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Verizon may sell LTE-only phones starting 2014 and begin reducing subsidies

Posted: , by Michael H.

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Verizon may sell LTE-only phones starting 2014 and begin reducing subsidies
It sounds like there may be some big changes in the works for Verizon. At Deutsche Bank’s Media, Internet, and Telecom conference, Verizon's chief financial officer Fran Shammo said that there are plans for the carrier to offer LTE-only phones starting in 2014, and that change may also see the beginning of Verizon reducing subsidies on devices.

The idea is that Verizon is expecting to transition all voice calls to Voice over LTE (VoLTE) by the end of this year, and once that is done, the CDMA hardware inside phones will be unnecessary. Verizon would still maintain the CDMA network, but most of the company's resources would be put towards LTE. So, Verizon could remove the unnecessary CDMA hardware and sell LTE-only devices beginning in late 2014. This move could ultimately reduce subsidies over the next two to three years.

Verizon has vocally supported the idea of ending subsidies before, which would lead to customers having to pay full price for devices. Of course, normally when a company makes a move to do away with subsidies, like T-Mobile, monthly plans would become cheaper as a result. But, we have yet to heard that side of the plan from Verizon.

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posted on 04 Mar 2013, 20:23 9

1. jcarrigan (unregistered)


THATS IT! IM F***ING LEAVING VERIZON SH*T WIRELESS!!!!!! All they ever care about is making as much money as possible even if it means screwing their customers over! Most consistant coverage in the country doesnt mean sh*t when a Verizon cell phone bill is more then people's rent or car payments!!!!! I dont care if i lose my signal everywhere i go on t-mobile, im swithcing!

posted on 04 Mar 2013, 20:28 4

3. nastynaps (Posts: 93; Member since: 16 Aug 2011)


The article seems to point to the fact that T-Mobile already does this. Doesn't switching to them kind of defeat the purpose?

posted on 04 Mar 2013, 20:31 10

5. 14545 (Posts: 1052; Member since: 22 Nov 2011)


No, Tmo gives discounts on monthly service in exchange for ditching the subsidies. Verizon will charge full price and keep their rates the same. It's BS like this that is causing me to switch.

posted on 04 Mar 2013, 20:45 8

9. Sparhawk (Posts: 75; Member since: 10 Mar 2012)


@14545: Oh, so you know what VZW is going to do, even though they haven't announced it? Oh great oracle 14545, please give me this week's lottery numbers.

The article clearly stats "Of course, normally when a company makes a move to do away with subsidies, like T-Mobile, monthly plans would become cheaper as a result. But, we have yet to heard that side of the plan from Verizon."

This doesn't mean VZW isn't going to adjust their pricing. At least the author of the article is honest enough (unlike you) to state they don't know how VZW would hancle it.

posted on 04 Mar 2013, 20:48

12. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Exactly.

posted on 04 Mar 2013, 21:01 3

17. 14545 (Posts: 1052; Member since: 22 Nov 2011)


Why would verizon? They milk every last dime they can, so why would they lower their service pricing and do away with subsidies? It would just be one more step to them being just a dumb pipe, so of course they won't do that. They are looking to maximize ROI, so nothing they have ever done in the past would give me any indication that verizon would do a "value" plan like Tmo.

posted on 04 Mar 2013, 21:43 3

22. 9thWonderful (Posts: 230; Member since: 24 Jan 2013)


@14545 - it use to be $150 for two basic phones on just a unlimited talk/text plan. if wanted two smartphones w/internet plus use those phones w/hotspot you would be looking at about $250. now you can get that same plan w/two smart phones both w/hotspot built in for $150. thats $100 cheaper than what it use to be for people who dont live on netflix, hulu plus & multiplayer. why wouldn't this be an indication that prices could get lower at Verizon? for someone who is so anti-Verizon you sure don't know much about the company you hate. you want the "value" plans but don't complain when you are getting "value" service.

posted on 04 Mar 2013, 21:52

25. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


He must also dont realize that the Share Plans actually do save some ppl money. I already hade unlimited talk n text. It would save me about $80 to $100. I would have to give up unlimited data tho.

posted on 04 Mar 2013, 22:03 5

27. 14545 (Posts: 1052; Member since: 22 Nov 2011)


