DSL Is America’s Choice for Broadband

June 15, 2006

More Than Half of New Broadband Subscribers Now Choose DSL Over Cable

As Many as One in Seven New Verizon Online DSL Customers Have Switched From Cable

NEW YORK - Fast, affordable DSL is America’s choice for broadband, according to a number of recent independent research studies. That’s big news because about 10 million new subscribers signed up for broadband service in America last year.

“Smart shoppers now consider DSL the broadband connection of choice,” said John Wimsatt, senior vice president for Verizon’s Broadband Solutions group. “We’ve signed up record numbers of new customers because we’re offering them a choice of fast speeds, affordable pricing and a multitude of services that help them get the most from their high-speed connection.”

DSL Market Share Climbs

The Leichtman Research Group reports that more than half of all new high-speed Internet customers chose DSL over cable modem service in 2005, and that Verizon netted the most broadband customer additions among all cable and DSL providers in the nation over the past six months (“1Q 2006 Quarterly Notes,” Leichtman Research Group Inc.).

In another recent study (“The State of Internet Access,” Forrester Research Inc., April 2006), Forrester Research found that DSL sales and market share continue to climb, outpacing cable growth. The industry research firm reported that in 2005, the nation’s major DSL providers increased their customer base by 39 percent, nearly double the major cable providers’ 21 percent increase in cable modem users. The study shows Verizon surpassing the industry average, with 43 percent year-over-year growth in DSL subscriber additions. Verizon currently serves nearly 6 million wireline broadband customers.

Clifford R. Holliday, analyst for IGI Consulting Inc., said DSL’s surge toward the head of the pack is a dramatic success story (“xDSL - The Telcos Just Keep Getting Stronger,” www.igigroup.com, May 2006).

“Just a short time ago,” Holliday said, “the cable companies held a clear two-to-one market share advantage. The split is now about 56 to 44 and closing fast. This trend has to be read as a significant defeat for the cable companies.”

Verizon’s Wimsatt said new broadband customers are not the only ones who are choosing DSL -- cable modem customers are, too. “As many as one in seven new Verizon DSL customers who order service online have told us they are leaving cable,” he explained.

DSL Favored by ’Late Majority’ Broadband Shoppers

DSL’s growing popularity shows that after the early adopters, the next wave of customers - those Wimsatt calls the “late majority” and who weigh their purchase decisions more carefully - choose DSL.

“Late majority customers are not easily swayed by cable’s over-inflated claims of superior speed, quick-fix bandwidth boosters or short-term, promotional pricing that skyrockets later,” he said. “These careful shoppers most want reliability, affordability and overall value. With DSL, they know they are making a smart choice they won’t regret later.” He continued:

“We’ve made DSL a superior value for all broadband users. ”We offer a choice of speeds to meet different customer needs, and our pricing has remained consistently affordable over the years. Our subscribers also get all the services and applications that let them truly benefit from broadband. For example, our Verizon Internet Security Suite and Verizon Games Network services are second to none.

“We’ve also partnered with the premier online content and applications providers in the world, including Yahoo!, MSN, ABC, Disney, ESPN and Rhapsody, to give customers the very best in online video, music, news, family fun, productivity tools and much more.”

Consumers can visit www.verizon.net to see if Verizon Online DSL is available to their homes and to order service. Consumers who order an annual service plan online can choose from a maximum connection speed of up to 3.0 Mbps (megabits per second) downstream and 768 Kbps (kilobits per second) upstream with the first month free, the second and third month for $21.95 per month, and $29.95 per month thereafter. Or, they can select a maximum connection speed of up to 768 Kbps downstream and 128 Kbps upstream with the first month free for just $14.95 per month thereafter when ordered online. Both plans include 24/7 technical support, a 30-day money-back guarantee, a choice of free Verizon Yahoo! or MSN Premium services, 9 e-mail accounts, 10 MB of personal Web space and a do-it-yourself installation kit.

Verizon also has a number of DSL plans that offer excellent value for business customers, with maximum connection speeds ranging from up to 768 Kbps/128 Kbps to up to 7.1 Mbps/768 Kbps. For more information on business DSL offerings, visit www22.verizon.com/content/BusinessDSL/.

Verizon Communications Inc. (NYSE:VZ), a Dow 30 company, is a leader in delivering broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, serving 53 million customers nationwide. Verizon Business operates one of the most expansive wholly-owned global IP networks. Verizon Telecom is deploying the nation’s most advanced fiber-optic network to deliver the benefits of converged communications, information and entertainment services to customers. Based in New York, Verizon has a diverse workforce of more than 250,000 and generates annual consolidated operating revenues of approximately $90 billion. For more information, visit www.verizon.com.


Media contact:
Bobbi Henson, 972-718-2225

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Bobbi Henson

Verizon Communications Inc.

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