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Verizon FiOS Introduces 940/880Mbps Tier For As Low as $69.99; Existing Subs Can Upgrade April 30

Phillip Dampier April 24, 2017 Broadband Speed, Competition, Consumer News, Verizon 1 Comment

Verizon has announced near-gigabit speeds will soon be available to its FiOS customers in eight markets starting April 30th at prices as low as $69.99 a month.

The new speed tier will cost less than half of Verizon FiOS’ currently advertised 500/500Mbps plan, and less than the 750Mbps plan some customers have been able to buy during the last three months in select cities.

FiOS Gigabit Connection will not actually deliver 1,000/1,000Mbps service, but it will come close with download speeds up to 940Mbps and 880Mbps for uploads.

Current FiOS customers will be able to upgrade their internet speed and see a dramatic bill reduction starting April 30, according to a Verizon representative.

Unfortunately, all Verizon FiOS customers will not be able to take advantage of the upgraded speeds and lower prices immediately. For now, only customers in the following areas qualify:

  • New York (City and immediate suburbs)
  • Portions of Northern New Jersey
  • Philadelphia
  • Richmond and Hampton Roads, Va.
  • Boston
  • Providence, R.I.
  • Washington, D.C.

Pricing will depend on the level of service you have. Equipment rental, taxes and fees are not included. Customers must order online to get this pricing:

  • Standalone (non-promotional/never expires): $69.99/mo
  • Triple-play bundle price: $79.99/mo, rising to $84.99 in year two

Customers in the qualified markets noted above currently subscribed to Verizon’s 750/750Mbps plan ($150/mo) will be transitioned to the new gigabit plan automatically and get a lower bill as well.

As FiOS Gigabit Connection is introduced, Verizon will dramatically cut the number of internet plans it offers customers in areas where gigabit speeds are available. Verizon is expected to drop its 100, 150, 300, 500, and 750Mbps tiers, leaving just two — an entry-level 50/50Mbps plan starting at $39.99 and the gigabit plan for just under $70.

In other cities where gigabit speeds will not be available for now, customers are stuck with lower speeds and higher prices. Verizon does not have a timetable when other cities will receive upgrades at this time.

Republican-Controlled FCC Votes to Deregulate Business Data Services; Huge Win for AT&T, Verizon

WASHINGTON (Reuters) – The U.S. Federal Communications Commission voted on Thursday to effectively deregulate the $45 billion business data services market in a win for companies like AT&T Inc, CenturyLink Inc and Verizon Communications Inc that will likely lead to price hikes for many small businesses.

The 2-1 vote is a blow to companies such as Sprint Corp and others that claim prices for business data are too high and backed a 2016 plan under former President Barack Obama that would have cut prices.

It marked a significant step in FCC Chairman Ajit Pai’s aggressive agenda to roll back many existing telecommunications rules and Obama era regulations.

Small businesses, schools, libraries and others rely on business data services, or special-access lines, to transmit large amounts of data quickly.

The services are used, among other applications, to connect banks to ATM machines or gasoline pump credit card readers. Wireless carriers rely on them to get data from an end user to a node in a major network or the so-called backhaul of mobile traffic.

Thursday’s vote scrapped most regulatory requirements in the business data services market, although some price caps in areas with little competition will be retained.

Democratic FCC Commissioner Mignon Clyburn, who accused her Republican colleagues of siding with “the interests of multibillion-dollar providers,” said the ruling “opens the door to immediate price hikes” to small businesses. The rule deregulates pricing in a majority of counties and more than 90 percent of buildings using the services.

Pai defended the decision, saying regulatory requirements had threatened competition and investment.

Pai plans as early as next week to unveil plans to dismantle the Obama administration’s “net neutrality” rules, even as he favors a free and open internet under a different regulatory scheme.

He declined to discuss his plans, but said he had met this week with executives at Facebook Inc, Oracle Corp, Cisco Systems Inc and Intel Corp to discuss internet issues.

In recent days, the independent Small Business Administration Office of Advocacy, the European Union and Democratic members of Congress have raised concerns about the lifting of net neutrality rules.

Under Obama, then FCC Chairman Tom Wheeler in April 2016 proposed a sweeping reform plan for business data services that aimed to reduce prices paid. Wheeler had proposed maintaining and lowering lower price caps using legacy data systems with a phased-in 11 percent price reduction.

Sprint, which backed Wheeler’s proposal, told the FCC in a March 22 letter that “thousands of large and small businesses across the country were paying far too much for broadband because of inadequate competition.”

CenturyLink praised Thursday’s decision as something that aligned regulations with “competitive market realities.” Comcast Corp said the vote would help minimize “burdensome and investment-killing regulations, specifically on new entrants.”

