Verizon Expands FiOS Triple-Play - Analyst Blog

Verizon (VZ) has expanded its FiOS bundled service portfolio with the launch of its latest triple-play (voice, Internet and video) service for its FiOS TV subscribers following both English and Spanish language program channels. The new service package, called La Conexion FiOS triple-play, bundles the carrier’s FiOS TV, FiOS Internet and wireline voice services.

 

La Conexion triple-play, which is available for a monthly fee of $89.99 with a two-year service contract, offers FiOS TV customers a vast range of TV programming with more than 175 entertainment channels (including music, movie and sports) and best-in-language family programming.

 

Moreover, subscribers to the new bundle package have access to the FiOS Internet service that offers downstream and upstream speeds of 15 megabits per second (Mbps) and 5 Mbps, respectively. While Verizon is also offering wireline voice service (with unlimited nationwide calling) as part of the triple-play package, customers have the option of adding the carrier’s wireless service as well.

 

Effective April 19, 2010, Verizon has guaranteed that the prices for its FiOS bundle services will not change during the first two-year contract tenure. Many customers have experienced price escalations during the service term once the promotional price scheme expires, resulting in hefty monthly bills.  

 

Verizon remains significantly challenged by the intense competition from cable TV operators who are aggressively promoting triple-play offerings to consumers in overlapping markets. Leading cable companies such as Comcast (CMCSA) and Time Warner Cable (TWC) have also started offering wireless broadband services. Moreover, Verizon’s archrival AT&T (T) is also aggressively marketing discounted bundle services and is rapidly expanding coverage markets.

 

As such, Verizon is aggressively promoting triple-play and quadruple-play (wireless, wireline voice, Internet and video) bundle services leveraging its coveted fiber-to-the-premises (FTTP) network to protect markets from cable and other competing offerings. The company’s FiOS triple-play bundled service coverage reached roughly 11 million premises at the end of 2009.

 

Expansion of FiOS services remains an integral part of Verizon’s long-term growth strategy. Increased market penetration of the FiOS footprint and the roll-out of the 4G Long-Term Evolution (LTE) service, planned in fourth-quarter 2010, are expected to strengthen Verizon’s market position against its major rivals.