IoT, OTT Mobile Video Will Drive Incremental Revenue for Verizon

Exhaustion of the older revenue models and products means firms such as Verizon increasingly will rely on new services to drive revenue growth in the future, Verizon CFO seems to agree.

Incremental subscriber account additions have been the most important measure of mobile service provider growth, as access lines once were the most-convenient shorthand for the health of a fixed line telco, or basic subscribers once were the easiest way to assess the value of a cable TV company.

All that has changed. These days, with bundles of products being the key strategy, units matter more than subscribers or lines in service, to a large extent.

"It's not just going to be about the net adds anymore," Fran Shammo, Verizon Communications CFO said.  

Instead, new products and services built around the Internet of Things and "mobile first" over the top video are going to drive incremental revenue growth. The emphasis on IoT is shared with AT&T.

In fact, IoT revenue is growing almost 45 percent year over year, Shammo said.

The view about video contrasts with AT&T’s strategy, as AT&T believes linear video subscriptions will throw off significant cash flow for quite some time.
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