One of the main advertising points telecom companies rely on are fast Internet download speeds. The idea is if a customer likes the speed at which they can download movies, games, and other media to computers, televisions, and smartphones, they won’t stray – especially if the monthly price is right. Verizon (VZ) debuted its FiOS high speed Internet service back in 2004. Catering mostly to those living in the northern and eastern parts of the US, FiOS can be found in some smaller areas in the south, mid-west, and western regions.
Recently, the company stated it has no plans to expand FiOS services to more territories for now, but did announce the launch of advanced Internet download speeds (up to 300 Mbps) for customers willing to spend more each month. A new payment structure will be announced within the next few weeks.
So, what does this mean for existing FiOS customers? Currently, Internet download speeds for top paying customers are 150 Mbps for around $200 per month. Additional plans include slower download speeds, 75 Mbps (which the company plans to discontinue and instead offer 25 Mbps and 35 Mbps), and 15 Mbps. Interestingly, the majority of FiOS customers often request the 15 Mbps plan.
Marketing Disaster or Potential Money Maker?
Even though Verizon doesn’t have any plans to expand FiOS to new territories, the company is hopeful that faster Internet speeds will attract more high paying customers. But with only a small percentage paying for higher speeds now, the question is how many people will sign up to pay even more each month? To continue reading, click here.