Light Reading

Verizon Envisions Cheaper VoLTE Subsidies

Sarah Thomas

Verizon Wireless says it's on (its readjusted) track to launch voice-over LTE (VoLTE) next year, and it's expecting handset subsidy prices to fall when the 4G voice technology is mainstream.

Addressing an Oppenheimer conference this week, Verizon CFO Fran Shammo outlined the company's timeline for VoLTE:

When voice is no longer a line item, there's a good chance Verizon will change the pricing for its data-only network. It hasn't said when or whether unlimited data will be gone for good, but Shammo did say handset subsidy prices should fall in three to four years by virtue of "the technology and the manufacturing efficiency of this technology," as well as increasing competition.

"As you get to the end of 2014, we will have our first LTE-only handset," Shammo told the Oppenheimer crowd, according to the Android Authority blog. "When that happens, I then take the CDMA chip out of the handset, and my subsidy will decrease."

However, as the Android Authority aptly points out, Shammo didn't clarify whether he meant that the subsidies Verizon pays will fall, or that the prices its customers pay for devices will fall. It could be both.

Verizon has the largest LTE footprint in the US, but AT&T Inc. (NYSE: T) may beat it to the punch on VoLTE. It plans to turn on 4G voice in its network this year. Neither operator has said whether its service will support only voice and SMS or a full suite of rich communications services at launch. (See: AT&T Plans 4G Voice Launch This Year and Shades of VoLTE.)

— Sarah Reedy, Senior Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Blogger
8/16/2013 | 2:53:34 PM
Re: My subsidy or yours?
Ok, I've been reminded on Twitter that wireless operators rarely pass cost savings on to their customers. Wah wah. So, let's be honest, the "my" meant Verizon. 

What do you think will happen when we have VoLTE-only phones? Higher-priced handsets and data plans? I think no more grandfathered in unlimited plans is a given.
User Rank: Blogger
8/16/2013 | 2:20:52 PM
My subsidy or yours?
It is a little tricky how Shammo worded it that "my subsidy" will go down -- does my mean Verizon or Shammo as the customer? Without the CDMA chip, the phones should cost less, so Verizon is shelling out less to the handset makers, and it can pass those cost savings along to customers. That's the hope, but it'll be awhile before it's comfortable enough with VoLTE to ditch the CDMA chips anyway.
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
The comms industry is rallying to the cause of open, independent interoperability testing.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Documentaries
The Business Case Challenge for NFV

10|7|15   |   03:47   |   (0) comments

Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
LRTV Interviews
JT Offers Some Gigabit Lessons

10|7|15   |   4:08   |   (0) comments

Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
LRTV Interviews
AT&T's Chiosi on the Potential of Open Source

10|6|15   |   06:27   |   (0) comments

AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
LRTV Interviews
Network Security in a Gigabit World

10|6|15   |   05:52   |   (0) comments

Masergy's James Harrison talks about some of the network security and data center issues network operators need to consider as they expand their broadband services portfolios.
LRTV Documentaries
Telefónica: In Search of Virtual Simplicity

10|5|15   |   07:30   |   (0) comments

Francisco-Javier Ramon Salguero, head of Telefónica's NFV initiative, admits virtualization initially means greater complexity, but with the right abstraction layer, it is possible to create a services-driven network architecture. He explains how Telefónica's current trials and initiatives are aimed at doing that, and what his company and other carriers need to ...
LRTV Interviews
Gigabit Europe Takeaways

10|5|15   |   03:47   |   (0) comments

Participants from the inaugural Gigabit Europe event in Munich share their key takeaways from the conference.
Women in Comms Introduction Videos
Intel Urges Women to Take Advantage of Their Seat at the Table

10|5|15   |   4:27   |   (1) comment

Have inclusive and constructive conversations, attach a bigger meaning to your work and get involved in the cause, Intel's Monique Hayward advises women in comms.
LRTV Interviews
BT Updates on Plans

10|2|15   |   03:16   |   (2) comments

Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
Telecom Innovators Video Showcase
Sonus Shakes Up SD-WAN

10|2|15   |   7:22   |   (0) comments

Sonus CTO Kevin Riley sat down with Light Reading to discuss the trajectory of the company, its SDN ambitions and why Sonus is taking a market-disruptive approve to SD-WAN.
LRTV Interviews
CityFibre's Gigabit Vision

10|1|15   |   03:18   |   (1) comment

Mark Collins, director of Strategy & Public Affairs at competitive UK city network operator CityFibre, talks about his company's plans to help build Gigabit Cities.
Telecom Innovators Video Showcase
Automate, Scale & Create With Juniper's vCPE Solution

10|1|15   |   6:34   |   (0) comments

Join Kireeti Kompella, Juniper Networks CTO, and Steve Saunders, Light Reading Founder and CEO, as they discuss Juniper Networks' approach to NFV showcased with a turnkey vCPE solution, which demonstrates how service providers can use automation to rapidly deploy services.
LRTV Interviews
Gigabit Europe: Day 1 Takeaways

9|29|15   |   05:47   |   (5) comments

Light Reading's Ray Le Maistre and Iain Morris sup a beer and discuss some of the key takeaways from the first day of Gigabit Europe 2015.
Upcoming Live Events
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
Communication service providers realize that an ICT transformation is critical to their long-term survival, but most haven't yet committed to making it happen.
Hot Topics
Verizon's Go90 Is Live – Will Anyone Watch?
Mari Silbey, Senior Editor, Cable/Video, 10/1/2015
Eurobites: Dunroamin'
Paul Rainford, Assistant Editor, Europe, 10/2/2015
M&A Speculation Swirls Around Juniper
Ray Le Maistre, Editor-in-chief, 10/6/2015
Cisco's Chambers Rules Out Political Bid
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/6/2015
AlcaLu Execs Lose Out as Nokia Unveils New Top Team
Iain Morris, News Editor, 10/7/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
Cats with Phones
Hold My Calls, Indefinitely Click Here