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Verizon CEO: TV Cord Cutters Real, Verizon iPhone Not
Also hints at new wireless data pricing yet again...
by Karl Bode 01:47PM Thursday Sep 23 2010
Talking at the Goldman Sachs media conference in New York, Verizon CEO Ivan Seidenberg covered a lot of topics, including the fact that TV cord cutters are a real phenomenon, and that bundled services (triple, quadruple play) are going to be less popular moving forward -- since it's all just data anyway. Unlike many TV industry counterparts who believe Internet video's threat to cable is largely-hallucinatory in nature, Seidenberg seems to see and respect the challenge Internet video will eventually pose to the traditional TV model:
quote:
Click for full size
"Young people are pretty smart. They're not going to pay for something they don't need to," he said. "Over the top is going to be a pretty big issue for cable." "We take the over the top issue with video very seriously," he said. "I think cable has some life left in its model...but that it is going to get disintermediated over the next several years."
Like a constantly-beating drum Verizon has repeatedly hinted over the last year that they like AT&T's low-cap-and-high-overage wireless pricing model, and that such a model will likely arrive when Verizon launches their faster LTE network in December. Seidenberg kept the drum beat going, again hinting that metered wireless broadband looms:
quote:
"We're going to feather in our pricing over the next couple of months as we introduce new products, new services and try to get that value proposition to fit the added excitement and added capabilities that we're going to offer."
Seidenberg also shot down the endless rumors of a Verizon iPhone launch in January, saying that Verizon won't be bringing the iPhone to their network anytime soon. The CEO suggested that were Apple to make a non-exclusive LTE-based iPhone they'd love to carry it, but that Apple would have to "get with the program" at some point.

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br0adbanddoc

join:2001-12-31
Wilkes Barre, PA

iPhone Rumor

Hopefully we can put the iPhone rumor stories to bed now...

Nezmo
The name's Bond. James Bond.
Premium,MVM
join:2004-11-10
Coppell, TX
kudos:1

Re: iPhone Rumor

said by br0adbanddoc:

Hopefully we can put the iPhone rumor stories to bed now...
Until Bloomberg posts another rumor.
--
My Gallery
Formerly Nezmo
br0adbanddoc

join:2001-12-31
Wilkes Barre, PA

Re: iPhone Rumor

Psst... I just heard that the iPhone is going to be on Verizon's network in March... =)

NOCTech75
Premium
join:2009-06-29
Marietta, GA
Reviews:
·Comcast

Re: iPhone Rumor

said by br0adbanddoc:

Psst... I just heard that the iPhone is going to be on Verizon's network in March... =)
Feb 30th is the launch day.
ashworth7

join:2001-10-06
Pittsburgh, PA
Apple has always had proprietary equipment why would they change with the iPhone ??
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

1 recommendation

said by br0adbanddoc:

Hopefully we can put the iPhone rumor stories to bed now...
Yup! ... because another CEO of a trustworthy company has made another statement too.

These guys know what they're doing too.. the one thing you said I agree with that the "rumors" need to get put to bed - because they are just that.. AND, there really is no need to know the future; we live in the now anyway. If the iPhone comes, it comes.. if it don't, it don't.

People spend way too much time trying to pin point down the future, sometimes to the exact date, prices, policies, etc.. why? .. why when they don't exist in the now.

If, and when, the iPhone comes to ANOTHER CARRIER (there are more than just Verizon obviously) then maybe it would be the time to talk about it, if that's even necessary.

But, one thing for sure, just because a CEO said it doesn't always mean they're telling the truth either.. sometimes they like to play mind games in the media to also keep their competitors in the guess too.. it USED to be that having information known in advance was a good thing and was done often.. now, no one wants anyone to know until the day is upon us as it takes the competition by surprise.

But really, in short - who really cares.. if it happens, it happens.

JustACoward

@verizon.net
quote:
Hopefully we can put the iPhone rumor stories to bed now...
Hell no! What I heard him say was that Apple is building a LTE version that Verizon will be happy to carry.
towerdave

join:2002-01-16
O Fallon, IL
said by br0adbanddoc:

Hopefully we can put the iPhone rumor stories to bed now...
Everyone knows that Jobs doesn't like anyone stealing his thunder, and if Verizon wants the iPhone, they have to play ball with Jobs and Apple, so the CEO isn't going to say anything BUT what he said, or Jobs will kill the deal. I'm not saying there is a deal, but if there is, Jobs is the one that will announce it, nobody else.

