Does Verizon Communications Inc. (VZ) Want T-Mobile to Succeed?

That would also be a big bet on a relatively new technology, especially when consumers still sometimes need to fall back on the 3G network at times when 4G coverage may be spotty. If a consumer picks up a fancy new flagship smartphone only to find that it loses voice capabilities in 4G deadzones, even when there’s a perfectly good 3G network available, the company could be on the receiving end of some serious backlash from subscribers.

For example, here’s Verizon’s current coverage map.

Source: Verizon Wireless.

Imagine only being able to make VoLTE calls in the 4G LTE markets, while venturing in to 3G coverage area would neuter the phone capabilities of that smartphone.

It’s very clear that VoLTE is the future, but as with any nascent technology, rollout and adoption will take time. It seems rather aggressive to expect VoLTE to be ready for total dependence (implied by the predicted elimination of CDMA chipsets) in just a few years.

Betting on the underdog
In some ways, Verizon probably wants T-Mobile to see some modicum of success with ditching subsidies, so that it may potentially follow suit one day. Until then, Verizon will hope other forces can help it battle the rising tide of smartphone subsidies.

The article Does Verizon Want T-Mobile to Succeed? originally appeared on Fool.com and is written by Evan Niu.

Fool contributor Evan Niu, CFA, owns shares of Apple and Verizon Communications Inc. (NYSE:VZ). The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.