Verizon Doubles DSL Speeds to 15 Mbps: Too Little, Too Late for Copper?

Event Summary

August 30, 2010 – Verizon has added a faster High Speed Internet tier to its DSL portfolio with the introduction of a 10 to 15 Mbps downstream and 1 Mbps upstream service initially available to more than four million households and small businesses. The new tier adds to Verizon's existing suite of High Speed Internet DSL speeds: 4 to 7 Mbps, 1.5 to 3 Mbps, and 768 kbps to 1 Mbps downstream for consumers, as well as similar business packages.

Quick Take

Analytical Summary

• Current Perspective: Positive on Verizon’s move to add a DSL tier that is twice as fast as its previous speeds, because at 10 Mbps to 15 Mbps downstream, the latest addition brings Verizon in range of cable competitors which already have the speeds Verizon just added.

• Vendor Importance: High to Verizon, because it has suffered DSL losses to the competition for the last year, largely based on having inferior broadband speeds when compared to what cable offers. Even though FiOS is faster (especially on the uplink) than most cable broadband connections, FiOS is not universally available across the Verizon footprint, so Verizon needed a faster alternative for customers choosing between Verizon DSL or a cable company’s broadband service.

• Market Impact: Moderate on the digital home services market, because the new Verizon tier is still slow compared to the fastest speeds from competitors. FiOS is faster and cheaper by comparison, so FiOS HSI remains the greater threat to the competition.

CLIENTS ONLY

Competitive Positives and Concerns

Response & Recommendations

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