TD

N3OGH
Yo Soy Col. "Bat" Guano
Premium
join:2003-11-11
Philly burbs
kudos:2
Why? It makes for so much fodder for Internet message board banter.
--
Petty people are disproportionally corrupted by petty power
travelguy

join:1999-09-03
Santa Fe, NM

Billing for Data Not Nirvana

The problem with billing for data is that in its simplest form, does not allow for segmented billing by value. That's the holy grail of the MBA finance types that run public companies these days.

What Verizon and the others would like to do is to bill you one rate for "less important" data and another rate for "more important" data. Think the model that cable uses with different tiers and movie channels.

AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1

Over the top...

I think we see a big push for metered billing on a neutral landscape.

Or an un-nutral landscape with unlimited usage but the sender and receiver getting billed.
--
standard disclaimers apply.
talz13

join:2006-03-15
Avon, OH

Re: Over the top...

said by AVD:

Or an un-nutral landscape with unlimited usage but the sender and receiver getting billed.
Don't the sender and receiver already pay for transmission of requested content?

NOCMan
MadMacHatter
Premium
join:2004-09-30
Colorado Springs, CO

Re: Over the top...

Yes but the problem in the race to the bottom price for large circuits that carry content from content providers, the telco's find that they can not really squeeze more money out each quarter on a unlimited plan. Which in turn means investors will punish the company for not making more money year over year.

Currently if Google buys a Ten Gigabit circuit, the pay monthly fees for the circuit and they also have to pay for what goes across it.

Now they want to apply the same model to consumers, make them pay a fee to have the service, and another fee to just use it.
Sammer

join:2005-12-22
Canonsburg, PA

One huge threat to cord cutting!

While the success of Netflix, Redbox, and sales of TV shows on DVD suggest some cord cutting is already happening it faces one huge threat. The low cap, high overage charge model of ISP pricing already favored by AT&T Mobility and apparently desired by Verizon Wireless can prevent most internet video from being successful.
xenophon

join:2007-09-17

Re: One huge threat to cord cutting!

I was a cord cutter, have been posting about it, but just got an offer from TWC for $30/month for a year with no contract (includes HD and DVR), it goes to $70/month after that. I went for it and will simply cancel in a year, waiting for them to make another offer.

The bottom line is that TWC had to drop the price quite a bit to keep me.

TSWYO
Premium
join:2003-05-03
Cheyenne, WY

Re: One huge threat to cord cutting!

I did the same thing. I went over six months with no cable, just signed up about a month ago. I get their entire digital lineup with HBO and Showtime and HD DVR for $45 a month.

If they can offer that as a promo, they can keep it at that price and still make a profit.
xenophon

join:2007-09-17

Re: One huge threat to cord cutting!

Yeah, forgot.. I'm also getting free HBO/Sho for 3 months. They made an offer a couple weeks earlier and I said no go and explained I'm doing Netflix/Hulu/Clearwire. A couple weeks later they came back with a better deal. Still keeping Clearwire unless they can bundle a better deal with cable modem.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3
They have to remember that a lot of people aren't cutting the cord because they have other things to do with their time or that there are other video options available out there.. MANY people are cutting the cord because they simply can't afford the price tag of this service..

So I laugh at Ivan when he talks about "value" because he, who has millions in the bank, has no clue what value of the common man is.

While they KNOW the phrase "the economy is weak".. I think they don't really understand what that means to people - or they'd find a way to survive on less money themselves, for one, stop raising the price.. and realize that if they DID cut the prices, they'd see less HIGHER paying customers but far more smaller paying customers.. ie: quantity vs quality customers.

They'll never get it - they're obviously "not as smart as young people" are.. so they'll just find new ways to get more money out of the remaining customers willing to pay the higher and higher bills, the same was as a politician will continue to find more ways to tax more money out of the remaining work force in order to prop up those who aren't working.

Anyone else see a trend/pattern here?

They really CAN drop the prices, some.. it will cause the industry to slow down a little, which to be honest, is fine! The entire country NEEDS to slow down anyway.. it's way too inflated in MANY areas and can't sustain the growth path it was on.. we need to go through some period of devaluation and come back to reality.

