Verizon sweetens FiOS deal with speed bump

Verizon will double its speeds across its entire fiber-based Internet footprint, with promised speeds topping out at 50 Mbps.

Customers in New York, New Jersey, Connecticut, Rhode Island, Massachusetts, and Florida already had a 20 Mbps symmetrical option as well as a 50 Mbps download / 20 Mbps upload option.

These plans will now be expanded to the remaining ten states that are currently FiOS-capable, including California, Delaware, Indiana, Maryland, Oregon, Pennsylvania, South Carolina, Texas, Virginia, and Washington.

Such a speed bump is necessary for FiOS to retain its speed edge, considering cable operators such as Comcast are preparing new systems that theoretically would deliver 50 Mbps downloads. That company has also stated a 2010 goal to bring 100 Mbps service to a majority of its service area, which would be based on the DOCSIS 3.0 standard.

While there has been question as to whether Comcast is able to deliver on its speed promises, research by BetaNews of reports from users of Broadband Reports indicates that for the most part, speeds are already quite close to the 50 Mbps promised. While some were seeing speeds well slower, like any broadband connection, transmission line quality is playing a large part here.

Average speeds seemed to be around 40 Mbps. This would follow what has become typical of Comcast's data rates, which are typically about 80 percent of the advertised rate. (It should also be noted that the Minnesota test area only uses three data channels, when there is capability for a fourth under DOCSIS 3.0.)

Data rates for FiOS seemed to be closer to the advertised speeds -- generally more than 90 percent of what was promised.

Verizon admits that it needs to compete: "The appetite for bandwidth shows no signs of slowing down. Neither will we. We've already had successful trials of the 100-megabit home, which will be a reality faster than anybody thinks," its president and chief operating officer Denny Strigl said.

FiOS' five-megabit plan will be upgraded to 10, and its 15 Mbps plan to 20. The 15 Mbps symmetrical option will become 20/20, and the top end 30/15 plan will be replaced by the new 50/20 option.

The speed increases are slated to take effect starting next week. However, consumers won't be automatically upgraded; they will have to request it. This is due to the fact that many could see slight price increases. The company did not elaborate as to the potential extent of those increases, although the top plan would stay at $139.95 per month ($89.95 per month in New York and Virginia).

Altogether, some 10 million are currently subscribed to FiOS. Verizon hopes to double this number within the next two years.