Verizon Sees Smartphone, Tablet Subsidy Costs Dropping in 2-3 Years
March 5, 2013 3:31 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
RE: lol @ Increased competition
3/5/2013 11:22:27 PM
RE: lol @ Increased competition
3/6/2013 1:02:47 PM
I have no problem paying $600 for a phone and having a $40/mo phone bill... If I choose a $600 phone that's up to me, why I have to pay $100/mo for phone service no matter what phone I have is quite annoying.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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
CVS, Rite Aid Kill Unofficial Apple Pay Support, Burn Google Wallet Users in the Process
October 25, 2014, 5:26 PM
AT&T Defeats Purpose of New Apple SIM, Locks iPad Air 2 SIMs to Its Network
October 24, 2014, 2:17 PM
Get Ready for "Microsoft Lumia" Smartphones in Next Few Months
October 24, 2014, 12:26 PM
Report: Samsung Galaxy S5 to Receive Android 5.0 Lollipop in December
October 24, 2014, 11:26 AM
Dreadful Fire Phone Sales Lead to $170M Writedown for Amazon
October 24, 2014, 8:55 AM
Xiaomi Moves Data Out of China to Woo EU, America, Escape Security Concerns
October 23, 2014, 5:11 PM
Most Popular Articles
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
Samsung Announces Galaxy S5 Plus with Snapdragon 805 Processor, LTE-A
October 22, 2014, 3:40 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
Apple's iPad Air 2 Features Triple-core A8X Processor, 2GB of RAM
October 21, 2014, 8:32 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information