Advocacy group Public Knowledge said the decision “doubles down on incumbent market power, forcing businesses, hospitals, schools, and ultimately consumers to pay more for essential connectivity.”

(Reporting by David Shepardson; editing by Andrew Hay and Tom Brown).

Verizon Reports First-Ever Quarterly Loss of Wireless Customers, Despite New Unlimited Data Plan

FILE PHOTO: The logo of Verizon is seen at a retail store in San Diego, California April 21, 2016. REUTERS/Mike Blake/File Photo

(Reuters) – Verizon Communications Inc on Thursday reported its first-ever quarterly loss of subscribers, even as it offered an unlimited data plan, raising questions on whether the No. 1 U.S. wireless carrier may need a larger acquisition than Yahoo to diversify its business.

Verizon has been struggling to fend off smaller rivals T-Mobile US Inc and Sprint Corp in a maturing market for U.S. wireless service, and in February offered an unlimited data plan for the first time in more than five years.

While it has pursued other revenue streams, including a $4.48 billion deal for Yahoo Inc’s core business, analysts have questioned if it should pursue a more transformative combination.

“We continue to believe that the company needs a strategic transaction to support their wireless business for the long-term,” analysts at New Street Research said in a note.

Meanwhile, Verizon’s main competitor AT&T Inc plans to diversify its business through an $85.4 billion acquisition of Time Warner Inc, which would give it control of cable TV channels like HBO and other coveted media assets.

Verizon’s shares were down 1.2 percent at $48.33 in midday trade.

Earlier this week, Verizon Chief Executive Lowell McAdam said in an interview with Bloomberg News that he is open to deal talks with companies ranging from Comcast Corp to Walt Disney Co.

On Thursday, Chief Financial Officer Matthew Ellis clarified the comments, saying that while the company would consider deals that are in the interest of shareholders, it is confident in its assets.

“The ecosystem is constantly changing, and if there’s somebody who comes to us with an idea of how we can kind of leapfrog forward in that environment, we’re going to listen to them,” Ellis said in an interview with Reuters. But he added, “We are very confident with the strategy that we have.”

In the first quarter, Verizon said it lost 307,000 retail postpaid subscribers or those who pay a monthly bill. Analysts on average were expecting net additions of 222,000, according to market research firm FactSet StreetAccount.

Churn, or customer defections, among wireless retail customers who pay bills on a monthly basis, increased to 1.15 percent of total wireless subscribers, compared with the average analyst estimate of 1.03 percent, according to FactSet.

Ellis noted that churn rose in the first half of the quarter but came down in response to the relaunch of unlimited plans. “It really was a tale of two halves,” he said.

But analysts viewed the results as disappointing.

“They badly missed on every important subscriber metric, and it just underscores that the wireless business is a severely growth-challenged business at the moment,” said Craig Moffett, an analyst at MoffettNathanson in an interview.Net income attributable to Verizon fell to $3.45 billion, or 84 cents per share, in the first quarter ended March 31, from $4.31 billion, or $1.06 per share, a year earlier. Excluding items, earnings per share was 95 cents.

Total operating revenue fell to $29.81 billion from $32.17 billion a year earlier.

According to Thomson Reuters I/B/E/S, analysts had expected adjusted earnings per share of 99 cents and revenue of $30.77 billion.

(Reporting by Anjali Athavaley in New York; Editing by Saumyadeb Chakrabarty, Bernard Orr).

Verizon Commits to Spend $1 Billion on New Fiber Buildout for Its 5G Network

Verizon Communications announced a deal Tuesday with a leading optical fiber manufacturer to supply up to 12.4 million miles of fiber cable annually for a large buildout of Verizon’s fiber network to power its forthcoming 5G wireless service.

Verizon’s $1.05 billion agreement with Corning, Inc., of Corning N.Y., will guarantee Verizon will have an ample supply of optical fiber available from 2018-2020 at a time when the company noticed a fiber cable shortage was causing problems for its current FiOS/5G fiber buildout now underway in Boston.

“This new architecture is designed to improve Verizon’s 4G LTE coverage, speed the deployment of 5G, and deliver high-speed broadband to homes and businesses of all sizes,” Verizon said in a statement. But Verizon did not make it very clear the expansion will primarily benefit Verizon Wireless, not Verizon Communications’ FiOS fiber to the home service.

Verizon CEO Lowell McAdam, appearing exclusively on CNBC this morning, rejected the notion that the fiber buildout would represent a restart of Verizon’s long-suspended expansion of its FiOS fiber to the home service.

“When we deployed FiOS we would run a fiber cable into a neighborhood with six or eight strands in it,” McAdam said. “Now we’re going to drop off six or eight strands to every street light in every neighborhood so that allows you to deliver a gigabit of thruput into the home and allows you to do things like intelligent transportation, electric grid management, and water system management. You hear a lot about autonomous cars and things like that today that don’t work without 5G.”

