Verizon To Increase Price On FiOS TV Service

Certain industry insiders had been worried that Verizon had planned on initiating a price war on cable operators. Instead, Verizon actually raised the price on FiOS TV service by a modest $3 per month. This move makes experts think that a price war with cable operators is now much more unlikely.

Verizon will raise the monthly fee for the FiOS Premier TV service for new subscribers by about $3 to $42.99 starting in January, a company spokesman said this week.

The reasons for the price hike are elementary. Both programming costs and the cost of Verizon's huge network buildout are higher than expected. They're passing the deficit along to consumers as a way to defray costs.

This is merely one round in what promises to be a lengthy war with cable operators.