We’ve known for a while that carriers have been itching for a chance to ditch smartphone subsidies, but Verizon CFO Fran Shammo now expects that smartphone subsidies will decrease naturally over the next two to three years with no added cost to consumers. FierceWireless reports that Shammo on Monday told the the Deutsche Bank 2013 Media, Internet & Telecom Conference that emerging smartphone platforms such as Windows Phone and BlackBerry 10 will lead to increased competition in the market and bring lower priced phones, which will in turn lead to reduced subsidy costs for carriers. “I’m a believer that over the next two to three years subsidies will start to decrease just because of the ecosystems,” he said. Shammo added that when Verizon moves to Voice over LTE technology later this year, the company will begin to offer phones without CDMA chipsets, which should also reduce the overall costs of devices.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.