Verizon Boosts FiOS Web
Speeds
By ROGER CHENG
June 19, 2008; Page B8
Verizon Communications
Inc. said it plans to expand the availability of its super-fast FiOS
Internet service, further pressuring the cable providers in the speed
game.
The New York
telecommunications company next week will begin offering FiOS Internet
service, which offers download speeds up to 50 megabits per second, to
10 million homes and small businesses throughout its 16-state territory,
widening it beyond its availability in six states. While still just a
fraction of Verizon's total customer base, the expansion represents a
leap ahead of the geographic reach of cable providers' super-fast
Internet service.
At 50 Mbps, a person could
download a high-definition movie in 13 minutes, or a 60-minute Web video
in eight seconds.
"The Verizon network is
delivering broadband speeds that are unmatched by any competitor," said
Denny Strigl, president and chief operating officer of Verizon, in
statements prepared for his keynote address at the NXTComm industry
trade show Wednesday.
Comcast Corp. said
in April it would begin offering a similarly fast Internet connection in
Minnesota's Twin Cities region, with plans to expand to its entire
service region by 2010. But cable has been slow to push speeds at that
rate.
Verizon's FiOS, which
directly connects many of its subscribers to the faster fiber-optic
network, is the company's $18 billion bet. In addition to the faster
service, FiOS allows for the delivery of television, which Verizon hopes
will allow it to protect its customer base, and nab some subscribers
from its cable rivals.
Verizon plans to make FiOS
available in more than 18 million homes by 2010. The 50-Mbps service
will cost customers $139.95 a month with an annual contract. Verizon
plans to increase the basic and middle-tier connection speeds as well.
FiOS does a lot to erase
the notion that cable Internet service is faster, a view that cable
companies have been happy to exploit. Comcast executives last month said
they planned to add to its series of "Slowsky turtles" commercials,
which take shots at the telcos for their slower DSL connections.
Even as FiOS continues to
win subscribers, cable providers have held up well in winning over phone
customers. Outside of FiOS, Verizon's DSL service fared poorly in the
last quarter. Executives said they planned to rededicate resources
toward pushing DSL.
Write to Roger
Cheng at
roger.cheng@dowjones.com1
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