Verizon's Shammo: LTE Multicast opens up new revenue streams

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Verizon Wireless could potentially tap new business models thanks to LTE Multicast technology, though it will take a few years for customers to take advantage of it on a widespread basis, according to a top Verizon executive.

Verizon Communications CFO Fran Shammo said the technology could open up new possibilities for Verizon that don't exist today. Those include the ability to sell content rights in terms of hour-long time slots, pay-per-view events or sporting events like the World Cup. There exists "a lot of ability with Multicast to really generate additional revenue for the industry," he said, but added that "the ecosystem will have to develop here." LTE Multicast, sometimes called LTE Broadcast, uses evolved Multimedia Broadcast Multicast Service (eMBMS). Essentially, the technology allows the same content to be sent to a large number of subscribers at the same time, resulting in a more efficient use of network resources than each user requesting the same content and then having the content unicast to each user. The Verizon CFO also touched on several other hot-button issues at the conference. Notably, he said that Verizon does not want to move away from the traditional US model of offering device subsidies in exchange for customers signing two-year contracts.

Edge is "another option for our customers" that Verizon does not force, Shammo said. "We believe that the subsidy model is an extremely good one," he said. "It's done wonders for us in this industry. I think that to abandon it is a mistake."

[March 10]

Verizon's Shammo: LTE Multicast opens up new revenue streams Verizon: Smartphone subsidies and 2-year contracts aren’t going anywhere (GigaOm)