It has not taken Verizon long to join cable's infamous 10 percent-plus club (average price increase over the last 10 years) with the FiOS premier service set to jump 12 percent to $47.99 from January for new users. Also going up are charges for existing customers who signed up before this year, with Verizon announcing a 7.6 percent increase from $39.95 to $42.99.
The increases suggest Verizon is confident it can win market share without having to deep discount. Verizon boss Denny Strigl has observed it is the attraction of super fast broadband which is what is driving up take of FiOS rather than the allure of more TV--which any consumer can get through their cable or satellite provider. So it was no accident Verizon also announced speed hikes for its fiber optic subscribers with symmetrical speed tiers for FiOS broadband access to now include a higher 20 Mbps ceiling for uploads speeds and 50 Mbps for downstream in several markets. Verizon now offers the symmetrical service in 16 states, having originally launched it in three. This gives Verizon clear bragging rights as the fastest in the USA for those consumers who can actually get the fiber service. For the rest (vast majority) it continues to be snail pace connectivity and in prime time barely better than dial up speeds as the cable groans from gaming, surfing, digital voice and multiple television channels.
More Reports:
- Verizon's press release on the speed increase