Yes, it saves .01% money. The average customer it costs money. My fiancee never uses her phone and even she went from 500 mb a month to 1.5 just from getting an LTE phone. I don't know what she does differently, but when her usage tripled I have to question whether or not anyone can actually save money on the share plans. Between the two of us, we use about 3-5 gb a month, and I don't use my phone for any multimedia anymore other than streaming music from the google Music app. That is what I would call excessive limits. It's funny to me that in the early days of 3g they defined heavy usage as 5 gb a month on older less efficient technology, now 2 gb is "excessive" on newer much more efficient technology. What gives?

posted on 04 Mar 2013, 21:57 3

26. 14545 (Posts: 1052; Member since: 22 Nov 2011)


I have 1 "dumbphone" and 2 smart phones on a 1400 min unlimited text plan. With two unlimited data packages, and my bill is north of 200. When I had just two dumbphones, my bill was 100-120. Verizon hasn't lowered it's prices on anything since I have been a customer. I joined verizon in 07, so yes, I know nothing about the company. If I switched to a "share" plan it would cost me an extra 30-40 dollars a month to feel comfortable about my varying usage. Also, in the last few years I have had my NE2, and other perks yanked out from under me. So yes, I'm a tiny bit irritated by VZW at this point. Also, the same time I lost many of my "perks", it just happened to coincide with VZW getting the iPhone. Now that they have the iPhone, they no longer try to compete for business like they used to. It is also evident in talking with their CS, as their CS is nothing like it used to be. Heck, I've only had one friendly one in the last 8 times I have called. AND THE REASON I WAS CALLING WAS A MAJOR SCREW UP ON VZW's PART. One where I was charged full price for two rezounds that I SENT BACK and had tracking numbers to prove so. So yes, I am "anti" verizon now, but with a good reason. Back before christmas it took me actually reading off my card number to buy out my contracts before they would even do anything to fix their screw up.

posted on 04 Mar 2013, 22:40

30. gmracer1 (Posts: 646; Member since: 28 Dec 2012)


So you have an iPhone? I think we now know enough about you/what kind of person you are :-)

posted on 04 Mar 2013, 22:54 1

31. 14545 (Posts: 1052; Member since: 22 Nov 2011)


I guess one can't expect reading comprehension skills out of a GM fan. No, I don't have an iphone, I SAID that I LOST MOST OF MY PERKS about the TIME that VZW got the IPHONE. Reading is FuNdAmEeNtAl.

posted on 04 Mar 2013, 23:02 1

32. Whateverman (Posts: 3187; Member since: 17 May 2009)


Same for me 14545! Everything you said is 100% true. Perks disappearing around the time the iPhone came, true. Share everything costing more, true. CS not being the same as it was just a few years back, very true! Just waiting to make the switch myself. Maybe the service won't be the same, but I would save $600 a year going with T-Mobile. And in my area, their service is pretty good. I am so looking forward to ditching VZW I can almost taste it!

posted on 05 Mar 2013, 21:55

44. 9thWonderful (Posts: 230; Member since: 24 Jan 2013)


It's $40 per smart phone...$30 for a "dumb" phone as you put it $80 for 6GB of data which would accommodate your varying 3-5GB of data which comes out to about 196 w/your discount ($223 if you have high-tier insurance on 2 iPhones & a basic) vs. $217 if you had the same set up w/insurance on your current 1400 minute plan. A $6 difference. Where's the $30-40 more for the new shared plans coming into play at sir? So your NE2 credit went away, who cares? I was w/Sprint before the whole "Unlimited Everything" craze hit and NEVER got any extra money off aside from the regular upgrade price. Things change...stop looking to get something nothing.

posted on 05 Mar 2013, 17:48

42. jcarrigan (unregistered)


okay well i would go to at&t sibnce they pretty much have every single phone that comes out in the US but there just as expensive as verizon.

posted on 04 Mar 2013, 21:20

19. ajac09 (Posts: 1336; Member since: 30 Sep 2009)


wow did you not even read the article?

posted on 04 Mar 2013, 21:44 1

23. KingKurogiii (Posts: 5536; Member since: 23 Oct 2011)


now just what has Verizon done here to offend you so much?
i think this is a good thing.

posted on 05 Mar 2013, 03:24 1

37. ayephoner (Posts: 833; Member since: 09 Jun 2009)


the idea that they would do away with subsidized phones, but not change their prices is pretty offensive. the cost of a cheap phone is already built into their plan pricing.

