Verizon Boosts FiOS Internet Speeds, Prices

by Christopher Freeburn | June 19, 2012 12:26 pm

Verizon Boosts FiOS Internet Speeds, Prices

Subscribers to Verizon‘s (NYSE:VZ[1]) FiOS TV and Internet service will soon have the option of higher Internet speeds[2]. But the speedier downloads will cost more.

The company is preparing to roll out service plans for 50 megabits-per-second (mbps) and 75 mbps Internet connections, replacing its existing 25 mbps and 35 mbps plans, Reuters notes. The new plans will cost $10 to $15 more a month for the higher speeds.

A basic 15 mbps plan will remain available. However, with more consumers spreading Internet connectivity across multiple devices, Verizon believes 80% of its subscribers will opt for the higher-speed packages. It’s also slashing the price of its high-speed 150 mbps service to $99.99.

For those who think 150 mbps is just too slow, Verizon will introduce a 300 mbps service, priced at $209.99 a month, slightly higher than Comcast‘s (NASDAQ:CMCSA[3]) 105 mbps service, which costs $200 a month. At that 300 mbps, users could download a high-definition, two-hour movie in just over 2 minutes.

Analysts cited by Reuters said Verizon’s price increase was unusual, given its competitors’ recent price freezes.

The move could signal a wave of price increases from other Internet service provides, including rivals like Cablevision (NYSE:CVC[4]), Comcast and Time Warner Cable (NYSE:TWC[5]).

Verizon shares were down fractionally in midday trading on Tuesday.

Endnotes:
  1. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  2. will soon have the option of higher Internet speeds: http://www.chicagotribune.com/business/breaking/chi-verizon-boosting-prices-for-some-highspeed-internet-users-20120618,0,765632.story
  3. CMCSA: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMCSA
  4. CVC: http://studio-5.financialcontent.com/investplace/quote?Symbol=CVC
  5. TWC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TWC

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