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Verizon to offer slower DSL to gain broadband users
Monday 22 August 2005, 2:34pm EST
By Justin Hyde
WASHINGTON, Aug 22 (Reuters) - Verizon Communications Inc. (VZ.N: Quote, Profile, Research) will offer a slower-speed broadband Internet service aimed at converting dial-up Internet subscribers to compete more aggressively against cable companies for broadband users, a source familiar with the plan said on Monday.
The move by Verizon, the largest U.S. telephone company, follows weaker-than-expected sales of high-speed Internet services by Verizon and other local telephone companies in the second quarter.
Verizon will offer users a digital subscriber line with data speeds of 768 kilobits for downloads and 128 kilobits for uploads for $14.95 per month, and will require a one year contract. Verizon's regular DSL service offers download speeds of up to 3 megabits per second for $29.95 per month.
The deal prices Verizon's DSL below regular dial-up Internet access from Time Warner Inc.'s (TWX.N: Quote, Profile, Research) America Online and Earthlink Inc. (ELNK.O: Quote, Profile, Research). Verizon is due to announce the new service on Tuesday along with an expanded partnership with Yahoo Inc. (YHOO.O: Quote, Profile, Research), said the source, who requested anonymity.
Telephone and cable companies see the roughly 40 million U.S. high-speed Internet subscribers as a key to their future growth. But telephone companies have been forced to lower prices for their broadband services to offset the higher speeds that cable companies can offer.
During the second quarter, telephone companies captured about 52 percent of new U.S. broadband subscribers, according to Leichtman Research. Analysts had expected telephone companies to take up to 55 percent of new subscribers
Verizon to offer slower DSL to gain broadband users
Monday 22 August 2005, 2:34pm EST
By Justin Hyde
WASHINGTON, Aug 22 (Reuters) - Verizon Communications Inc. (VZ.N: Quote, Profile, Research) will offer a slower-speed broadband Internet service aimed at converting dial-up Internet subscribers to compete more aggressively against cable companies for broadband users, a source familiar with the plan said on Monday.
The move by Verizon, the largest U.S. telephone company, follows weaker-than-expected sales of high-speed Internet services by Verizon and other local telephone companies in the second quarter.
Verizon will offer users a digital subscriber line with data speeds of 768 kilobits for downloads and 128 kilobits for uploads for $14.95 per month, and will require a one year contract. Verizon's regular DSL service offers download speeds of up to 3 megabits per second for $29.95 per month.
The deal prices Verizon's DSL below regular dial-up Internet access from Time Warner Inc.'s (TWX.N: Quote, Profile, Research) America Online and Earthlink Inc. (ELNK.O: Quote, Profile, Research). Verizon is due to announce the new service on Tuesday along with an expanded partnership with Yahoo Inc. (YHOO.O: Quote, Profile, Research), said the source, who requested anonymity.
Telephone and cable companies see the roughly 40 million U.S. high-speed Internet subscribers as a key to their future growth. But telephone companies have been forced to lower prices for their broadband services to offset the higher speeds that cable companies can offer.
During the second quarter, telephone companies captured about 52 percent of new U.S. broadband subscribers, according to Leichtman Research. Analysts had expected telephone companies to take up to 55 percent of new subscribers
