By Kevin Fitchard
Official launch of the LTE network scheduled for Dec. 5, starting with USB dongles and two data plans
Verizon Wireless (NYSE:VZ, NYSE:VOD) has revealed its planned long-term evolution (LTE) footprint, its advertising campaign for the 4G service, its rollout timeline for the next few years and even the types of mobile broadband devices (dongles) it would start with. Today it finally named a launch date and a price.
Though at first glance neither plan seems like a radical departure from its current broadband billing, the kicker is in its overage charges. VZW will charge only $10 for each additional gigabyte of data consumed each month, expanding the usage-based pricing scheme it first offered with its ad hoc iPad service and tablet plans to mobile broadband. Verizon is essentially establishing a price point of $10 a gigabyte for 4G data (though it’s not quite metering that data since its requiring at least a 5 GB commitment and a contract). In the past, VZW’s laptop plans were designed more to second-guess customers usage patterns and discourage them from going over their allotted caps with punitive overage charges.
VZW chief technology officer Tony Melone, who supervised the 4G rollout, said Verizon expects most customers usage patterns to fit comfortably within either the 5 GB or 10 GB plan. “But there’s no limit,” Melone said. “We’re not going to slow our customers down.”
Verizon is promising typical download speeds between 5 MB/s and 12 Mb/s and upload speeds between 2 Mb/s and 5 Mb/s, which would make it the fastest mobile broadband service on the market. Clearwire's (NASDAQ:CLWR) WiMax network delivers between 3 Mb/s and 6 Mb/s while T-Mobile’s (NYSE:DT) souped-up 3G network supports between 5 Mb/s to 8 Mb/s, which has led it to label the service 4G. AT&T (NYSE:T) has also embarked on upgrade of its high-speed packet access (HSPA) network which could see it offering speeds competitive with 4G services next year, just ahead of its own LTE launch.
Those speeds aren’t necessarily set in stone, though. One of the reasons VZW is able to support such high bit rates is because it’s using double the amount of spectrum its LTE network, a 10 MHz by 10 MHz configuration as opposed to 10 MHz total for Clearwire and 5 MHz by 5 MHz channels for T-Mobile. T-Mobile has already stated it will deploy multi-carrier HSPA+ next year, which would double its carrier size and presumably double the network’s capacity. Clearwire also is experimenting with larger carrier sizes.
VZW, however, also have plenty of room within its current configuration to work. The theoretical top speeds of its 10 MHz LTE downlink is 50 Mb/s, and Melone implied that VZW might be restricting the top speeds available to each user. LTE speeds depend just as much on the spectrum bandwidth available as they do the access technology as evidenced by MetroPCS’s (NYSE:PCS) LTE launch earlier this year. In many markets Metro is using channel sizes as small as 1.4 MHz, effectively swapping out a CDMA 1X carrier for LTE, which would only allow it to deliver speeds barely faster than 3G.
Melone tried to make that point today. He said that many operators are tossing the word 4G around loosely, but he said that VZW refuses to engage in a shouting match over what constitutes 4G in public. He even acknowledged by the International Telecommunications Unions technical definitions, VZW’s network doesn’t meet 4G criteria. “4G has been used for the last several years,” Melone said. “Quite frankly it is what it is.” While VZW will continue to use 4G in its marketing, it will let the LTE network speak for itself, Melone said.
“This is the real deal,” Melone said. “This is a brand new network we’ve built from the ground up,” using new spectrum and much more it and the latest generation of technology. When you think about what you’ve been hearing in the marketplace, think about our track record,” Melone said. “I think you’ll come to the conclusion that this [new network] will make a difference.”
As expected, VZW did not announce any LTE handsets, tablets or other consumer data devices. Melone reiterated VZW’s previous statements that handsets would be available by mid-2011 and VZW would showcase those devices and even some 4G-specific applications at CES in January.
VZW’s new 4G LTE service will go live commercially this Sunday, giving Verizon most of December to market the service to consumers before the Christmas holidays. The first USB modem will be supplied by LG Electronics and the mobile broadband service will be available via a two-year contract for the price of $50 a month for 5 GB of data--$10 cheaper than its 3G mobile broadband service—or $80 for 10 GB of data.
VZW chief technology officer Tony Melone, who supervised the 4G rollout, said Verizon expects most customers usage patterns to fit comfortably within either the 5 GB or 10 GB plan. “But there’s no limit,” Melone said. “We’re not going to slow our customers down.”
Verizon is promising typical download speeds between 5 MB/s and 12 Mb/s and upload speeds between 2 Mb/s and 5 Mb/s, which would make it the fastest mobile broadband service on the market. Clearwire's (NASDAQ:CLWR) WiMax network delivers between 3 Mb/s and 6 Mb/s while T-Mobile’s (NYSE:DT) souped-up 3G network supports between 5 Mb/s to 8 Mb/s, which has led it to label the service 4G. AT&T (NYSE:T) has also embarked on upgrade of its high-speed packet access (HSPA) network which could see it offering speeds competitive with 4G services next year, just ahead of its own LTE launch.
Those speeds aren’t necessarily set in stone, though. One of the reasons VZW is able to support such high bit rates is because it’s using double the amount of spectrum its LTE network, a 10 MHz by 10 MHz configuration as opposed to 10 MHz total for Clearwire and 5 MHz by 5 MHz channels for T-Mobile. T-Mobile has already stated it will deploy multi-carrier HSPA+ next year, which would double its carrier size and presumably double the network’s capacity. Clearwire also is experimenting with larger carrier sizes.
VZW, however, also have plenty of room within its current configuration to work. The theoretical top speeds of its 10 MHz LTE downlink is 50 Mb/s, and Melone implied that VZW might be restricting the top speeds available to each user. LTE speeds depend just as much on the spectrum bandwidth available as they do the access technology as evidenced by MetroPCS’s (NYSE:PCS) LTE launch earlier this year. In many markets Metro is using channel sizes as small as 1.4 MHz, effectively swapping out a CDMA 1X carrier for LTE, which would only allow it to deliver speeds barely faster than 3G.
Melone tried to make that point today. He said that many operators are tossing the word 4G around loosely, but he said that VZW refuses to engage in a shouting match over what constitutes 4G in public. He even acknowledged by the International Telecommunications Unions technical definitions, VZW’s network doesn’t meet 4G criteria. “4G has been used for the last several years,” Melone said. “Quite frankly it is what it is.” While VZW will continue to use 4G in its marketing, it will let the LTE network speak for itself, Melone said.
“This is the real deal,” Melone said. “This is a brand new network we’ve built from the ground up,” using new spectrum and much more it and the latest generation of technology. When you think about what you’ve been hearing in the marketplace, think about our track record,” Melone said. “I think you’ll come to the conclusion that this [new network] will make a difference.”
As expected, VZW did not announce any LTE handsets, tablets or other consumer data devices. Melone reiterated VZW’s previous statements that handsets would be available by mid-2011 and VZW would showcase those devices and even some 4G-specific applications at CES in January.
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