U.S. carrier adds its name to an array of retail devices available for home networking.

In an attempt to maximize its return on the billions it is spending on its network upgrade, Verizon Communications will lend its brand this spring to home-networking equipment, which will be sold in a number of nationwide retail outlets.

It will be the first time that Verizon, the second-largest telecommunications carrier in the United States, will actually sell networking devices under its own brand name. The company currently packages devices such as modems and routers with its DSL services but retains the original manufacturer’s brand.

In the spring, Verizon will begin selling networking devices such as wireless routers, network cards, and USB (universal serial bus) adapters from low-cost manufacturer Belkin, but for the first time the company will use the Verizon brand.

By choosing Belkin instead of a more expensive brand, Verizon is making it clear that it is looking to cast a wider net for broadband subscribers.

The New York City-based carrier is currently spending billions of dollars upgrading its network for high-end services such as video and business applications, including telecommuting. But it all begins with signing up subscribers for broadband services. Inexpensive home-networking devices can be a crucial part of that demand stimulation.

The carrier has pushed the monthly cost of its low-end DSL service down to $14.95, which matches some dial-up prices. Verizon has also marketed its low-end DSL very heavily in most of its markets (see Verizon’s ‘Street Fight’ Prices).

Shares of Verizon rose $0.60 to $30.98 in recent trading.

Growth of DSL

About 40.2 million households subscribe to broadband services, representing about a third of the addressable market. But the U.S. market has been warming to DSL in the last few months.

Together DSL providers added 1.42 million new subscribers in the third quarter of 2005, an all-time record for a single quarter, according to Leichtman Research. The total number of new subscribers for DSL service in the corresponding quarter in 2004 was 379,000 fewer.

Verizon added 389,000 new DSL subscribers in the third quarter of 2005—a feat second only to AT&T, which added 528,000 new subscribers, the most of any broadband provider. That includes cable operators such as Comcast and Time Warner (see Broadband by the Numbers).

“Putting Verizon-branded products on the shelves in front of consumers provides awareness of Verizon as a full-service provider of broadband and simplifies the decision making and buying process,” said Catherine Stanley, Verizon’s director of brand management. “And retailers know that with Verizon products, they are adding a quality brand name their shoppers can rely on.”

According to Ms. Stanley, Verizon-branded networking equipment will be competitively priced, and will come with a raft of in-store merchandising, including separate kiosks and displays. The program will also include rebates, coupons, and other special offers.

Belkin, based in Compton, California, also markets VoIP hardware, audio/video systems, computer peripherals, power protection, cabling, and home-networking devices.

Under the terms of its agreement with Verizon, Belkin will produce, ship, and provide technical and customer support for the broadband networking equipment.