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Verizon broadband prices makes UK look cheap
Tuesday 19 June 2012 17:29:57 by Andrew Ferguson

Verizon while not a UK provider but a provider in the USA, will be known by many for its rollout of a fibre service called FiOS, which provides packages that ran from 15 Mbps right up to 300 Mbps.

What many people will not have seen is the price of these packages, and the distinct premium price they command on top of the standard DSL offerings by Verizon. Verizon does offer speed banding that many in the UK would like, but the banding is very basic, a below 1 Mbps service is available for $19.99 a month, for those wanting 1.1 Mbps to 15 Mbps the price rises to $29.99 a month. Remember to add sales tax (usually around 10%) and other fees that are payable, in the US advertised pricing excludes things like tax, and contributions to run the 911 phone service.

The cheapest fibre service is a wallet busting $69.99 and this gets you a 15 Mbps download, and 5 Mbps upload. An extra $10 a month boosts speeds to 50 Mbps down, and a very good 25 Mbps upload. 150 Mbps is available for $99.99 a month, and for the money no object crowd there is a 300 Mbps service at $209.99 per month.

The services are all unlimited, though it seems that as average usage is increasing the monthly cost for broadband is set to increase. The UK has generally avoided large price rises for broadband services by a mixture of backhaul costs reducing over the years due to regulation and competition, and the very early introduction of usage allowances and traffic management.

Superfast broadband in the UK generally carries a premium of £10 to £15 a month on top of the standard ADSL2+ packages, though BT Retail is managing to absorb the extra wholesale costs currently, similar to what it did in the early days of the ADSL roll-out in an attempt to drive take-up. Virgin Media who offers the closest match in terms of download speeds to FiOS costs £34.75 per month for its 100 Mbps service.

Comments

Posted by Apilar over 4 years ago
The Verizon products don't have any traffic shaping. Well worth it.
Posted by Dave_m29 over 4 years ago
It'll be interesting to see what the contention is like. If it's a quality product, I'd prefer it to the current mass UK domestic broadband market's "pile it high sell it cheap" approach. I'd personally rather have a lower headline speed with less contention and a guaranteed level of service. It'll be interesting to see how the UK market goes.
Posted by jchamier over 4 years ago
Don't forget that Verizon had to offer Fibre - the DSL distances in the US are generally vastly more than the UK - average DSL speeds of 384kbps get talked about in non-cabled areas.

FiOS sounds great - but its in very limited areas.
Posted by otester over 4 years ago
VM cannot compete, a lot of 100Mbps customer barely reach that, just look at their forums.
Posted by Dixinormous over 4 years ago
What does this have to do with the UK? The UK fits inside a single US state and is in no way comparable. FiOS is FTTP, nearly all of the UK's FTTx is to the node or cabinet.

The other thing is, of course, that if you bundle TV with FiOS broadband you very quickly get to a much better deal.

380 TV channels, of which 110 are HD, 75Mbps down, 35Mbps up, and telephone service for less than £100/month sound more reasonable?

The price of the a la carte broadband is high precisely to deter people from taking it on its own.

Posted by Dixinormous over 4 years ago
Just to mention, also, FiOS performs at 100% for people 100% of the time. Compare that to the congestion people see on their BT Wholesale backhauled products and you begin to put things into perspective.

Apples and oranges, a quality, premium product versus pile high and sell cheap that Ofcom forced the UK market to focus on.

All that said, yes, the US isn't great value for money, however if the service is good perhaps a higher price for a quality product is appropriate?
Posted by throwaway over 4 years ago
Poor article - the population density and the regulation regime means UK should be compared to european countries than USA. The nordics get truly unlimited broadband for 30-40 euros (ie, they don't even shape P2P). BT isn't doing such a marvelous job.
Posted by otester over 4 years ago
@throwaway

You can get truly unlimited for less than €30 here...
Posted by throwaway over 4 years ago
@otester

That's just ballpark range I recall from my nordic friends, all the better showing UK pricing isn't as glamorous.
Posted by andrew (Favicon staff member) over 4 years ago
Sky Broadband unlimited, no shaping £10 per month. The fibre service costs more.
Posted by ian72 over 4 years ago
Didn't the nordic countries have large amounts of government funding injected to create the infrastructure (ie more than we are)? There are so many variables in place that it is difficult to compare any 2 countries (regulation, gov funding, income, etc all make things very different).
Posted by ElBobbo over 4 years ago
Can't give Sky enough credit for value for money. On the other hand, a high quality, no caps, no throttling fully fibre 15/5 service for £44.50? Sign me up. Far better than ADSL/VDSL products. Also, £50 for unlimited 50/25? I don't think that it makes the UK look cheap. It makes UK ISPs look like amateurs.
Posted by FlappySocks over 4 years ago
US Cable companies are very worried right now. IPTV is eating away at their Cable TV business, and if a customer drops their TV package for IPTV services like Netflix (now 20-30% of US internet traffic), the streaming is still done over their cable network. So it's not surprising they want to cash in on data, to cover losses.

YouView, Google TV & the Sky offering are coming to the UK soon. Expect UK customers to become more aware of IPTV in the coming months.
Posted by otester over 4 years ago
Make that just under €40 then.

(Sky Fiber + Line rental).
Posted by themanstan over 4 years ago
Nordic (and Baltic) countries get to piggy back onto government owned infrastructure.

UKgov has no infrastructure to let ISPs piggy back off.
Posted by Dixinormous over 4 years ago
'Posted by FlappySocks 3 days ago ' <<< This. Pricing plans in the USA are to try and mitigate the effect of 'cord cutters' to some extent.
Posted by Dixinormous over 4 years ago
'Posted by jchamier 4 days ago FiOS sounds great - but its in very limited areas.'

FiOS is deployed to over half of all of Verizon's covered areas. 16.5 million homes passed with FiOS, between 8 and 9 million that aren't, and still building.
Posted by Dixinormous over 4 years ago
Oh my mistake, my data was slightly out of date, it's 16.9 million homes passed with FiOS now, over 2/3rds of the entire footprint of the network have access to FTTP.

Making FTTP available to those 16.9 million homes has so far cost Verizon $23 billion. Puts BT's $3.8 billion investment into focus and made a BT guy trying to tell me it was the biggest investment of its kind in the world pretty funny.
Posted by nstrudwick over 4 years ago
As one who lives in both countries, and allowing for the very different sizes, the telecoms market is much more competitive over here; using mobiles and data plans as an example, there's nothing really decent for less than $50 AND you have to pay a lot for the phones. Likewise the monthly cost for a broadband connection is much higher.
Posted by rgenung over 4 years ago
Just keep Verizon out of UK! Seemingly as corrupted as Murdoch's!
Posted by andrew (Favicon staff member) over 4 years ago
@nstrudwick Was my point really, as spend a couple of weeks a year in US, and not in the chic east/west cities.
Posted by nstrudwick over 4 years ago
Andrew, I agree. Where I am in the US is in Memphis, so we get good city type speeds, but it ain't cheap. If you think about things like iphones they were available off contract and via numerous providers in the UK long before they were so in the USA.
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