I wonder just how many people will subscribe to, and "find value" in basic cable when the price hits the "low low price of $99.99 a month!" ON the trend/path they're all heading, that should be with in about 10 years.
WhatNow
Premium
join:2009-05-06
Charlotte, NC

Re: One huge threat to cord cutting!

This country will follow the same path Japan did so expect at least 8 to 10 years of what we have now. We are about 10 years behind their economic path so if you want to see the future look at Japan's past for the last 10 years.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: One huge threat to cord cutting!

said by WhatNow:

This country will follow the same path Japan did so expect at least 8 to 10 years of what we have now. We are about 10 years behind their economic path so if you want to see the future look at Japan's past for the last 10 years.
Actually, I'm too busy looking at the past 10 years of the California economy to see the ultimate future of the United States.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by xenophon:

I was a cord cutter, have been posting about it, but just got an offer from TWC for $30/month for a year with no contract (includes HD and DVR), it goes to $70/month after that. I went for it and will simply cancel in a year, waiting for them to make another offer.

The bottom line is that TWC had to drop the price quite a bit to keep me.
What tier? broadcast basic? *yawn*
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xenophon

join:2007-09-17

Re: One huge threat to cord cutting!

No, it's the $70 package for $30, which includes Discovery/Natgeo/History and about 90 HD channels, 3 months HBO/Sho and HD DVR. Not sure about the obscure sports channels, which I'm not into.

VladDracula

@comcast.com

CDMA iPhone

So now we know, the iPhone is not going to VZW, it is going to Sprint
puck0114

join:2005-12-24
Portland, OR

Re: CDMA iPhone

Nah, it's going to China.

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
kudos:1

Re: CDMA iPhone

lol its made in china...lmfao
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
and i've been saying that all along.
pimpinparker

join:2005-06-14
North Baltimore, OH
I'd consider switching to Sprint from Verizon for the iPhone.

SLD
Premium
join:2002-04-17
San Francisco, CA

Pretty smart?!?

"Young people are pretty smart."
LOL, no, I don't condsend....
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: Pretty smart?!?

heh.. you picked up on that one too huh?
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

1 edit

I don't trust this guy, his lips are moving..

Here's the issue - Ivan says nothing that interests me personally.. when I read (virtually hear) his words, all I hear are a bunch of hoots and clicks coming from his mouth.

Verizon CEO Seidenberg FORGETS that he IS also a cable player as well... so for him to sit back and talk about "the cable industry".. well, didn't he just get done building out Verizon to be more like cable? (as cable has more like phone?) So basically they're one like the other. They always sit back and talk about the other like they're some kind of different breed - they're not.

Verizon, if they see internet video as a real issue, he wouldn't necessarily look towards stuffing his data pipes with it either. Last I checked, that man still has a crap load of DSL.. but he love sit high on his small pile of fiber optics thinking he's king of the world with Fios. (he's not)

If they were worried about competing, in the now, with internet video, they (cable and phone) could EASILY put a much quicker end to that industry by selling their video more on the ala cart basis AND raising the flat rate price of their internet services, where the speeds can command it. (ie: If you buy into ala cart video, there is no bundle rate for internet)

They also can't be running on the notion that they're simply going to meter bill the internet BECAUSE of internet video - that's insane! They have to come up with a couple billing models that run parallel to each other.. they can't JUST raise the price of the internet, just because.

They are right - it's the younger generation that will change the landscape of video, for a few reasons. For one, the income levels of younger people are always slipping as the generations move on; the fact is they make less and less and less than the ones before. They also have different needs. They'd rather be plugged into meaningless social networks and watch babies crying and biting fingers on YouTube for a quick laugh.. today's youth are more likely on the go, and not sitting in front of a TV during Prime Time.. many also are just fine "following" their favorite reality shows and then seeing them later on the internet.. so yea, that is real and that's what's coming.

If ANY video provider wants to change this up and make it work, they need to think about it now. It IS time for developing new ways of selling linear video - be it ala cart OR MUCH smaller groups of channels in bundles like the "Sports channels" or "Learning/Education" package.. "music packages".. or another way would be my vendor.. "The Discover networks".. etc.

They need to stop thinking that a million channels is the "thing" these days.. they can get rid of the 14 HBO channels, have 1, maybe 2 for events and live stuff, and put the rest "OnDemand" - afterall they built out a multi-million dollar model for that delivery - USE IT!

