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Verizon details FTTP plans

By Jim Duffy , Network World , 07/26/2004

Verizon last week disclosed details about the fiber-based broadband services it plans to turn up later this summer in Texas.

Data speeds on the fiber-to-the-premises (FTTP) services will reach up to 30M bit/sec, Verizon says, and prices will start at $35 per month. Comparatively, business DSL and cable modem services max out at about 4M bit/sec and cost about $30 per month when bundled with voice, wireless and video services.

Verizon announced in May that the FTTP buildout would launch in Keller, Texas.

The new suite of fiber-optic services will be called Verizon Fios. Each Fios service is available as part of a bundle of local and long-distance calling services from Verizon or as a stand-alone Internet access service.

The Fios Internet access services are:

• 5M bit/sec downstream/2M bit/sec upstream for $35 per month as part of a calling package, or $40 stand-alone.

• 15M bit/sec/2M bit/sec for $45 per month as part of a calling package, or $50 stand-alone.

• 30M bit/sec/5M bit/sec at pricing to be announced later.

Verizon also plans a Fios video offering as an alternative to cable TV in 2005.

Analysts say Verizon's FTTP rates are attractive.

"We believe these services up the ante in the market for residential high-speed connectivity" in the U.S, says UBS Warburg analyst John Hodulik in a bulletin on the service detail. "We continue to believe the timetable on both sides [Bells and cable companies] will accelerate."

In addition to Keller, Verizon has other FTTP buildouts underway in California and Florida. California and Texas are within rival SBC's region, while Florida is in BellSouth's region. Cable companies Cox Communications, Comcast and Time Warner all have a significant presence in these regions as well.

In California, Verizon plans to provide about 100,000 homes and businesses with FTTP technology in the Huntington Beach area and in other parts of Southern California. In Florida, Verizon plans to provide about 100,000 homes and businesses with FTTP technology in the Tampa area and parts of Hillsborough County.

In Texas, Verizon plans to provide 100,000 homes in the Dallas-Fort Worth area.

Verizon intends to provide fiber to 1 million homes and businesses in parts of nine states by year-end and 3 million homes by the end of 2005.

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