Light Reading

Verizon's Coming Attractions: 4G Video

Dan Jones
3/10/2014
50%
50%

4G LTE video will help to drive Verizon's wireless business in the coming years, the firm's CFO said Monday morning.

Talking at the Deutsche Bank Media, Internet & Telecom Conference in Florida, Fran Shammo, EVP & CFO, made it clear that Verizon Communications Inc. (NYSE: VZ) is expecting video to help drive growth as the smartphone growth boom starts to taper off.

He expects this to start as Verizon's Voice-over-LTE (VoLTE) service begins this year. "There's a lot more video that comes with the LTE feature of voice," he said. (See VoLTE: So Close You Can Hear It and Verizon VoLTE Testing Spotted.)

Shammo points to video calling -- across different handsets and LTE networks -- as one key feature. Then Verizon can layer in capabilities like video voicemail and video address books.

"Whether we'll charge for that or not is a whole different story," Shammo said.

As Shammo sees it, though, this is just the beginning of Verizon's wireless video ambitions. He was clearly big on the possibilities for multicast as Verizon launches the broadcast video network. (See Verizon's 4G Video Freeze Frame.)

"That'll take about a year or two before the chipsets and the handsets get proliferated throughout the marketplace,” Shammo said.

Shammo attempted explained the importance of multicast to a room full of financial folk like this:

"If everybody in this room was to watch the same video today we would probably bring down the cell site because there wouldn't be enough channels in that cell site to deliver the same video to everybody," he told the crowd. "With multicast, it's one channel and one cell site and you can all watch the same video on the same channel."

This could make the user's device a near-continuous 24-hour video channel, Shammo said. This means that the operator could potentially sell hour specials, "pay-per-view events," or even a "World Cup series," he says.

"There's a lot of ability with multicast to really generate additional revenue for the industry," Shammo said.

The CFO isn't expecting smartphone growth to die off just yet, however, noting that Verizon has around 50 million customers that could upgrade to LTE over time. He says Verizon has 25 million customers on "basic phones" and 26 million on 3G.

"If you take this out the next two to three years, I agree with you, the smartphone category will start to slow but some of these other categories will start to take over," Shammo said.

— Dan Jones, Mobile Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
3/23/2014 | 4:19:18 AM
Re : Verizon's Coming Attractions: 4G Video
Will the video broadcast not yet another smart phone feature? I can't understand how it can be differentiated from smart phones. Smart phones growth doesn't seem to be tapering off for now at least. Ever growing figures of smart phone manufacturers actually speak to the contrary even without any further features like video broadcast.
DanJones
50%
50%
DanJones,
User Rank: Blogger
3/20/2014 | 3:00:43 PM
Re: Re : Verizon's Coming Attractions: 4G Video
Yeah, I suspect they haven't exactly nailed down pricing yet myself.
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
3/20/2014 | 2:58:20 PM
Re : Verizon's Coming Attractions: 4G Video
One has to say that Shammo adopted a simple way to explain multicast to finance people who might have found it difficult to grasp otherwise. It is interesting to not though his comments about the pricing of this service. It is a different story altogether but a relevant one. Many people would be watching carefully how they plan the pricing.
KBode
50%
50%
KBode,
User Rank: Light Sabre
3/10/2014 | 3:18:59 PM
Re: Pricing
Yeah, I remain much more interested in VoLTE than video on my phone (as somebody who cut ye olde copper POTS and VOIP years ago).
DanJones
50%
50%
DanJones,
User Rank: Blogger
3/10/2014 | 3:17:01 PM
Re: Pricing
Yeah, I suspect sponsored data will be the model.

 

Interesting too that he didn't talk about VoLTE feature pricing. They breezed past that during the conversation, not too interesting to financial analysts I guess.
KBode
50%
50%
KBode,
User Rank: Light Sabre
3/10/2014 | 3:10:35 PM
Pricing
Should be interesting to see what this is capable, especially in regards to wireless video for live events.

I'm curious how they plan to examine pricing for this service in a way that doesn't upset the net neutrality brigades? I imagine somewhere in his head is something along the lines of AT&T's Sponsored Data effort.
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
T-Mobile CEO Plays Data Traffic Cop
Sarah Thomas, Editorial Operations Director, 8/31/2015
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
CEO Chat With Bill Gates
Steve Saunders, CEO and founder, Light Reading, 8/31/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
The scene: Last Saturday, lunchtime, the interior of a shi-shi-foo-foo eatery in Manhattan's SoHo district.
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?