Verizon Offers Data-Only Broadband With Its FiOS Internet Package

More and more broadband Internet and Pay-TV providers are catering to an ever-increasing population of cord cutters – people who decide it’s no longer worth paying a cable or satellite bill to get their favorite programming.

Verizon has available a $59.99 FiOS Internet package that includes local TV channels, Showtime, HBO and a free year of Netflix with 50 megabits per second of broadband speeds.

AT&T, like other ISPs, have tried to bring customers in with their data-only broadband subscriptions. AT&T has the U-Verse broadband package that includes one year of Amazon Prime, a video service and HBO for $39.99.

It’s Verizon, however, that’s taken a bold move and it’s the latest sign of rising power that consumers don’t want to pay for conventional pay-TV packages.

In the last few weeks, content companies have started to target about 13 million broadband homes without any kind of pay TV. HBO and Showtime will soon have their own standalone Net-delivered subscriptions. CBS and recently set in motion two Net TV offers – subscription-based All Access service and CBSN 24/7 news network.

Verizon’s offering started in October, just in the New York region. However, the company went nationwide with it last week. According to John Harrobin, Verizon’s chief marketing officer, people are picking the data-only packages and subscribing to Hulu or Netflix.

Verizon is hoping customers who enjoy the experience will include more services like FiOS TV, which allows them to watch content outside their house using the FiOS mobile app.

Analysts are in agreement about the move. Tim Horan, an analyst with Oppenheimer said the Verizon package is very competitive and looks to recapture cord cutters. He said it could have a significant impact on their fourth quarter earnings and have a slim negative impact on Comcast.

Companies like Verizon that provide both conventional pay TV and broadband service are hedging bets that millenials and young customers will choose extra services in the future. Harrobin said life stages tend to impact a person’s usage, which should make the whole cord cutting experience an interesting piece to watch.


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