Cablevision appears to have struck a nerve at Verizon with its launch of a 101 megabits-per-second broadband service.
On Tuesday, Cablevision detailed the launch of Optimum Online Ultra, a 101 Mbps service, available in the New York area. The service, which will be offered in Cablevision's region, beginning May 11.
Optimum Online Ultra, which leverages the potential of DOCSIS 3.0 and far exceeds the speeds available from any other cable or telco provider - at a significantly lower cost - builds upon the enormous success and market credibility established by Optimum Online over more than a decade.
The real kicker: Cablevision's new service starts at $99.95 a month. That's a bit worrisome to Verizon, which could offer 100 Mbps as an option, but hasn't priced a plan yet. In fact, Verizon's 50 Mbps plan will run you $140 a month. Holy price pressure Batman!
Verizon's policy blog takes aim:
With today’s technology, you don’t have to break much of a sweat to deliver 100 Mbps to a few customers. But given the inherent limits of the cable platform, a cluster of bandwidth junkies living near each other could be a real problem. One estimate is that a single 101 Mbps customer would use some 60% of the capacity in a neighborhood. Other users? Outta luck.
Verizon then adds:
Cablevision is offering very high speed service to a very limited number of customers when there is little evidence of market demand for the speed. It is a parlor trick.
DSL Reports Karl Bode dismisses Verizon's talk, which is a bit comical.
As for the rest of us I encourage these broadband wars and invite Cablevision to my neighborhood (we have Comcast) just to push Verizon FiOS prices down.