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(Update: A brief statement by Openet was retracted on request of Openet, hence the article shuffling.)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