Verizon Unveils New Product Package to Break Broadband Markets
Verizon (NYSE:VZ) recently announced it will offer new “FIOS” package plans that will allow customers “greater flexibility and cost savings while choosing a plan by adding flexibility to its national triple play packages (From gigaom.com).” The new packages will offer customers more choice by allowing them to choose which services they want to subscribe to (for example customers can elect to pay for internet and voice services but not cable), whereas in the past Verizon subscribers were forced to foot the bill for the whole trio of offerings.
The move comes as the company is gearing to expand its “FIOS” presence in broadband markets, in an attempt to cater to younger demographics who are increasingly insistent upon paying only for internet access. According to a column from trefis.com, “The rationale of increasing the breadth of suitability is further complemented by the fact that TV viewing habits of consumers are changing. This implies that having the flexibility to chose from multiple broadband and TV tiers and forming a more personalized bundle may appeal more to consumers and help them decide this trade-off.”
Verizon’s move comes in good time, as the company’s chief rival, telecommunications mogul AT&T (NYSE:T), inches closer towards a buyout of T-Mobile USA that would make it far and away the largest broadband service provider. Despite intense initial opposition to the merger on part of smaller telecomm rival Sprint (NYSE:S), the move gained a surge of momentum yesterday when tech-leaders Microsoft (NASDAQ:MSFT) and some fifteen other companies sent letters to the FCC in support of the T-Mobile buyout.