A top Verizon executive signaled last week that the telecom giant remains open to the idea of capping Internet usage for those customers who consume the most, although he said there are no plans to introduce such a policy at this time.
In a post on Verizon’s PolicyBlog, C. Lincoln “Link” Hoewing, Verizon’s assistant vice president for Internet and technology issues, said the company has been “pleased with the way things are going and [has] been very successful selling our existing packages” as it rolls out its fiber optic service, FiOS, nationwide.
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“That said,” Hoewing added, “broadband is a competitive market and pricing packages and offerings are an important part of the market. Companies can try different pricing approaches and consumers will decide what they think.”
“I can see ways that usage packages could be priced that could really help many segments of the market, such as low level users,” he continued, adding: “I can’t predict what will happen in the future as the market evolves.”
Other broadband providers — including Verizon’s chief rival in Rhode Island, Cox Communciations, as well as Comcast, Time Warner Cable and AT&T — have begun experimenting with metered service, as consumption caps are sometimes called.
“Consumers are in charge and we’ll just have to see how they react to the market as it continues to evolve,” Hoewing said. “In the end, they will make choices that will help to drive more innovation and the offering of more options.”
Verizon Communications Inc. (NYSE: VZ), a Dow 30 company, delivers broadband and other communications services through two divisions: Verizon Wireline, which includes the Verizon Business and Verizon Telecom segments; and Verizon Wireless. The company has a staff of nearly 224,000. For more information about Verizon and its Rhode Island operations, visit www.verizon.com/ri.
