Cablevision revs up its broadband

By Marguerite Reardon
News.com

http://news.com.com/Cablevision+revs+up+its+broadband/2100-1034_3-5937233.html

Story last modified Mon Nov 07 07:54:00 PST 2005



Cablevision has increased speeds of its residential and commercial 
broadband service as the fight between cable operators and phone 
companies intensifies.

Cablevision, which serves parts of the New York City region, 
announced Monday that it will sell new premium broadband services 
with download speeds of 30 megabits per second and 50 mbps to its 
residential customers. The company will also increase download speeds 
on its basic service from 10mbps to 15mbps at no additional charge to 
customers.

Cablevision's new speeds come just at Verizon Communications starts 
rolling out its new Fios, fiber-to-the-home service in parts of 
Cablevision's region. Verizon's Fios network provides enough capacity 
to allow the company to scale its high-speed Internet service up to 
100mbps in addition to providing television and phone service over 
the same pipe, the company said.

Verizon has spent billions of dollars in the past year digging up 
streets to lay the new fiber network in neighborhoods in half of the 
states where it provides local phone service. The base plan for Fios 
offers download speeds of up to 5mbps, with an upload speed of 2mbps 
for $39.95. For $49.95, consumers can get download speeds up to 
15mbps, and for $199.95, users can download at 30mbps and upload at 5mbps.

Cablevision charges $49.95 for its basic Optimum Online broadband 
service, and it offers a $5 discount for customers that subscribe to 
both its high-speed Internet and cable services. New broadband 
customers can get the service for as little as $29.95 per month for a 
limited time.

Cablevision has not disclosed the price of its 50mbps service, which 
also offers 50mbps of upstream capacity. The 30mbps service, which 
offers 2mbps upstream, will cost an extra $14.95 per month, or $9.95 
more for customers who also have a voice over Internet Protocol phone 
line, the company said. Cablevision said the service will be 
available to all of its customers throughout its network by the middle of 2006.

Cablevision isn't the only cable operator that is increasing the 
speeds of its service to compete. In May, Cox Communications boosted 
download speeds in its Northern Virginia territory to 15mbps. It 
began offering a similar service in Rhode Island in June, while 
Adelphia announced that it is raising speeds to 16mbps to residents 
in Leesburg, Va. Both companies also compete with Verizon's new Fios 
fiber service.

Broadband is an important market for cable and phone companies 
because it generates substantial profit. The companies also believe 
that customers, who use multiple services from one provider will 
stick around longer than customers who buy only one service.


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George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011          



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