In order to compete with Altice USA's plans to offer multi-gig internet alternatives in places where it competes with Fios, Verizon unveiled a new symmetrical 2-gig broadband package in New York City. By doing so, it joined a wave of other carriers in doing so.
According to a Verizon representative, the service is now offered in select areas of Manhattan, Queens, and Staten Island and is delivered utilizing NG-PON2. Later this year, the operator intends to extend the 2-gig service to more Fios markets before eventually making it available throughout the whole Fios footprint.
Related: Review: Verizon Fios Internet in New York City
A multi-gig offer, according to the spokesman, was determined to be made now due to "growing demand for applications that require more symmetrical speeds." According to the official, "New York City is home to nearly to one-third of Fios users, therefore it was a natural decision to choose that area to have the most immediate impact for customers," when asked how it selected its debut market.
Customers using the $120 per month plan will require a router with a 2-gigabit capability. According to the representative, Verizon unveiled the new plan on Tuesday along with a suitable router that was bundled with the service at no additional cost.
Verizon now counts among the companies giving customers multi-gig speeds. Last month, Ziply Fiber and AT&T joined the group with their respective 2-gig and 5-gig service offerings. Other companies providing several gigabits per second broadband include Google Fiber (2 gig), TDS Telecom (2 gig), MLGC (5 gig), and Dobson Fiber. Additionally, plans to introduce multi-gig offers soon have been officially announced by Altice USA, Frontier Communications, Windstream, and Alaska's GCI.
The cost of Verizon's 2-gig service is on the higher end of the price range. At the moment, Ziply, AT&T, and Google Fiber are offering $100, $110, and $120, respectively.
Given that Verizon has indicated explicitly that it intends to cover areas of Fios overlap in the New York metropolitan area with 10 gigabit fiber by the end of 2023, Altice's anticipated action may be the most pertinent for Verizon. CEO Dexter Goei stated on Altice's Q3 earnings call in November that the company was planning to launch a converged fixed and mobile product in Q1 to more effectively compete with Fios.
Roger Entner, the founder of Recon Analytics, claimed that while cable has historically prevailed despite fierce fiber alternatives like Fios, "the arms race is equal" with Altice's transition from HFC to fiber.
Regarding Verizon's multi-gig decision, he remarked, "They want to shore up their market." They intend to remove Altice's legs before they begin to run.
Entner tacked on Verizon can test out its multi-gig offer in New York as well.
He added, "It's also a sizable trial market for Verizon." "We are aware that the cable operators are putting a lot of effort into developing high splits and cable head splitting as a means of delivering multi-gig service. They will therefore apply what they are learning in this biggest test market to other markets.
