http://www.fiercetelecom.com/story/verizon-battles-cable-10-15-mbps-dsl-speed-tiers/2010-08-31
Verizon battles cable with 10, 15 Mbps DSL speed tiers
Verizon (NYSE: VZ) continues to be set on saving its DSL face and its latest 10-15/1 Mbps service for consumers and business users is a testament to that commitment.
Initially offered to over four million homes and SMBs, the 10 to 15 Mbps speed tier is the latest installment in its DSL speed suite, which currently includes 4-7 Mbps, 1.5 Mbps to 3 Mbps and 768 Kbps to 1 Mbps downstream in addition to a number of similar business service packages.
Given the obvious distance limitations of delivering the new ADSL2+-based service speeds, Verizon spokesperson Kevin Laverty said in a Broadband DSL Reports article that users have to reside 7,000 feet from the closest Central Office (CO).
"The distance to get these speeds maxes out at about 7,000 feet," Verizon spokesperson Kevin Laverty said, adding that the telco plans to expand the availability of the service over the next few months. "We've invested tens of millions to upgrade central offices where ADSL 2 is currently available and expect to add more in the months ahead."
But of course there's the obvious price catch. Like its other DSL offerings, including its new low-speed tier to attract dial up users, potential subscribers are put into two price buckets. Existing Verizon voice customers can get the 10-15 Mbps/1 Mbps service for $49.99 a month, while new customers have to pay the higher $59.99 price. Similarly, SMBs can purchase the ‘naked' standalone DSL service for $89.99 with a two-year agreement and $99.99 without a contract.
While Verizon's Q2 DSL losses could be chalked up as seasonal, it's clear that its latest DSL moves are another way to defend itself from cable operators such as Cablevision (NYSE: CVC) and Comcast (Nasdaq: CMCSA) who continue to upgrade their networks to DOCSIS 3.0 with 50 Mbps speeds and above in markets where Verizon does not offer fiber-based FiOS service.
