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Past reports indicate that Verizon may be aiming for eventual pay-per-play sales scheme

When Time Warner Cable Inc. (TWC), Comcast Corp. (CMCSA) agreed to sell America's top mobile carrier Verizon Wireless -- a joint venture between Verizon Communications Inc. (VZ) and Vodafone Group Plc. (LON:VOD) $3.9B USD of AWS ("advanced wireless services") spectrum, most assumed the deal was relatively straightforward for spectrum-hungry Verizon, who's currently in the middle of an LTE (4G) deployment push.

However, it appears the deal is a little bit more complex.  As part of the deal, The Wall Street Journal is reporting that the cable networks will partner with Verizon to resell its planned integrated video service, which will take on Google Inc.'s (GOOG) industry-leading video sharing site, YouTube.

Verizon CEO Lowell McAdam told the WSJ, "Technically, I think we could have something out that would be the beginnings of an integrated offering in time for the holidays."

Verizon says it plans to distribute the video both through the tentative joint venture with cable firms, to its mobile device subscribers, and to Verizon Communications' growing number of fiber-optic service (FiOS) customers.

Leaked Documents from a 2010 public webinar presented by top wireless service providers Allot Communications and Openet, indicate that carriers like Verizon (Verizon Wireless's parent Vodafone was shown in the slide) may hope to lure customers into an arrangement in which they are charged individual fees for each video view (the proposed rate for YouTube videos was $0.50).  However, Verizon might be willing to allow its subscribers to get their views at a discount -- or even for free -- as a means of forcing users away from YouTube and adding to its advertising/subscriber revenue.

(Update: A brief statement by Openet was retracted on request of Openet, hence the article shuffling.)

Source: WSJ

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How long...
By batjohn on 3/30/2012 12:30:04 PM , Rating: 4
How long till they announce that using their service won't count towards your data limit? Just a hypothetical but I could see it happening to steer people to their service over google.

RE: How long...
By tayb on 3/30/2012 6:06:14 PM , Rating: 3
Can't give preferential treatment to your own service. If they tried something like this they would get a royal smack down in court.

It wouldn't surprise me if Congress tried to pass a law to allow this though. Bunch of corrupt scumbags.

RE: How long...
By RufusM on 3/30/2012 8:28:25 PM , Rating: 3
Comcast has announced that their streaming service for xbox won't count against their monthly cap so this kind of crap is already starting.

Their argument is that it travels over their private network and not the Internet.

RE: How long...
By TSS on 3/30/2012 6:50:01 PM , Rating: 3
They can try, but fortunatly google is also a huge company with a big enough war chest to fight that out in the courts.

Here they will have to compete on an even field. And somehow i don't see them winning out there as long as youtube exists and is free.

People might use them concurrently if they offer premium content delivered with a youtube ease. But still, youtube remains the place to go for videos. It's impossible to beat free.

RE: How long...
By gorehound on 4/1/2012 9:33:30 AM , Rating: 3
Sticking with youtube.
I will not go with Verizon/ATT/BIG ASSHOLE TELCO starting new Video Website.
Youtube works for the whole World.I will not feed the greed of Telcos.

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