Verizon flexed its promotional muscle, dropping the cost of its entry-level Fios and fixed wireless Home Internet plans to $25 per month and offering a four year price lock for fiber customers on its faster 1-gig and 2-gig tiers. But the former deal comes with a catch.
“It needs the premium unlimited wireless [plan] and that is the kicker,” Recon Analytics founder Roger Entner told Fierce. Still, he said, it’s “a good offer.”
Verizon’s $25 per month pricing applies to its 300 Mbps Fios, basic 5G Home and LTE Home services but is available only to customers with its 5G Play More, 5G Do More and 5G Get More mobile plans. The advertised $25 pricing also includes an Auto Pay discount and a two-year price guarantee.
Without the mobile bundle and Auto Pay discounts, the entry-level Fios and fixed wireless service tiers each cost $50 per month.
For Fios users, Verizon is also offering $25 per month discounts on its 500 Mbps and 1-gig plans for those who bundle in the aforementioned mobile plans and enroll in Auto Pay, dropping the price of the former from $69.99 to $44.99 and the latter from $89.99 to $64.99 per month. The 500 Mbps plan comes with a three-year price lock. Its 1-gig plan includes up to 1 year of Disney+, cloud storage and $100 in gaming credits as well as a four-year price guarantee.
New Street Research pointed out in a research note that the $50 and $69.99 pricing for Verizon's standalone 300 Mbps and 500 Mbps plans actually represents an increase from previous price points of $40 and $65, respectively. However, the firm noted the operator is now including a free router rental with those plans.
In its press release, Verizon indicated it is looking to steal subscribers from cable competitors with the promotion, explicitly calling on customers to “ditch cable and switch” to one of its Home Internet services.
The promotion comes as Verizon faces a fiber overbuild of its Fios footprint from cable operator Altice USA and increased competition from a range of other fiber players. For instance, Ting Internet recently scored a deal to build fiber to 90,000 locations in Alexandria, Virginia, in a rollout which will pit it against both Verizon Fios and Comcast.
According to Entner, Verizon’s move is also designed to boost net add figures in a challenging quarter for the operator. “This quarter is not a great quarter from what I can tell,” he said. “They’re looking for any adds. If you can pay, they want you.”
He added that the price guarantees Verizon is offering are also strategic given recent moves by Verizon, AT&T and others to raise rates. “We’ve seen in our numbers that the more carriers talk about price increases, the more skittish customers get. And so, you put people at ease,” Entner concluded.
This story has been updated with comments from New Street Research.