Qwest announced the launch of a VDSL2 powered DSL service, promising 40 Mbps down/20 Mbps up speeds. Qwest has started to roll out these services on a limited basis in certain locations within its fiber-optic-fast Internet footprint, including Denver, Tucson, Salt Lake City, and Minneapolis/St. Paul. In the coming months, Qwest plans to introduce these services to select areas within 23 markets, including markets in New Mexico, Oregon, Utah and Washington.
Pricing for the new packages include:
- Connection speeds of 40 Mbps downstream with 5 Mbps upstream, starting at $99.99 a month for the first 12 months when combined with a qualifying home phone package.
- Connection speeds of 40 Mbps downstream with 20 Mbps upstream, starting at $109.99 a month for the first 12 months when combined with a qualifying home phone package.
- An introductory rate of $5 more a month for qualified customers with 7 Mbps, 12 Mbps or 20 Mbps speed tiers who upgrade to 5 Mbps upstream speeds.
Qwest is facing increasing DOCSIS 3.0 packages from cable competitors in multiple markets. There lack of a FTTH product basically compels them to go this route. Unfortunately for them (and their subscribers), the distance limitations of VDSL2 will make this offering somewhat limited.
Qwest may have a difficult time cracking into these markets. Their pricing at lower speeds has been too high for too long; the customer base is thin. The customers who would have used it have already gone to the competing cable systems.