Verizon Sees Smartphone, Tablet Subsidy Costs Dropping in 2-3 Years
March 5, 2013 3:31 PM
It's likely due to increased competition and LTE
A Verizon executive believes smartphones will see lower subsidy costs for carriers over the next few years.
Fran Shammo, Verizon Communications CFO, said that he expects subsidies for mobile devices like smartphones and tablets to drop in the next two to three years due to increased competition and use of LTE technology.
"I'm a believer that over the next two to three years subsidies will start to decrease just because of the ecosystems," said Shammo.
Shammo, who spoke at the Deutsche Bank 2013 Media, Internet & Telecom Conference, bases his claims on the fact that more mobile platforms are emerging, such as Microsoft's Windows 8 and BlackBerry's BlackBerry 10. Increased competition could lead to lower smartphone costs, and hence, lead to lower subsidy costs for carriers.
Also, through the use of
(such as Verizon's Voice over LTE), mobile devices can be launched without CDMA chipsets in them, which would also reduce prices.
While reduced subsidy prices is great for carriers, since subsidy costs are a large part of the their expenses, carriers like Verizon can easily make up for subsidy costs over the course of customer contracts with
more expensive plans
Shammo discussed Verizon's Share Everything plans, which 23 percent of its postpaid customers joined at the end of the fourth quarter. He added that Verizon has seen great adoption of mobile hotspot devices, which leads to higher average user revenue.
, Verizon posted $30 billion USD in revenue, up 5.7 percent from a year ago. It also added 2.1 million customers, bringing its total to 98.2 million wireless subscribers. The carrier sold 7.3 million LTE smartphones and hotspots for the quarter, moving its LTE technology along.
Just last month, Verizon announced
costly prepaid plans
including $60 USD/month for unlimited 3G talk and text, plus 500 MB of data and $70 USD/month for unlimited 3G talk and text, plus 2 GB of data.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
Verizon Offers up Pricey Prepaid Plans: $60/month (500 MB); $70/month (2 GB)
February 1, 2013, 3:30 PM
Verizon Earnings Sag, but Posts Record Subscriber Increase Driven by iPhone
January 22, 2013, 3:19 PM
Verizon Wireless to Kill Unlimited LTE Data, Even for Grandfathered Users
May 16, 2012, 4:25 PM
Xiaomi Mi 6 - Flash Sale on April 28 in China
April 26, 2017, 7:45 AM
Apple Watch NikeLab Limited Edition unveiled.
April 22, 2017, 6:20 AM
What is the Apple’s iPhone 8 specifications and release date?
April 14, 2017, 5:43 AM
Xiaomi Mi Pad 3 tablet with Hexa –Core SoC, Android Marshmallow
April 6, 2017, 6:40 AM
Vivo launches V5 Plus IPL edition smartphone
April 4, 2017, 11:10 AM
Samsung S8 and S8 Plus: On Sale April 21 at Major Wireless Dealers
March 30, 2017, 7:35 AM
Most Popular Articles
Surface Pro 5 Rumors - New Release Date and Price
April 22, 2017, 6:45 AM
SAPPHIRE PULSE Radeon RX 580 8GD5 – Great Value for the Money
April 20, 2017, 7:47 AM
Dell Inspiron 17 7000 – A Premium Laptop featuring 7th Gen Intel Core i7 in a 2-in-1 Frame.
April 19, 2017, 7:45 AM
Tesla will announce electric lorry in September
April 19, 2017, 6:20 AM
Meet the Smartphone with four cameras - Alcatel Flashphone
April 5, 2017, 11:20 AM
Latest Blog Posts
Google Co-Founder, Sergey Brin has an Airship
Apr 26, 2017, 6:43 AM
Samsung Galaxy S8 and S8 Plus – Lots of Glass that Breaks Easily
Apr 25, 2017, 7:20 AM
Samsung Galaxy S8 – Warning for Pet Owners
Apr 24, 2017, 5:59 AM
Sound Bars and the Costs?
Apr 23, 2017, 6:30 AM
Link your Brain to Your Computer – In Four Years…Maybe
Apr 22, 2017, 7:03 AM
Google Home can now identify users by their voice.
Apr 21, 2017, 7:15 AM
Amazon Lex – Now Available for Developers.
Apr 20, 2017, 6:58 AM
You can now use Instagram offline on your Android Smartphone
Apr 19, 2017, 8:00 AM
Now you can livestream to YouTube from your mobile device.
Apr 18, 2017, 8:05 AM
Google Home – Is It a Spy Device?
Apr 17, 2017, 7:30 AM
Apple added to self –driving test permit list
Apr 15, 2017, 6:21 AM
Project Scorpio – Coming on June 11
Apr 14, 2017, 6:20 AM
Looks Like Samsung Has Been Forgiven.
Apr 13, 2017, 6:50 AM
United Airlines - Blasted on China’s Social Network and the Stock Market
Apr 12, 2017, 6:50 AM
Amazon's Third-Party Sellers Hacked
Apr 11, 2017, 6:25 AM
Microsoft Surface Pro5 Details Revealed
Apr 9, 2017, 6:41 AM
Own An Android Phone? Then you could be hacked over Wi-FI
Apr 7, 2017, 6:47 AM
Apple confirms iOS 10.3 bug and its effect on iCloud Services
Apr 6, 2017, 6:30 AM
Apple Rolls Out New Version of Apple Music
Apr 5, 2017, 10:35 AM
Apple in the News
Apr 4, 2017, 9:03 AM
Apple iPhones Will Soon Feature Graphics Chips Designed BY Apple
Apr 3, 2017, 6:23 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information