While some Android users may not consider Windows Phone or BlackBerry 10 as being any serious competition, a Verizon exec has cited that as one of the reasons we may begin seeing lower device subsidies moving forward. That exec is Verizon Communications CFO Fran Shammo and he spoke of lower subsidies coming as a result of increased competition and LTE-only devices.
The comments were coming out of the Deutsche Bank 2013 Media, Internet & Telecom Conference and it looks like these lower subsidies are something that we can expect to see in the next few years. On the subject of competition, Shammo has said he is a believer that “over the next two to three years subsidies will start to decrease just because of the ecosystems.”
The other side here is the LTE-only devices. This basically means that as Verizon begins to make the move to VoLTE (Voice over LTE) they will begin to release devices without support for CDMA. Having a device without CDMA means one less chipset and the potential for a lower subsidy cost. We will have to wait and see exactly what this will mean in terms of what customers can expect to pay, however it is interesting to see this come at a time when we are hearing lower subsidy talk in regards to T-Mobile.
In addition to the potential of lower subsidies, Shammo also spoke of the Share Everything plans and connected tablets. As far as the Share Everything plans go, these were originally launched back in June and as of the end of the fourth quarter — 23 percent of the postpaid customers were using the share plans. It was also said that while they have been seeing greater adoption of mobile hotspot devices, sales of connected tablets have been lower than expected. On that note, without saying whether we think a tablet should be $600, we suspect there are plenty who would never consider paying that for a device that will then cost an additional $10 per month.
[via Fierce Wireless]
How can devices be lower subsidizes, when they aren’t any subsidized at all?
Or would one say, that bank subizise your house, when they give you a loan?
Just a Verizon money–grab. I think it’s great for Tmo and Maybe Att but Verizon and possibly Sprint can easily use it to sap consumers wallets.
Lower subsidies on locked devices. Sounds like a win-win. For Verizon.