I do like Ivan's patronizing statement though.. "Young people are pretty smart".. the ONLY reason he used that line and those words came flying out past his lips like his own vomit, is to use that as a dig against cable; tearing cable down to make himself look better. Well, it didn't work with me at least. I still think Ivan is an idiot.

But still, he keeps talking about metered billing.. he's going to talk about tier pricing with caps and overage when "LTE" comes out, yet he also talks about the competition at home as well..

This article is just all over the place - to be honest, I don't think Ivan really knows what he wants to do, when he wants to do it, and how he's going to pull it off.

Every one of these players these days all 'talk' a big story and then sit back and wait for SOMEONE ELSE to make the first move so they can react with something SLIGHTLY less crappy and be the hero of the day..

They also need to learn that Linear TV isn't dead nor will it be for a LONG time to come... it's just the way they're presenting and forcing it on to people, the "model" which is dying quickly.

As long as there are mommy and daddy types having babies, there were always be the need for cable in the home. So long as the people who are 30-35 and above living out their lives, there will be the need for cable in the home (or satellite, etc)

Ivan is just, mostly, talking out his back door and really hasn't said anything that was worth putting in the press. The thing I most notice about this is how he somehow is elevating himself to some sort of status that is better or higher than others.. Anyone got a mirror for him?

P.S. - when the word "value" is used from anyone in power of a corporation like this, they're usually talking about how much value (as in money) they can get out of the customer... or what the company perceives as value, not necessarily the customer. a CEO or top level management official of any corporation or business rolling in the dough has NO idea how to relate what is "of value" to that of the middle class, or even lower class, hard working American.. somehow I think they've had one too many drinks with the politicians of our country who believe they, themselves, are "in touch" with Americans.
puck0114

join:2005-12-24
Portland, OR

Re: I don't trust this guy, his lips are moving..

Succinct.
moonpuppy

join:2000-08-21
Glen Burnie, MD

Hmmmm.....

quote:
The CEO suggested that were Apple to make a non-exclusive LTE-based iPhone they'd love to carry it, but that Apple would have to "get with the program" at some point.
Translation: Verizon wants a bigger piece of the pie than Apple is willing to give up.
QLR

join:2009-06-23
Tallahassee, FL
Reviews:
·Comcast

I think cord cutting will only increase...

... when more folks actually have a choice of ISPs/MSOs that can actually compete with each other in all areas of service. Here, Comcast does it all... on the other hand, CenturyLink only has phone and internet (in these parts), the TV services are bundled with DirecTV. To top it all off, anything data intensive (i.e. video) is a no-no as speeds top off at 1.5Mbps at my place (it was 3.0 a few months ago...?)

norbert26
Premium
join:2010-08-10
Warwick, RI

Re: I think cord cutting will only increase...

You must not be getting an actual speed of 1.5 megs. I just bought a blu-ray DVD player and my DSL runs around 1.5 megs and i have no problem streaming netflix content as long as i dont have 5 or 6 computers trying to do the same on the network. I you have a household of kids using the network then that's another matter.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

the future

in the future, there will be a smaller pie if the cable-tv industry doesn't evolve to a more consumer friendly model. premium prices for channels a significant portion of consumers don't want will not stand (for much longer). generally... the industry will have to provide IP/Internet access and then consumers choose whether to buy phone and/or video from the same providers. the whole notion of value of double/triple play is coming a-crumbling down upon itself.

what consumers (not just YOUNG PEOPLE) are wising up to is that there are very competitive alternatives to the triple play business model. that's why ISP's are chomping at the "BIT" to keep broadband prices as high as they can't without sparking customer backlash-- and thus,[RATE] regulation..

Bill Neilson
Premium
join:2009-07-08
Arlington, VA

I am a huge Apple fan that has gotten every iPhone

and an iPad but the 2-gig limit on the iPad is an absolute joke that sees me restricting myself every month just not to go over it.

I will jump to another company if it ever becomes available WITH a better cap and I will not be purchasing the next iPad if they don't expand the laughably low cap that sees everyone I know near it monthly. And yes, I use my wireless at home.

I love all my products but if they start capping my phone, I will take the plunge to another phone/product that gives me actual freedom to use