Subscribers to Verizon‘s (NYSE:VZ) FiOS TV and Internet service will soon have the option of higher Internet speeds. 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) 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), Comcast and Time Warner Cable (NYSE:TWC).
Verizon shares were down fractionally in midday trading on Tuesday.