Bloomberg News

Verizon Lifts FiOS Speed to 500 Megabits in Race With Comcast

July 23, 2013

Verizon Communications Inc. (VZ:US), the second-largest U.S. telephone company, is boosting its FiOS Internet speeds to 500 megabits a second, faster than Comcast Corp. (CMCSA:US)’s speediest service and half that of Google Inc.’s.

Verizon aims to attract consumers and small businesses to its FiOS Quantum fiber-optic services, became available yesterday in parts of every FiOS market. Customers that combine Internet with TV or telephone service will pay $309.99 a month, or $329.99 for a package of all three services.

The phone company, based in New York, is promoting speed as a competitive advantage for people willing to pay top dollar. Comcast, the largest broadband provider, exceeded Verizon last year with a service promising 305 megabits-a-second speed for $299.95. Last quarter, Verizon added 161,000 FiOS Internet customers for a total of 5.8 million.

The new service is for people in offices who share connections and for families who do a lot of movie downloads, said Fowler Abercrombie, a manager of the FiOS development team in Irving, Texas.

Google (GOOG:US) debuted a 1-gigabit Internet service called Google Fiber in the Kansas City, Missouri, area last year starting at $70 a month. Earlier this year Google announced Austin, Texas, and Provo, Utah, as the next two communities to get the high-speed service. Verizon doesn’t provide service in those cities.

“We can support up to 10-gigabit on our network,” said Abercrombie. “We’re watching the market to see where it goes next.”

To contact the reporter on this story: Scott Moritz in New York at smoritz6@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net


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Companies Mentioned

  • VZ
    (Verizon Communications Inc)
    • $50.35 USD
    • 0.66
    • 1.31%
  • CMCSA
    (Comcast Corp)
    • $56.74 USD
    • -0.11
    • -0.19%
Market data is delayed at least 15 minutes.
 
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