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NY’s Greenlight Networks cuts cost of 2-gig broadband in half

New York-based fiber provider Greenlight Networks is looking to win over cash-strapped consumers with a steep broadband price cut, shaving $100 off the monthly cost of its 2 Gbps service tier. The operator is also dropping the cost of its 1-gig service by $25 per month and adding a new 5 Gbps tier at the old 2-gig price point. The series of moves will allow Greenlight to undercut rival Charter Communications on price and better compete with faster offerings from Frontier Communications.

As part of the shift, the operator is eliminating its 750 Mbps offering. Its new plan line up will include a 500 Mbps option for $50 per month, 1 gig for $75 per month, 2-gigs for $100 per month and 5-gigs for $200 per month.

Asked whether the company has any concerns the price drop could negatively impact average revenue per user or returns on investment, a Greenlight representative said "The price drops make multi-gigabit speeds more affordable – essentially providing customers more bandwidth for the buck. As a result, we expect a positive impact as more and more customers select those higher speeds." The representative added that it is already "seeing an increasing percentage of our customers select 1 Gigabit services and higher."

Mark Murphy, Greenlight’s CEO, pitched the move as a response to pressures consumers are facing from inflation. "While the costs to build and manage our network are going up considerably, we're doing our best to hold the line on price increases,” he said in a statement. “We place a major emphasis on listening to our customers and they need faster internet at affordable prices.”

But the move also comes as Greenlight pursues an aggressive growth plan, aiming to reach 800,000 locations by 2027. As of March 2022, its footprint spanned 80,000 locations. That number now stands at more than 120,000 and growing.

The Federal Communications Commission’s new broadband coverage map shows that Greenlight’s footprint was primarily concentrated around the areas of Binghamton, Owego and Vestal, New York as of June 30, 2022. Its website states it is also expanding in the areas of Clifton Park and Malta near Albany; Endicott, Endwell and Johnson City near Binghamton; Cheektowaga and the city of Buffalo; and 13 towns in the Rochester area.

In December, the operator lit up service to 2,000 homes in Chili near Rochester. Greenlight said at the time it planned to add another 1,000 by the end of that month and 3,000 more by the end of 2023.

Its primary competitors are cable company Charter Communications and Frontier, which is itself expanding its fiber footprint. Charter offers a 500 Mbps product for $99.99 per month and a 1-gig option for $119.99 (though new customers usually get lower promotional pricing for the first year). Frontier provides a 500 Mbps service for $49.99 per month, 1-gig for $74.99 and 2-gigs for $149.99, with all of those prices including an AutoPay discount.

According to OpenVault’s Q3 2022 Broadband Insights Report, service tiers offering speeds of 1 Gbps or more are growing in popularity. As of Q3 approximately 15.4% of consumers were on plans providing 1 Gbps+, a number which was up 35% from the year prior.

This story has been updated to include a comment from a Greenlight Networks representative.

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