Verizon (NYSE: VZ) has finally revealed the pricing for its new Quantum Fiber to the Premises (FTTP) speed tiers, including its 300 Mbps/65 tier, which directly challenges cable operator's 50 and 100 Mbps DOCSIS tiers.
Targeting customers who are served over its GPON-enabled network, the service provider is bumping up speeds on three of its current levels: 25/25 will increase to 50/25; 35/35 will climb to 75/35, and 50/20 will jump to 150/65. A new speed tier, 300/65, doubles the current 150/35 top tier. In addition, it will maintain its introductory 15/5 Mbps speed tier.
The pricing structure for the new FiOS speeds will be offered in triple- and double-play bundle packages as well as on a standalone basis:
50/25 Mbps speed tier: New customers that sign up for the triple-play bundles of the 50/25 Mbps speed range will pay from $109.99 to $149.99 per month, while customers that purchase a double-play bundle with FiOS TV will pay $94.99 to $134.99 per month. Finally, the stand-alone version costs $79.99 per month on a month-to-month basis, and $74.99 with a two-year contract.
75/35 Mbps speed tier: New customers will pay $114.99 to $154.99 per month, while double-play bundles with FiOS TV range from $99.99 to $139.99 per month. Customers who opt for the standalone 75 Mbps tier will pay $89.99 per month on a month-to-month basis, and $84.99 a month with a two-year contract.
150/65 Mbps speed tier: The triple-play package will cost between $169.99 to $174.99 per month for new FiOS customers, while double-play bundles with FiOS TV range from $154.99 to $159.99 per month and the stand-alone bandwidth offering costs $99.99 per month on a month-to-month basis, and $94.99 with a two-year contract. On a standalone basis, the service will cost $99.99 per month on a month-to-month basis, and $94.99 with a two-year contract.
300/65 Mbps speed tier: Offered on a stand-alone basis only, customers will pay $209.99 per month on a month-to-month basis, and $204.99 with a two-year contract.
In the markets where these new speed tiers are available, the speeds will provide instant differentiation to area cable operators that can currently deliver 105/20 Mbps speed tier to their respective customer base.
Of course, the concern is what will the new service cost for existing customers? Under the new bundle offering regime, Verizon said these customers should "expect to pay $10 to $15 more per month" to double or triple their speed or adjust their FiOS TV tiers.
The new speed-tiers and bundles are all about providing freedom for the consumer.
Prior to the new promotion, Verizon offered consumers its video, broadband and phone service in what it called "good, better and best" designations, meaning that if someone just wanted a higher bandwidth tier they'd have to pay for a more expensive TV package. This meant if a customer wanted its 35 symmetrical service, a triple play customer would have to buy a $129.99 package, while a double-play customer would have to pay $109.99.
New customers, meanwhile will play about $99.99 to $149.99 per month, depending on the TV package they sign up for the introductory 15/5 Mbps FiOS package. Verizon will offer three primary video packages: Prime (200 channels and over 50 HD channels); Extreme (290 channels and more than 70 HD channels; and Ultimate (includes 380 channels plus premium movie channels, and more than 110 HD channels).
"We'll increase the bundle prices, but in some cases the consumer can save money because they can say they want 150 Mbps and want to do over the top and have a high definition TV; we won't force them into that content," Mike Ritter, chief marketing officer for Verizon's consumer and mass market business unit, told FierceTelecom in an earlier interview. "We'll let them pay for the broadband price of that content."
Ritter added that about 20 percent of the sales it takes from its web site are from customers that have built their own bundles.
"To get that double increase in speed it will be a pretty reasonable increase for you to do that," he said
- see the Verizon release
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