Verizon looks beyond mobile phones for increased revenue in coming years

Verizon Business Plan

Lowell McAdam, chief executive officer of Verizon Communications (VZ), believes the company can generate hundreds of millions of dollars in additional revenue from its wireless network if it looks beyond smartphones and tablets. The executive notes that Verizon will focus on other areas of business, from healthcare and automobiles to energy management. Utilizing wireless networks beyond mobile devices is expected to be a major theme at this year’s Consumer Electronics Show in Las Vegas, Nevada and in the future. Verizon’s biggest rival, AT&T (T), on Monday announced plans to develop a wireless home security network, for example.

“It’s safe to say this is a market potential of billions in the 2020 timeframe,” McAdam said in an interview with Reuters, adding that this should translate into a market with “hundreds of millions of dollars in revenue for a company the size of us.”

At the annual technology trade show, McAdam highlighted two examples where company’s wireless network can be used to bolster revenue with nonstandard services. He said that it could allow doctors to remotely treat patients and could also help firefighters navigate a burning building with the use of an infrared camera that has wireless access to its layout.

The executive said that people will be “really surprised” at what the company can do once “the power of the networks is finally going to be able to provide these sort of things.”

Source:
Reuters
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