Verizon Hikes DSL Price

Verizon Communications earlier this week raised prices for its lowest level DSL service to $17.99.

The change, a mark-up of 20 percent, affects only new users of the 768 kilobit per second service. Those who subscribed during the $14.95 period are guaranteed the lower price until their one-year contract expires.

In August, Verizon made waves by introducing the $14.95 pricing, bringing DSL in line with dial-up charges.

Since that time, Verizon has reported 613,000 new subscribers. The number of DSL subscribers should double over the next five years to 413 million by the end of 2010, according to research firm In-Stat.

“There are several reasons behind the rapid growth in worldwide broadband subscribers,” said In-Stat analyst Mike Paxton.

Paxton said price reductions, along with the increased availability of services and applications requiring broadband connections, have fueled broadband adoption.

Verizon’s pricing change will have little effect on continued broadband adoption, he predicted.

“Pricing is important, but it’s not driving the train,” said Paxton, who added that Verizon is trying to move DSL back to a profitable service.

At $17.99, the level is still lower than competitors, he said.

DSL remains the dominant broadband access method, according to In-Stat. DSL accounts for 69 percent of all broadband subscribers worldwide.