Assuming you get 1000 hours per CD, you're saying CDs cost about $1.65.
You could probably get CDs in bulk for an order of magnitude or two cheaper. Assuming the CDs are $0.01, that's 440 trillion free hours. Great deal for Verizon.
On the other hand, with dial up at ~50kb/s, and the top-end Verizon FiOS running at 150Mb/s, that 440 trillion free hours of dialup is only 146 billion hours of FiOS, or $33/hour of FiOS 150Mb/s, or, put in the way that the market usually charges for bandwidth, approx $24,000/month for 150Mb/s bandwidth. That is way more than the going rate for that sort of bandwidth.
You could probably get CDs in bulk for an order of magnitude or two cheaper. Assuming the CDs are $0.01, that's 440 trillion free hours. Great deal for Verizon.