Need more Internet bandwidth? For businesses and consumers alike, things just got better. Verizon has announced 150 Mbps downstream by 35 Mbps upstream service will available in all of its FiOS territories by the end of the year. Previously FiOS was only available in a maximum of 50/20 Mbps ranging in various tiers down to 15/5 Mbps. The new, faster fiber-to-the-home offering will cost as low as $194.99/month (on a 1 year agreement with voice bundled) compared to $144.99/month for the former premier tier of 50/20 Mbps. Regardless, it's great news for businesses who can potentially increase bandwidth 100-fold and save money versus the cost of an Internet T1.
While additional Internet bandwidth is being made available and competition is being driven by Verizon and others, we are not seeing a reduction in price we have come to expect in the telecommunications world. Instead of replacing some of the slower tiers of service or reducing pricing throughout their offering, Verizon is just adding a tier and adding cost. I am not suggesting that the service is not a tremendous bang for the buck and that providing the bandwidth is cheap, however cost seems to be rising in the telecommunications world where we have seen nothing but falling costs over the past 10 years. The introduction of 4G wireless will certainly be a game changer, but this trend in the broadband world is definitely something worth keeping an eye on.
While additional Internet bandwidth is being made available and competition is being driven by Verizon and others, we are not seeing a reduction in price we have come to expect in the telecommunications world. Instead of replacing some of the slower tiers of service or reducing pricing throughout their offering, Verizon is just adding a tier and adding cost. I am not suggesting that the service is not a tremendous bang for the buck and that providing the bandwidth is cheap, however cost seems to be rising in the telecommunications world where we have seen nothing but falling costs over the past 10 years. The introduction of 4G wireless will certainly be a game changer, but this trend in the broadband world is definitely something worth keeping an eye on.
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