Verizon Explores Faster DSL as Fiber-Optic Buildout Lags

Strategic Insights -

Verizon is testing a super-fast version of its digital subscriber line technology, which delivers Internet services over old-fashioned twisted copper telephone lines, to potentially offer download speeds of up to 7.1 megabits per second. This move comes as the company is also rolling out FiOS, its fiber-optic offering, in competition with cable companies. FiOS offers download speeds 10 times faster than DSL's current quickest speed and can also deliver cable television and home phone service over the same line at the same time.

Key Takeaways:

  • Verizon is testing a faster version of its digital subscriber line technology, which could offer download speeds of up to 7.1 megabits per second.
  • This upgrade comes as Verizon is also rolling out FiOS, its fiber-optic offering, which offers download speeds 10 times faster than DSL's current quickest speed.
  • FiOS can also deliver cable television and home phone service over the same line at the same time, eliminating the need for copper wires.
  • The faster DSL service could be a stopgap measure by Verizon in its battle against cable companies, retaining customers who might be lured away by ever-faster speeds.
  • Verizon's adoption of both DSL and FiOS reflects the company's strategy to deliver all manner of content, such as home entertainment, to consumers and provide the high-speed pipes for them to receive it.

Statistics:

  • Current download speed limit for Verizon's high-speed residential connections: 3 megabits per second.
  • Potential download speed for the upgraded DSL: up to 7.1 megabits per second.
  • Download speed for FiOS: up to 5 megabits per second.
  • Percentage of Verizon customers who won't have access to fiber service in the near future: 75%.
  • Current maximum download speed of Verizon's fastest and most popular DSL connections: 1.5 megabits per second.

Sources:

  • Sharon Beadle, Verizon spokeswoman
  • Jeff Bray, technology and media analyst at Babson Capital Management in Boston
  • The Boston Globe
  • Knight Ridder/Tribune Business News