Handset subsidies will fall when Verizon can offer only dedicated VoLTE smartphones, its CFO says.

Sarah Thomas, Director, Women in Comms

August 16, 2013

2 Min Read
Verizon Envisions Cheaper VoLTE Subsidies

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

About the Author(s)

Sarah Thomas

Director, Women in Comms

Sarah Thomas's love affair with communications began in 2003 when she bought her first cellphone, a pink RAZR, which she duly "bedazzled" with the help of superglue and her dad.

She joined the editorial staff at Light Reading in 2010 and has been covering mobile technologies ever since. Sarah got her start covering telecom in 2007 at Telephony, later Connected Planet, may it rest in peace. Her non-telecom work experience includes a brief foray into public relations at Fleishman-Hillard (her cussin' upset the clients) and a hodge-podge of internships, including spells at Ingram's (Kansas City's business magazine), American Spa magazine (where she was Chief Hot-Tub Correspondent), and the tweens' quiz bible, QuizFest, in NYC.

As Editorial Operations Director, a role she took on in January 2015, Sarah is responsible for the day-to-day management of the non-news content elements on Light Reading.

Sarah received her Bachelor's in Journalism from the University of Missouri-Columbia. She lives in Chicago with her 3DTV, her iPad and a drawer full of smartphone cords.

Away from the world of telecom journalism, Sarah likes to dabble in monster truck racing, becoming part of Team Bigfoot in 2009.

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