Verizon Wireless' forthcoming over-the-the-top mobile video service will support sponsored data, with advertisers subsidizing the cost of consumers' video consumption, according to a senior Verizon executive.
Verizon Communications plans to use a combination of fiber, distributed antenna systems and small cells to densify its wireless network instead of relying solely on spectrum to meet consumers' growing demand for capacity.
Verizon Wireless will employ an advertising-based model for its planned over-the-top mobile video service, which a top executive at the carrier predicted could become a multibillion-dollar business over time. And that's the major reason why Verizon Communications just spent $4.4 billion to buy AOL.
Verizon Wireless is bringing back lower promotional pricing for its More Everything shared data plans. The carrier is offering a 10 GB plan for $80 per month, down from $100, and it re-introduced a 15 GB plan for $100 per month.
Verizon is seeing more of its FiOS customers adopt its symmetrical 75 Mbps Quantum speed tier, a factor that's helped the telco offset an overall decline in first-quarter 2015 wireline revenue.
Verizon says it doesn't need the permission of programmers to implement its new "Custom HD" bundling strategy for its pay-TV service. "We believe we're able to offer these packages under our existing contracts," said Fran Shammo, executive VP and CFO of Verizon, when asked during Tuesday's first-quarter earnings call whether his company had discussed the strategy with programmers prior to deploying it.
Although Verizon Wireless reported improving margins, the carrier added fewer postpaid customers in the period than many financial analysts had expected. The company also lost 3G smartphone and prepaid customers in the quarter. In the past, Verizon executives have said they are willing to part with such customers and not get bogged down in a price war to retain them.
Verizon's recent move to sell off its wireline assets in three markets to Frontier Communications will consolidate its fiber-to-the-premises (FTTP) FiOS service in the Northeast market, one where it will battle aggressive cable competition from Cablevision and a potentially soon-to-be-combined Comcast and Time Warner Cable for consumer broadband dollars.
Verizon Wireless is not that worried that cable MSOs will start eating into the wireless business with Wi-Fi-first business models, according to a senior Verizon executive. At an investor conference today, Verizon Communications CFO Fran Shammo touched on several hot-button issues for Verizon and the wider industry, including new FCC regulations on net neutrality and data roaming.
Longtime telecom executive Tony Melone, Verizon Communications' executive vice president of network, is retiring from the company.