verizon+fios quantumVerizon is out with a new promotion this week that allows existing FiOS Internet customers to upgrade to the entry level Quantum FiOS tier of 50/25 Mbps for an additional $10/month. Verizon is using the promotion to leverage trends in the market by offering a simple upgrade path that generates more margin for them in the process.

According to Verizon spokesman Bill Kula, “… customers on our lesser FiOS speed tier offerings will receive significant savings per month. On average, customers could in effect save between $10-$20 per month by increasing their speed through this new initiative so they are receiving considerably higher value.” Other customers who were already closer to the 50 Mbps tier won’t save much, if any, but by my estimation, cost savings is not the main point here. Simplicity and impulse buying are.

Verizon is seizing on the growing appeal of connected devices (tablets, smartphones, game systems, TVs, etc.) in the home and their hunger for bandwidth. Consumers on lower bandwidth tiers are becoming more attuned to the need for more bandwidth. By introducing the $10 Quantum promotion, Verizon is tapping into this new awareness, and making it very easy for a customer to make an impulse buy.

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Ten dollars is a reasonable fee to most and won’t break the bank – at least that’s what Verizon is hoping the targeted market thinks. Verizon has also created very easy virtual points of sale to close this transaction. They’ve developed a microsite —  www.verizon.com/fiosquantum50 — where existing FiOS Internet customers can upgrade with just two clicks.

FiOS Internet customers who subscribe to FiOS TV can also tune into channel 500, and with two clicks from their remote control, upgrade to the new service. Kula tells Telecompetitor that the FiOS TV method is seeing early success. “I can’t release raw stats, but as of this moment, 60% of our speed upgrades are taking place via the new ch. 500 ordering tool that was created to help streamline ordering,” he says. Customers can also upgrade using their MyFiOS app on iOS or Android devices.

http://www.youtube.com/watch?v=jdP0k8n8CCs

“We’re offering real-time service that allows for customers to enjoy their faster Internet service within an hour of placing an order without any change in equipment.  On a customer’s monthly bill, they will see one line clearly showing the $10 additional charge,”  Kula reports on the Verizon News section of their website.

Verizon is making it very simple for their customers to positively impact Verizon’s FiOS ARPU. After all, we all know the best margin for service providers these days is in broadband. Why not make it super easy to improve those margins?

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6 thoughts on “With New 50 Mbps $10 FiOS Upgrade Promotion, Verizon Pushes Simplicity (and ARPU)

  1. So with 2 simple clicks of the OK button one can purchase the quantum upgrade. (1) to select the channel, (2) to agree to purchase the service.

    At least VOD is a bit more complex. I had very little concern of children accidentally "purchasing" a movie. The repetitive press of the 'OK' button is too easy. Also in the midst of channels they watch.

    How does Verizon verify that such a purchase was made by the authorized account holder?

    How can I prevent unauthorized purchases?

  2. It is important to note, these speeds will only be achieved over an Ethernet connection to the Verizon supplied router. But many, if not most, end users will connect wirelessly over their Wi-Fi connection. It is also important to note, if your current router is not upgraded by Verizon, you will not be able to achieve maximum Wi-Fi speeds on your wireless connection.

    1. Dave Lowe is 100% correct about taking advantage of higher speeds. Consumers must understand that connection via WIFI using MI424 WR REV E and lower models will only provide max speeds of 18 Mbps – 20 Mbps. Also note 802.11 b/g devices will not support higher speeds than 24 Mbps via WIFI. Must have 802.11 N ( apple airport extreme) devices to support higher speeds wireless or the new and improve 802.11 ac devices. It will be worthless for consumers to pay upgrade fee if the proper equipment is not provided by Verizon and consumers do not have 802.11 N devices if using connection wireless. If connection is hard wired (Ethernet) then faster speeds will be achieved if correct modem is used.

      1. I would only clarify that is not Verizon who has to provide this wifii connectivity in the home. End consumers can certainly provision a wifi network in their home and turn off the wireless functionality of the Verizon provided modem/gateway.

        1. Are you implying that I may purchase a high end router of my own choosing and then route the FIOS signal through it bypassing the Verizon router (by disabling it) ?

          1. From what I understand, you can do that. However, Verizon will tell you that their router is the one best suited to handle the demands of FiOS, but it's up to the customer.

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