The Freeland File
Global Market Data
Tales from the Trail
Lucy P. Marcus
David Cay Johnston
The Great Debate
Jack & Suzy Welch
Macro & Markets
Lipper Awards 2012
Personal Finance Video
Paralysis patient tastes freedom through thought control
Groundbreaking new research is allowing quadriplegics to control objects with a robotic arm and the power of their thoughts. People who have lost the use of their limbs can perform basic functions by manipulating the technology with their minds, according to the U.S. study. Video
Stem cell therapy credited with saving girl's life
Exclusive: ECB stops operations with some Greek banks
Apple readies iPhone with bigger screen: sources
Facebook IPO triggers retail investor craze
Lawyers for ex-Senator John Edwards rest case
Samsung loses $10 billion market value on Apple order report
Romney apologizes for bullying incident at school
Germany’s Merkel dealt heavy blow in state vote
Weary warriors favor Obama
A look at the UK’s most beautiful face
Thu, May 10 2012
Drought blamed for fall of Mayan civilization
Tue, May 15 2012
'Mother killed kids': police
Tue, May 15 2012
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Nigeria's oil thieves
Nigeria is Africa's largest crude oil exporter but its production capacity has been slashed by thieves drilling into pipelines. Slideshow
Life in an Amazon tribe
A look at life in the Brazilian Amazon basin with the Yawalapiti tribe. Slideshow
Verizon sees revenue increase from shared plans
MetroPCS' shares soar on T-Mobile merger talk
Wed, May 9 2012
AT&T making big investment in home monitoring
Mon, May 7 2012
Analysis & Opinion
Should we ditch the idea of privacy?
Iran offers Egypt limited lesson in subsidy reform
A Verizon logo is seen during the International CTIA WIRELESS Conference & Exposition in New Orleans, Louisiana May 9, 2012.
Credit: Reuters/Sean Gardner
NEW YORK |
Wed May 16, 2012 3:02pm EDT
NEW YORK (Reuters) - Verizon Wireless should see an increase in data revenue after it offers new shared data plans this summer, according to a top executive for parent company Verizon Communications Inc.
Verizon's intends to allow customers to share their data allowance among different devices, unlike their current offerings, where they have to sign up for a separate data plan for every device connected to the wireless operator's network.
Verizon Chief Financial Officer Fran Shammo said he expects the new offering to encourage more customers to connect more devices to its network. As a result, he expects them to sign up for higher-tier data services that come with higher prices.
"We're fairly confident we'll start to see people uptick in the tiers, which is where we'll see the revenue accretion." Shammo said in a webcast of an investor conference.
Once the shared plans are available, Shammo said he would change how he reports wireless revenue. Instead of reporting average revenue per user, Shammo said the company would start reporting average revenue per account.
One area where carriers like Verizon have been missing out is tablet computers as consumers have been hesitant to pay the extra cost of connecting their tablet to the cellular network. But Shammo said this may change with shared data plans.
Another sticking point is that operators like Verizon do not subsidize tablet computers. Shammo said this would not change any time soon.
"We're holding pretty strong with the model of no subsidies on these devices," the executive said.
The high price of devices such as the Apple Inc iPhone have hurt operator margins as Verizon and its rivals pay hefty subsidies for the device so it can offer the phones at a discount to customers who sign a two-year contract.
But Shammo said he is looking closely at moves by European operators to back off on subsidizing smartphones.
"I think the industry is going to look hard at these types of models going forward," he said.
Verizon Wireless is a venture of Verizon Communications and Vodafone Group Plc.
(This version of the story fixes spelling of "data" in paragraph one)
(Reporting by Sinead Carew)
Related Quotes and News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Be the first to comment on reuters.com.
Add yours using the box above.
Back to top
New York Legal
Support & Contact
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.