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.
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Light Reading sits down at CES with the head of Cisco's service provider video business, Conrad Clemson, to discuss how NFV and cloud security relate to video, the challenge of managing 4K/8K traffic, the global expansion of Netflix and virtual reality.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Documentaries
EANTC Tests Nokia IP Routing & Mobile Gateway VNFs for Real World Deployment

2|9|16   |   5:08   |   (0) comments


Nokia obtained validation of its virtualized router and virtualized mobile gateway capabilities through rigorous testing performed by EANTC. The results set a new industry benchmark for outstanding performance, scalability, resiliency and manageability. Nokia VNFs are ready for telco cloud deployment, so that service providers can accelerate mobile, business and ...
Between the CEOs
CEO Chat With Level 3's Jack Waters

2|8|16   |   26:15   |   (1) comment


Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
LRTV Custom TV
The Composable Telco

2|8|16   |   24:46   |   (0) comments


Heavy Reading's Principal Analyst Caroline Chappell presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
LRTV Custom TV
Join Us at the Digital Operations Transformation Summit

2|4|16   |   03:52   |   (0) comments


The Digital Operations Transformation Summit on February 21, 2016 at the Crowne Plaza Barcelona Fira Centre will bring together 50 senior executives to engage in a unique debate on the opportunities and challenges presented by the transformative evolving digital landscape. RSVP now at events@lightreading.com.
LRTV Custom TV
Making the Test: ADVA Ensemble Connector vs. Open vSwitch

2|4|16   |   01:28   |   (0) comments


Light Reading, in partnership with EANTC, recently tested ADVA's Ensemble Connector, which replaces open vSwitch and offers carrier-grade capability and interoperability. The test results strengthen ADVA's credibility as a provider in the virtualization space.
LRTV Custom TV
Bridging the Gap Between PoCs & Deployment in NFV

2|4|16   |   31:50   |   (0) comments


Charlie Ashton of Wind River presents the keynote at Light Reading's 2020 Vision executive summit in Dublin.
Between the CEOs
CEO Chat With Mike Aquino

2|3|16   |   17:34   |   (0) comments


The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Shades of Ray
MWC: Buckle Up for 5G & the IIoT

2|2|16   |   02:28   |   (0) comments


This year's Mobile World Congress looks set to be a 5G land grab and a chance to get down and dirty with the Industrial Internet of Things (IIoT) – but what will the 5G discussions actually be about?
LRTV Custom TV
Case Study: Building China's Next-Gen TV Networks

2|2|16   |   5:01   |   (0) comments


With over 2 billion viewers worldwide, Shenzhen Media Group is one of China's largest content producers. By partnering with Huawei and Sobey, SZMG was able to modernize media operations with the Converged News Center, a production studio that is a model for next-generation workflows.
LRTV Custom TV
Quad Channel Modulator Driver with 46 Gbaud Capability from MACOM

1|28|16   |     |   (0) comments


MACOM's MAOM-003427 is the industry's first surface-mount modulator driver with 46 Gbaud capability to support next generation 200G and 400G applications.
LRTV Custom TV
Video Infographic: Validating Cisco's NFV Infrastructure

1|26|16   |   02:24   |   (1) comment


We all know that the network of the future will be virtual, but when will virtual become a reality? This video infographic covers the four key areas in which Light Reading, in partnership with EANTC, tested Cisco's NFV infrastructure: performance, reliability, multi-service capabilities and single pane of glass management.

For the full report, see

Between the CEOs
CEO Chat With Phil McKinney, CableLabs

1|22|16   |   13:36   |   (1) comment


At CES in Las Vegas, we met with Phil McKinney, CEO of CableLabs. Phil provides an update on the rollout of DOCSIS 3.1, his views on the future of open source and how consumer interest in virtual reality could affect network traffic.
Upcoming Live Events
March 10, 2016, The Cable Center, Denver, CO
April 5, 2016, The Ritz Carlton, Charlotte, NC
May 23, 2016, Austin, TX
May 24-25, 2016, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Google's 5G Radio Ambitions Are Expanding
Dan Jones, Mobile Editor, 2/5/2016
Cincinnati Bell Joins Weight Watchers Club
Alan Breznick, Cable/Video Practice Leader, 2/5/2016
Yahoo & Verizon Sitting in a Tree...
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 2/8/2016
Vodafone: Flexible Work Policies Boost Profits
Sarah Thomas, Editorial Operations Director, 2/8/2016
It's Time to Integrate OTT Video
Alan Breznick, Cable/Video Practice Leader, 2/8/2016
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Animals with Phones
Retro Is the Way to Be Click Here
Some animals are too cute for smartphones.
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and G.fast for copper plant evolution and the various deployment possibilities for FTTH/B.