Verizon yesterday launched a new digital fixed telephony service based on Internet Protocol technology in all areas covered by its 'FiOS' direct fibre-optic local access network. The VoIP service, 'FiOS Digital Voice', uses IP to transmit calls over Verizon's private managed broadband network, making it distinct from unmanaged or access-independent services which use the public internet to route calls. Verizon's existing 'Freedom Essentials' fixed voice package for FiOS customers uses circuit-switched (PSTN) technology; users can change to the new IP voice service at no extra cost. When purchased as a standalone product, the existing FiOS phone service costs USD49.99 a month; the new VoIP service costs USD44.99 a month standlaone, although the company expects most users to purchase it in a bundle to receive a substantial discount. Both VoIP and circuit-switched standalone packages offer unlimited local and long-distance calls. Existing FiOS broadband or multi-service customers can add the new digital telephony plan for USD14.99 a month, with a standard call rate of USD0.05 per minute. FiOS Digital Voice is now available across Verizon's fibre access footprint in New York, New Jersey, Massachusetts, Rhode Island, Florida, Texas, Virginia, Maryland, Washington DC, Delaware, Pennsylvania and California.

Verizon joins rivals such as Comcast in offering mass market IP telephony, aimed at taking on cable-based competition head-to-head. In its marketing for the new FiOS Digital Voice it claims to offer more calling features than available cable digital telephony products, whilst promising 'brilliantly clear voice quality'.