumped up a lot. Not to mention if you want out, you have to get charged a disconnect fee, which is pretty much a termination fee for a contract that is completed. It is pretty shady to me.

[ObsessedAudiFan @ Oct 5th 2007 9:54AM]

fios has been in staten island for over a year now, at two years i think. still the point is that this is a fraud case, where the defendant supposedly misrepresented the number of subscribers and thus charged too much for advertising on the network. yawn, just another day in the office if you're verizon.

[kev @ Oct 5th 2007 10:08AM]

Still no FIOS in Brooklyn. Zzzz.

[Paladyn @ Oct 5th 2007 2:36PM]

I live in a neighborhood that it neither poor nor rural. The average house on my street has a value of $600,000-$750,000, and it's just outside city limits. FIOS is not available here, even after being hyped to death.

[Paul J. @ Oct 5th 2007 2:09PM]

Why inflate it artificially? If they would just offer the damn service in more places, people would jump on it like crazy. This rollout has been slower than anything. The minute it's available in Ohio I'd be getting it.

[iRobot @ Oct 5th 2007 2:13PM]

Verizon is so full of crap. Doesn't anybody ACTUALLY have Fios, that's NOT from a small town in Texas (the test site). Anyone that lives in a MAJOR CITY, or a tier 2 city?

San Francisco has nothing, the Fios website states that it's here in the city, but when you call customer service -- excuses excuses excuses. Whatever. I've moved on to Internet TV and Apple downloads. Who need you Verizon.