Verizon: Shared Data Won't Shake User Revenue

New shared data plans from Verizon Wireless aren't expected to affect wireless user revenues in the second half of the year, the operator's CFO, Fran Shammo, said Thursday.

In June, Verizon became the first major operator in the U.S. to introduce shared data plans. AT&T Inc. (NYSE: T) followed suit this week.

Analysts on Verizon's second-quarter earnings call were keen to know if the operator expects any impact on its average revenue per user (ARPU) from the change in data pricing structure. "We just started in on this," cautioned Shammo. "But to be honest, we don't see any ARPU impact in the third or fourth quarter.

"We are seeing some 3G unlimited customers move to our 4G shared products," the CFO continued, adding that this will be good for overall cash-flow at the company.

Why this matters
ARPU is a key metric for wireless-focused Wall Street types. Any potential changes are bound to be closely watched. Reaction on the Web to shared data plans has not been entirely positive, so analysts are likely to watch for any changes in quarterly subscription numbers for the big two as well.

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— Dan Jones, Site Editor, Light Reading Mobile

joset01 12/5/2012 | 5:27:26 PM
re: Verizon: Shared Data Won't Shake User Revenue

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