i think their latest 'share everything' plans are a cash grab from their heavier users. they know they will have to offer unlimited data again, but could make more money going away from it for a few years.

verizon is an awful company. they put profit way ahead of customer retention. that's why ive already left them. my bill is almost half with tmobile. i emphatically recommend switching.

posted on 05 Mar 2013, 18:28

43. KingKurogiii (Posts: 5536; Member since: 23 Oct 2011)


has Verizon said they're not going to change their plan pricing schemes if they do away with subsidies? you're all getting too ahead of yourselves.

well apparently the new tiered shared data plans have been well received from the majority of their customers. idc about it myself. all four lines of my family data plan still have unlimited data.

you get what you pay for. it's not like Verizon hoards money, they obviously invest into having a great, reliable network which is obviously worth the extra money for most.

posted on 04 Mar 2013, 20:27 2

2. ZeroCide (Posts: 683; Member since: 09 Jan 2013)


Hmmm. I thought this would be good news for Verizon customers.

posted on 04 Mar 2013, 20:30

4. Mr.Mr.Upgrade (Posts: 425; Member since: 30 Aug 2011)


Lol what a total wuss u are... run to T-Mobile... sprint
..are who every else....the fact remains...if the other carriers don't step their game up.....Verizon will be allowed to do what they want....

posted on 04 Mar 2013, 20:35 3

6. 14545 (Posts: 1052; Member since: 22 Nov 2011)


They're playing a very risky game. Cell phones are a luxury, smartphones anyway, and I know I won't pay a dime more than I already do for service. So let them try and do away with subsidies to the "average" customer, then when it bites Fran dumb@$$ in the @SS, verizon will quickly retreat. Just like they did with the 2 dollar charge for paying your bill. Verizon has already pissed off quite a few people that pay a good penny a month for service, they better cool their jets while they still can.

posted on 04 Mar 2013, 20:47 4

11. speckledapple (Posts: 877; Member since: 29 Sep 2011)


Agreed. And the thing is that companies like Google seem to be receptive to selling phones without carriers need and if there becomes a focus on a more userfriendly amount of spectrum dedicated to devices that are better subsidized by the company that makes them, you could finally see a shift away from carriers. The day I no longer have to depend on the monopoly of a few over powerful carriers would be a great day.

posted on 04 Mar 2013, 20:39 1

7. WakaFlakaD (Posts: 359; Member since: 30 Apr 2011)


Sounds like the future with the all LTE phones

posted on 04 Mar 2013, 20:44 5

8. speckledapple (Posts: 877; Member since: 29 Sep 2011)


Its fine. If they want to reduce the subsidies I am cool with that. But, if they keep the plans running at the same high cost, they can pretty much be happy to lose me as a customer as I move on to someone else who dont try to reduce my pocketbook more while increasing theirs.

posted on 04 Mar 2013, 20:46 2

10. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Am I missing something? Talk about lower subsidies, LTE only phones, lower plans?

All this is rumor...but still.... its a rumor...

An LTE only phone should have a more stable phone and data connection, in theory. I have a feeling Verizon would keep CDMA for their pre paid phones.

What are ppl upset about? I welcome VoLTE. The plan prices are gonna be interestig tho. Is that done on data? Does VoLTE uses data?

My kids mother has Boost, has a EVO Design 4G. And the barely there WiMax is her best data connection. Ppl dont like the faster data speeds?

posted on 04 Mar 2013, 20:49 2

13. speckledapple (Posts: 877; Member since: 29 Sep 2011)


I am all for the new tech as well but it better come with a shift in the plan prices to a lower and much more cost efficient way that essentially turns Verizon into a gateway for service and that is it.

posted on 04 Mar 2013, 20:50 3

14. 14545 (Posts: 1052; Member since: 22 Nov 2011)


I have never wanted to punch a CxO in the nuts before, but Fran Shamalangadingdong definitely makes me want to. I'm all for a business rights, but fran is just a douche that deserves it.

posted on 04 Mar 2013, 23:11 1

33. Whateverman (Posts: 3187; Member since: 17 May 2009)


Lmao! I knew this dude was bad news when they lied to us about the "grandfathered" unlimited plans. And for all of you who like to say VZW isn't forcing you to change plans, save it! That's exactly what they're doing, so that's exactly what I'm going to do. I'm gonna change my plan, my phones, and especially the carrier logo on my phone.