Verizon’s Boston project represents the current CEO’s vision: a wireless-based network supported by an extensive fiber network. But instead of connecting fiber to homes, McAdam’s network connects fiber to tens of thousands of palm-sized “small cells” and other wireless infrastructure that will deliver services to individual neighborhoods instead of individual homes.

Critics still question whether Verizon’s 5G network will be able to sustain its speed and capacity claims outside of testing labs, especially as shared wireless network infrastructure faces future usage demands. Fiber to the home service does not require customers to share bandwidth the same way a wireless connection would and can manage much higher capacity.

Verizon CEO Lowell McAdam and Corning chairman and CEO Wendel Weeks appeared jointly on CNBC to discuss Verizon’s $1.05 billion agreement with Corning to guarantee up to 12.4 million miles of optical fiber a year from 2018-2020. (11:24)

Spectrum Auction: T-Mobile Runaway Winner, But Dish Buy Puzzles Investors

T-Mobile’s 600MHz coverage map — assuming it builds out its full spectrum purchase.

One of the most consequential and visible spectrum auctions ever is over, and it will have a significant impact on broadcasters, wireless carriers, and the future competitive landscape of the wireless industry.

The world’s first “incentive auction” paid television stations to voluntarily vacate or move their assigned channels to make room for the wireless industry’s desire for more spectrum to power wireless data services. Up for bid was 70MHz of spectrum currently used by UHF television stations. A total of 50 winning wireless bidders collectively agreed to pay $19.8 billion to acquire that space. The biggest winner was T-Mobile USA, which is paying almost half the amount of total proceeds to acquire 45% of the spectrum available in the current auction. T-Mobile managed to acquire enough spectrum to cover 100% of the United States and Puerto Rico with an average of 31MHz of available spectrum nationwide, quadrupling its current inventory of important “low-band” spectrum, which is excellent for covering rural areas and inside buildings.

Consumers are likely to benefit as early as later this year when T-Mobile begins lighting up cellular service utilizing the newly available spectrum. Unfortunately, customers will have to buy new devices compatible with the new bands of frequencies.

Having the spectrum alone is not enough to beef up T-Mobile’s network. The company will have to invest in a large number of new cell sites, particularly in outlying areas, to eventually rival the coverage of AT&T and Verizon Wireless. But with an ample supply of 600MHz spectrum, T-Mobile could soon challenge AT&T and Verizon Wireless’ perceived network and coverage superiority. After this auction, AT&T continues to hold the largest portfolio of <1GHz spectrum — 70.5MHz. Verizon is second with 46.2MHz and T-Mobile has moved up in its third place position with 41.1MHz.

Although the FCC claims the current auction was among the highest grossing ever conducted by the FCC, industry observers claim companies got the new frequencies at a bargain price. A 2015 spectrum auction attracted $44.9 billion in bids, more than double the amount bid this year. The average price wireless companies paid per megahertz per person this year was just shy of 90¢, compared with $2.72 in 2015.

Where bargains are to be had, Charles Ergen and his Dish Network satellite company are sure to follow.

Few companies have as much unused wireless spectrum in their portfolio as Dish. Ergen loves to bid in auctions and has also picked up excess spectrum available on the cheap from other satellite companies that have since gone dark or bankrupt. Dish spent $6.2 billion on spectrum during the latest auction, puzzling investors who drove Dish’s share price down wondering what the company intends to do with the frequencies.

Investors were hoping Dish would eventually sell its spectrum portfolio at a profit, something that could still happen if other wireless carriers see a deal to be made. But some Wall Street analysts fear Dish might actually build a large wireless network of its own to offer wireless broadband service. Wall Street dislikes big spending projects and the competition it could bring to the marketplace, potentially driving down prices.

The other possibility is that Dish is making itself look more attractive to a possible buyer like Verizon, which could acquire the satellite company to win cheaper cable programming prices for its FiOS TV and an attractive amount of wireless spectrum for Verizon Wireless. The nation’s biggest wireless carrier notably did not participate in this spectrum auction.

Another unusual bidder was Comcast. Craig Moffett from Wall Street firm MoffettNathanson called Comcast’s $1.7 billion bid “half-hearted” and said it was unlikely to be enough spectrum for the company to begin offering its own wireless service. Comcast plans to rely on Verizon Wireless to power its wireless service, at least initially.

Comcast targeted its bids only in cities where it already provides cable service, which also nixes the theory Comcast and Charter might have been working together to form a cellular joint venture. Moffett expected Comcast would seek at least 20MHz of spectrum across most of the country. It ended up with 10MHz and only in select cities. Moffett thinks that may signal Comcast’s interest in buying an existing wireless carrier is still on the table.

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