Verizon to Serve Low Fiber In its quest for fiber customers, carrier may charge monthly fees as low as $14.95.
Red Herring Magazine November 28, 2005 http://www.redherring.com/PrintArticle.aspx?a=14637§or=Industries The chatter around Verizon Communications offering a low-end fiber optic service (FiOS) is picking up. Unconfirmed reports have Verizon launching a low-end FiOS service next year that will be priced below $20 per month, with downstream speeds of 1 megabit per second (Mbps). To date, Verizon offers three flavors of FiOS. The current low-end service has a downstream speed of 5 Mbps and an upstream speed of 2 Mbps and sells for $34.95, with voice. The mid-tier service offers downstream speeds of 15 Mbps and upstream speeds of 2Mbps for $44.95 with voice. The high-end service offers 30 Mbps downstream and 5 Mbps upstream for $179.95 with voice. On the Broadband Reports forum, one report states that Verizon plans to charge $14.95 per month for a service that most likely will be 1 Mbp both down- and upstream. Verizon stock price fell $0.12 to $31.86 in recent trading Monday. "Verizon has placed a big bet on fiber and now they have to make that bet happen," said Joe Nordgaard, director of Spectral Advantage, a wireless strategic consulting firm. "They want to start converting customers to fiber for their entertainment package, so frankly a lower-priced fiber package makes sense." Verizon spokesperson Mark Marchand said he was unaware of any low-end fiber service that Verizon planned to announce soon. All-out War Verizon and AT&T, formerly SBC, have been engaged in all-out warfare with cable TV operators in their regions that are currently offering voice services on their networks. Both Verizon and AT&T have invested heavily in fiber networks on which they plan to offer entertainment packages that will include TV. But Verizon has been involved in something approaching hand-to-hand combat with Cablevision, a cable TV operator in the New York area, and the sixth-largest cable operator in the United States. Cablevision has moved aggressively to hold on to its customer base and stymie Verizon's entry into the video market with very aggressively priced services and improved customer service. Three weeks ago Cablevision announced it would offer 30 Mbps connection speeds for as little as $9.95 to its Triple Play customers, or $14.95 per month as a stand-alone service. Cablevision also said it would launch an unprecedented 50 Mbps service by the middle of next year (see Cablevision Ratchets Up Speed). This followed Verizon's announcement in August of a low-end Internet DSL service at $14.95, which was about half of Cablevision's introductory price for its Internet service (see Verizon, Yahoo in DSL Hookup). But just a day after Cablevision's announcement of its 50 Mbps service, Verizon announced its lowest-ever prices for voice services, along with a pricing policy that varies according to the neighborhood and the rival that operates in that area. Verizon competes with cable operators Cablevision, Comcast, and Time Warner Cable, among others. Voice and More Verizon has also announced its Freedom Essentials voice service, which includes unlimited local, regional, and domestic long-distance calling, along with home voice mail, call waiting, and caller ID services, starting at $34.95 a month. The carrier's Freedom Value plan offers any-distance domestic calling, but no calling features, and starts at $29.95 in some markets. The plan is Verizon's lowest ever in the Northeast. The $29.95 price matches Cablevision's oft-advertised introductory price for all three of its Optimum voice, video, and Internet access services (see Verizon's 'Street Fight' Prices). So far Verizon offers its entertainment package in only two cities: Keller, Texas; and Herndon, Virginia. But the second-largest telecommunications carrier in the U.S. is expected to begin launching its service more widely in 2006. The company is also expected to target telecommuters who need high bandwidth for work-at-home connections. "Verizon has to use more than voice to entice people to convert to its fiber connection," said Mr. Nordgaard. "Once you have people fibered, it's easy to move them up the value chain. The trick is to get them connected." ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
