The set-top box issue is real, but it's a consumer problem as much as it is a cable/fiber/satellite television service provider problem. Typical set-top boxes can cost anywhere from $200-500, depending on features and technologies. Boxes featuring DVR (hard drives), HD (high-end graphics processors), and expansion slots/interfaces do cost more money, but most U.S. consumers have not shown a willingness to pay for them up front. As such, providers like Verizon are being forced to "rent" them, recouping the high costs via a combination of the rental fees and (even higher) monthly service revenues. The one box that is widely known to exist for open-market purchase and use with FiOS is the TiVo HD DVR, which can be purchased for around $250-300 but requires a TiVo subscription as well.

This issue is quite reminiscent of the same issue faced by the mobile phone service providers. A typical mobile phone costs $150-400 from the manufacturer, but retails for $29-$199 from the service provider as long as the subscriber signs up for a monthly service contract. You can buy mobile phones on the secondary market, but they often do not work with all networks and are significantly more expensive. Most Americans choose not to purchase them that way, while consumers in places like Europe, Australia, India, and other areas are more used to purchasing mobile devices on their own from retailers.

Changing this paradigm is likely to require not only increased openness by the service providers but also support from the sales channels and changes in consumer willingness to pay for the equipment up front.

@Dan Hays--I for one would, happily pay upfront if I had the opportunity. My point, beyond the grumbling about terrible customer service in general, is that Congress mandated that MSOs separate conditional access from content 13 YEARS ago. It's long past time that this mandate were enforced (and extended to the telco TV services.)

Steve, you're certainly right - why pass the law if you don't intend to enforce it? Let's hope that the introduction of Verizon's FiOS and AT&T's U-Verse into the cable/telco TV market help to stimulate greater competition and cause the forces of capitalism come into play. That should get some more choices for set-top boxes, content, and more!