Spotted on CrunchGear (via Ars Technica), there’s a new Internet service in Orange County offering 50 megabit-per-second Internet speeds at 30 to 40 percent less than Verizon FiOS.

DSL Extreme, a Los Angeles-based Internet service provider, is offering service with 50 Mbps speeds for $99.95/month, or $40 to $65 cheaper than the same service from Verizon. (For those just tuning in, Verizon has been planting fiber-optic cables in areas it already offers telephone service. With fiber, the company can offer 50 mbps Internet speeds, full TV service and, of course, phone service). For both services, the fastest UPLOAD speed is 20 Mbps, which is faster than any other Internet service available.

And what do you know… It appears that DSL Extreme is using Verizon’s fiber-optic lines. I just checked a few O.C. addresses where FiOS is offered and yup, DSL Extreme is available at those houses, too. Addresses where FiOS is not available don’t qualify for the DSL Extreme service.

This could be good news for Verizon, which has had a hard time signing up customers in our area. By reselling the lines, Verizon can make a cut of the sale. This is something regional DSL providers have long done to offer Internet service to consumers. 

But then again, Verizon is already worried about the local cable TV company offering outrageous deals to residents living in new FiOS TV neighborhoods. It can’t be happy that Internet companies reselling its service are undercutting FiOS prices by 30 to 40 percent. However, as Ars Technica points out, Verizon could compete more on price. It charges just $90 in New York and Virginia for the same 50 Mbps connection that we in O.C. must pay a minimum of $139 to receive.

DSL Extreme’s “Fiber Extreme” service is available to 10.4 million households in 17 states (including CA, CT, DC, DE, FL, IN, MA, MD, NJ, NY, OR, PA, RI, SC, TX, VA, and WA). That’s the same exact number of eligible FiOS Internet households that Verizon reported in its earnings. You can check availability for your home at dslextreme.com/fiber or www.verizon.com/fios.

Keep in mind that DSL Extreme’s price  is introductory. This is a 12-month contract that will cost $250 to cancel.

But I just checked with a DSL Extreme customer service rep who told me how much the price goes up after the year. Not much! Just $10 a month for the 50 Mbps service if you commit to a second year, or $30/month if you don’t. Here is the break down:

Source: Verizon and DSL Extreme

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