posted on 05 Mar 2013, 00:33 1

34. corporateJP (Posts: 1499; Member since: 28 Nov 2009)


Church.

posted on 04 Mar 2013, 20:53 3

15. Derekjeter (Posts: 168; Member since: 27 Oct 2011)


This should have happened years ago. Screw all these people that want free s**t all the time. I would rather pay 600 for a phone than 2500 over two years. Forget all these contracts.

posted on 04 Mar 2013, 21:08 3

18. 14545 (Posts: 1052; Member since: 22 Nov 2011)


I agree.....IF they give a break on service. I would rather pay for JUST SERVICE any day of the week and pay up front for the phone. Also, it would help it to hold it's value a tiny bit better. But I don't see verizon doing this based on past actions.

posted on 04 Mar 2013, 21:35 2

21. rsxl5 (Posts: 65; Member since: 05 Sep 2012)


Agreed :)

It was always something that amazed me while talking with Americans that they all were surprised that I paid full amount for a mobile up front (so much money).

What they don't see is that I do buy a mobile at a certain price but I do have a cheaper plan ; so, overall money spend within 2 years period is lower (not mentioning being tight to a contract).

There is no free stuff in the world :)

posted on 04 Mar 2013, 22:07 3

28. 14545 (Posts: 1052; Member since: 22 Nov 2011)


I would never have a problem paying full price for a phone if it was carrier unlocked like yours. If I could tell verizon to piss off and then hop over to att/sprint/etc, (obviously there are small technology hurdles to overcome, but all phones could be offered with GSM/CDMA/LTE capability) then I wouldn't get mad about paying full price for a phone. But even if I pay full price for a phone in america we are locked to a carrier unless we sell the phone. That I have an issue with.

posted on 04 Mar 2013, 22:25

29. jdubis (Posts: 12; Member since: 15 Jan 2012)


Just so you know all Verizon lte phones are unlocked right out the box.

posted on 04 Mar 2013, 21:00 2

16. scsa852k (Posts: 272; Member since: 16 Oct 2012)


T-Mo's dropping the rate plan price with the end of subsidy.
I highly doubt if Verizon would do the same.

posted on 04 Mar 2013, 21:32

20. erikhdz36 (Posts: 3; Member since: 04 Mar 2013)


If lte means no more. 3g speeds ..then go ahead ..bring it on ..

posted on 04 Mar 2013, 21:45 3

24. 9thWonderful (Posts: 230; Member since: 24 Jan 2013)


I'm more interested in how this will affect phone pricing...

posted on 05 Mar 2013, 00:45

35. corporateJP (Posts: 1499; Member since: 28 Nov 2009)


It is not Verizon's M.O. to lose money.

I'd bet the ranch that the plans will take a slight drop, if any, and you'll be stuck paying alot for your phone with no relief on the bill side.

Keep preaching about "premium" service, but where I'm at, AT&T has caught up to (and in some places outright surpassed) Verizon. The only thing this means is that Straight Talk with an AT&T Sim will save hundreds of dollars per year for many people. Verizon might be huge, but so was the Titanic, and we know how that ends.

posted on 05 Mar 2013, 01:31

36. babyboy14622 (Posts: 22; Member since: 05 Jul 2012)


i don't think anyone would want to pay full retail for a device. their is always ebay or craigslist.

posted on 05 Mar 2013, 05:23 1

38. longhairbilly (Posts: 61; Member since: 23 Aug 2010)


Sweet! I can't wait for Verizon to lower their costs and pass the savings on to me!

/sarcasm

posted on 05 Mar 2013, 10:54 1

39. Gcombs (Posts: 133; Member since: 22 Aug 2011)


This falls into the line that Verizon would sell you their service and have other retailers sell the customers the devices. It is cheaper for Verizon to have other retailers selling their phones versus having their own employees they have to pay for including the insurance for their employees. If we start to see some Verizon corporate stores starting to close that may be the indication of what's happening.

posted on 05 Mar 2013, 14:36 2

40. Allen3697 (Posts: 86; Member since: 26 Mar 2012)


They better lower the monthly prices then

posted on 05 Mar 2013, 15:06 1

41. JunitoNH (Posts: 832; Member since: 15 Feb 2012)


Yeah.........Verizon dropping prices, ok. Maybe by two dollars, then turn around and charge an extra two dollars for some FCC and/or miscellaneous charge.

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