Verizon plots 2-gig Fios expansion, debuts 10-year price guarantee

Verizon tested the multi-gig waters with a limited rollout of 2 Gbps service in parts of New York City in February. It seems the initial rollout has gone well enough, with the operator now planning to expand its 2-gig offering to the entire city by the end of this year.

The operator offered little detail about the move. But a Verizon representative told Fierce that given New York City is home to one-third of its Fios customer base “it was a natural decision to start there.” The representative added it plans to expand the multi-gig tier across its broader Fios footprint throughout 2023.

“Early reception has been positive and we're looking forward to bringing this offer to more customers later this year and next,” the representative said.

In New York, Verizon is up against Altice USA, which is working to blanket the city and surrounding areas with its own 2-gig and 5-gig Optimum fiber offerings. Altice initially debuted the multi-gig options on parts of Long Island in June and expanded to Connecticut in September. It is continuing to deploy the service in phases across continues to roll out in phases across Brooklyn, the Bronx and New Jersey, though it’s not clear how quickly its build will take.

Price guarantee

Alongside the multi-gig expansion, Verizon announced a new 10-year price guarantee which will apply to all its Home Internet products including Fios and fixed wireless access. The offer is similar to T-Mobile’s Price Lock program, which allows subscribers to keep their starting monthly rate for as long as they’re a customer. Both offers appear to be jabs at cable’s pricing model, which typically includes initial promotional pricing and a price jump once the introductory period ends.

“No one likes when bills go up unexpectedly after a promotional period, so we’re solving that by offering a guaranteed price for home internet for 10 years,” Verizon VP of Marketing Strategy and Segment Planning Matt Coakley said in a statement.

The guarantee also has the potential to help Verizon minimize churn in the coming years as fiber proliferates. Fiber players have previously said they’re not concerned about fixed wireless operators because they believe the wireless service will not be able to effectively compete with fiber over the long term.

Verizon's Fios service ranges $49.99 per month for its 300 Mbps plan to $120 per month for the 2-gig offer, though it does offer discounts to customers who bundle their internet with eligible 5G mobile plans. Without discounts, its fixed wireless 5G Home Internet plans cost $50 per month for the basic plan or $70 per month for the plus plan.