Verizon Turns Up FiOS Heat

In a move that’s illustrative of the intensity of competition between Verizon and cable, Verizon announced several new promotions for its FiOS brand. “From its inception just five years ago, Verizon FiOS has transformed the American broadband and home-entertainment experience by delivering innovative services that our competitors can’t match,” said Mike Ritter, chief marketing officer for Verizon Telecom in a company statement.

Emphasizing faster ‘two-way’ broadband speeds and interactive services, the new promotions include:

• The company has raised the connection speed of its entry-level FiOS Internet service from 10/2 megabits per second (Mbps) to 15/5 Mbps
• The mid-tier FiOS offering is being raised to 25/15 Mbps, from 20/5 Mbps
• In its New York City market, where Verizon is in a pitched battle with Cablevision and Time Warner Cable, they raised the entry-level connection speed of FiOS to 25/15 Mbps, and the mid-tier offering to 35/20 Mbps, available only in bundles
• New customers who sign up for a triple bundle that consists of FiOS Internet with a connection speed of 25/15 Mbps or higher, FiOS TV Extreme HD service and FiOS Essentials voice service will receive their choice of a free Compaq Mini netbook valued at $299.99 (customer only pays shipping, handling and taxes) or a free Flip Ultra camcorder, valued at $149.99
• New customers who order a triple bundle that consists of FiOS Internet with a connection speed of 15/5 Mbps or higher, FiOS TV Essentials service and Freedom Essentials voice service will receive a free Flip Ultra camcorder, or they can opt to purchase a Compaq Mini netbook for $99.99

Verizon also addressed its DSL customers, extending the free netbook and Flip camcorder promotion to new DSL powered triple play and double play bundles of $99/month and $69.99/month respectively. The promotions run through August 15th.

Verizon is moving to lessen the impact of DOCSIS 3.0 competition to its FiOS and DSL broadband footprints. Rather than matching the 100 Mbps hype machine of DOCSIS 3.0, Verizon is emphasizing faster ‘two-way’ speeds for FiOS. We’ll have to see if that strategy resonates with consumers. By providing Flip camcorders, Verizon is presumably helping their own cause. Customers may be eager to upload all those Flip produced videos to the Internet, making that ‘two-way’ speed more valuable in their own minds.