Verizon is launching Verizon 5G Home on October 1 in parts of Verizon 5G Home (a fixed wireless service) will initially be available in parts of Houston, Indianapolis, Los Angeles and Sacramento, providing the first U.S. real-world test of customer demand for 5G fixed wireless, and a test of how much fixed network internet access market share might be disrupted.
Verizon 5G Home customers should “expect typical network speeds around 300 Mbps and, depending on location, peak speeds of nearly 1 Gig, with no data caps,” Verizon says. The obvious importance is that the fixed wireless service now offers speeds quite comparable, if not better, than service provided by cabled network providers in the markets Verizon is targeting, and matches--if not exceeds--the usage allowances incumbent suppliers provide.
Perhaps significantly Verizon says “Verizon 5G Home is ideal for consumers looking to ‘cut the cord’ or upgrade from their current cable service.” That suggests Verizon believes it will win most of its customers from other cable providers. Given that cable speeds arguably are faster than the competing telco’s offers in most of those initial markets, one might suspect that many of the switchers would come from those customers buying the slower speeds.
Verizon likely believes that if those customers wanted to upgrade, they already would have. And that makes the key competitor the cable operator, which serves customers with an arguable demand for faster internet access service.
After that introductory period, current Verizon Wireless customers with a qualifying smartphone plan will pay $50 per month for the service, while non-Verizon Wireless customers will pay $70 per month. This monthly charge includes all taxes and fees, and does not require an annual contract. There are no additional hardware costs, Verizon says.
There are a couple of noteworthy points here. Verizon seems to have concluded that consumers like the “no hidden charges” approach, as most other ISPs likely charge taxes and fees on top of the recurring service payments.
Verizon is not requiring a contract, which most cable operators do, when offering their best pricing. Also, Verizon is not charging for customer premises equipment, which is a typical cable requirement.
5G Home customers will also get YouTube TV free the first three months ($40/month thereafter) and a free Apple TV 4K or Google Chromecast Ultra device at installation. U.S. consumers can visit FirstOn5G.com to learn more.
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