Light Reading

Verizon to Roll Out Sharable Data Buckets

Sarah Thomas
4/19/2012
50%
50%

Verizon Wireless plans to let users start sharing their data plans among multiple devices by the middle of the year in a bid to boost overall customer data usage.

Verizon CFO Fran Shammo revealed the plan on the carrier's first-quarter earnings call Thursday, but didn't elaborate much. Verizon reported a solid quarter driven by growth in its postpaid wireless business, but Shammo said its attention is turning away from just adding more devices to its network to eking out more value from the devices that are latching on. (See Verizon Earns $3.9B as Data Usage Jumps ).

"We're extremely pleased with the growth of wireless business," Shammo said. "There will be other categories that drive wireless growth in the future," he added, referencing the data-share plan coming in mid-2012 that will let customers dip multiple devices into one bucket of data. That sharing would be extended to tablets, phones and machine-to-machine connections, which have been subject to increasingly complicated data plans.

Verizon has said it is looking at data-sharing features similar to what it offers families for voice and text buckets, but this is the first time the carrier has put a deadline on this sort of plan. Now that it no longer offers unlimited data, a sharable bucket of data could offer customers more flexibility. (See New Data Plans Keep It in the Family .)

Device drivers
The main reason Verizon is turning from net adds to data growth is that it had strong device sales across several categories in the first quarter. The carrier sold 6.3 million smartphones, including 2.1 million Long Term Evolution (LTE) phones. Now, 8 million, or 9 percent, of Verizon's customers are using LTE devices.

At the same time, it sold 3.2 million iPhones, but the carrier downplayed Apple Inc. (Nasdaq: AAPL)'s smartphone in favor of talking up LTE. (See Verizon Goes All Out for LTE Smartphones .)

For its customers that upgraded in the quarter, 42 percent were first-time smartphone buyers. Shammo said Verizon is looking at converting the 53 percent that still use basic phones, as well as increasing average revenue per user (ARPU) for those customers. The average customer today spends $54 per month, $23.80 of which goes to data.

"We are very, very confident that we're on a path to accelerate the growth of our ARPU," he said.

LTE network update
Shammo reiterated Verizon's LTE leadership as well, noting that it has turned on the network in 230 markets, covering more than 200 million PoPs or two-thirds of country. It plans to have its nationwide 3G footprint covered by LTE by mid-2013, and Shammo said that consumer awareness of Verizon's LTE network is on the upswing. (See Verizon's LTE Blitz Reaches Two-Thirds of US and Where's Verizon's 4G Going Next?)

The CFO also mentioned that Verizon is interested in supporting a third platform, giving a nod to emerging players like Microsoft Corp. (Nasdaq: MSFT)'s Windows Phone. Verizon gave Android a boost in the beginning, he said, and it's looking to do the same with "the third ecosystem."

— Sarah Reedy, Senior Reporter, Light Reading Mobile

(12)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
SReedy
50%
50%
SReedy,
User Rank: Blogger
12/5/2012 | 5:35:56 PM
re: Verizon to Roll Out Sharable Data Buckets


I'm glad to see Verizon is making a commitment to shared data plans. It'd help out consumers who own both a tablet and a smartphone, as well as families. Plus, I'm willing to bet Verizon charges more for the ability to share data, so it's a win for them too.

kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 5:35:55 PM
re: Verizon to Roll Out Sharable Data Buckets


Didn't listen to the call -- are they still doing the double data promotion on LTE phones?


Not hard to understand why the iPhone is still outselling their LTE phones, which they are apparently selling a bunch just by default (aka no other option). Without any innovation on pricing and with new devices at a premium to the iPhone and no compelling 4G only applications... we are sounding like broken records, no? But it's got to be disappointing for Verizon to have this shiny new 4G network and people still pick the 3G iPhone... does that mean that all that 4G marketing isn't working?

kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 5:35:55 PM
re: Verizon to Roll Out Sharable Data Buckets


Didn't listen to the call -- are they still doing the double data promotion on LTE phones?


Not hard to understand why the iPhone is still outselling their LTE phones, which they are apparently selling a bunch just by default (aka no other option). Without any innovation on pricing and with new devices at a premium to the iPhone and no compelling 4G only applications... we are sounding like broken records, no? But it's got to be disappointing for Verizon to have this shiny new 4G network and people still pick the 3G iPhone... does that mean that all that 4G marketing isn't working?

SReedy
50%
50%
SReedy,
User Rank: Blogger
12/5/2012 | 5:35:55 PM
re: Verizon to Roll Out Sharable Data Buckets


While Shammo didn't talk much about the iPhone, it still makes up more than half of its smartphone sales and over a million more than LTE phones. I just think Verizon wants to demphasize it, one, because the subsidies are hurting it, and, two, because it really needs to push more LTE phones. (Of course, this will all change when there's an LTE iPhone on the market.)

SReedy
50%
50%
SReedy,
User Rank: Blogger
12/5/2012 | 5:35:54 PM
re: Verizon to Roll Out Sharable Data Buckets


Yep, they are still doing the promotion, and a spokeswoman says she doesn't know the end date for it.


I think it means iPhone marketing is just working better. If you don't go iPhone, you go LTE. And there definitely hasn't been any marketing from Verizon on why LTE is better than the iPhone...that'd be an interesting strategy.

jalawler
50%
50%
jalawler,
User Rank: Light Beer
12/5/2012 | 5:35:53 PM
re: Verizon to Roll Out Sharable Data Buckets


I've heard this announcement twice before; when will they attach a date?

gtchavan
50%
50%
gtchavan,
User Rank: Light Beer
12/5/2012 | 5:35:53 PM
re: Verizon to Roll Out Sharable Data Buckets
The killer app for for LTE is any app on iPhone 5, because you won't get the pesky message that says, find a wifi hub because your telco network is too slow. The real test for the stability of Verizon network will be iPhone 5.
SReedy
50%
50%
SReedy,
User Rank: Blogger
12/5/2012 | 5:35:52 PM
re: Verizon to Roll Out Sharable Data Buckets


i hadn't heard the mid-year part before; just that they were exploring it.

jalawler
50%
50%
jalawler,
User Rank: Light Beer
12/5/2012 | 5:35:52 PM
re: Verizon to Roll Out Sharable Data Buckets


It looks like Lowell McAdam mentioned shared data coming in 2012 at the Dec. '11 UBS Global Media & Communications conference.  I thought Shammo also made a statement earlier this year mentioning mid-year, but that may not have been public.

SReedy
50%
50%
SReedy,
User Rank: Blogger
12/5/2012 | 5:35:49 PM
re: Verizon to Roll Out Sharable Data Buckets


Yeah, it was a pretty aggressive comment. I believe he actually said Verizon "made" Android...

Page 1 / 2   >   >>
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Documentaries
The Three Cs of MWC15

3|2|15   |   2:33   |   (0) comments


My visit to this year's Mobile World Congress is going to dominated by three Cs – cloud, cells and coffee.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
10 Weirdly Useful IoT Devices
Eryn Leavens, Copy Desk Editor, 2/24/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
FCC Adopts Title II Rules
Alan Breznick, Cable/Video Practice Leader, 2/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.