Verizon announced a new DSL pricing promotion that offers “lifetime” pricing for their 768K and 3 Mbps DSL tiers. If subscribers agree to a two year contract at $14.99/month (768K) or $27.99/month (3 Mbps), they are guaranteed that price level for life, provided they maintain a Verizon voice line. This new pricing promotion takes direct aim at cable modem’s higher price structure and cable’s perceived reputation for raising rates. The reality of the promotion is more fanfare than true value.
While the pricing seems somewhat attractive initially, the idea that subscribers will remain with these tiers for life is unlikely. Lower broadband speeds of 768K and 3 Mbps are not sufficient to keep up with consumers growing broadband appetite. Some would compare 768K DSL as the new “dial-up,” and 3 Mbps, while proving adequate for most people today, is no “lifetime” broadband solution. In fact, it’s probably safe to assume that many subscribers to this promotion will seek higher speed tiers before the two year commitment expires, thus unable to gain their lifetime pricing benefit.