Published June 2003

Verizon earns raves for plan to cut prices, increase access

Good news travels fast.

Just ask the people at Verizon Communications.

The company’s May pledge to aggressively market its high-speed digital telephone-line Internet service against cable companies’ Web service got a lot of attention in a hurry.

Verizon cut the standard DSL broadband service from $49.95 and higher to a flat $34.95 per month. Customers who also subscribe to Verizon’s local, regional and long-distance calling services will pay only $29.95, saving even more.

And, in New York City, Verizon will make wireless — wi-fi — connections to the Internet available at 1,000 pay phones in a test of services that could be extended to other areas of the country in coming years.

That’s news that really grabbed a lot of attention:

Forbes.com: The Verizon announcement “may be the best news the high-tech industry has seen all year ... (a plan to) slash prices, increase speeds and reach more customers with high-speed Internet access — moves which could invigorate the relatively torpid U.S. broadband market. ... (The) moves mark Verizon as the most aggressive of the major broadband providers.”

Reuters News Service: “This is one of the most innovative initiatives I’ve seen to date. Using pay phones as wi-fi hot spots to blanket a city (New York) is a stroke of genius.” — Jeffrey Kagan, independent telecom analyst

The Boston Globe: “Escalating the battle to bring high-speed Internet connections to tens of millions of American homes, Verizon Communications unleashed a flurry of new offerings yesterday, including cheaper and faster services — with free high-speed wireless connections from converted pay phones thrown in as well. ... Industry analysts said Verizon’s moves were likely to turbo-charge the already booming growth in broadband home Internet connections.”

The New York Times: “Verizon Communications (has) introduced one of the oldest items in its inventory — the humble pay phone — as its newest weapon in the bitter competition to dominate the broadband communications market of the future.”

Best of all, perhaps, is that there is considerable, immediate local impact in Snohomish County. Locally, Verizon will add about two dozen new DSL remote hubs across Snohomish County to make the service more available.

Imagine lowering prices, increasing DSL speed and adding access to additional markets all at the same time. That’s a pretty bold move. Yet the timing of the announcement seems to be just right.

Nice going, Verizon.

Related: Verizon announces plan to cut prices, expand service

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