Wednesday, December 01, 2010

How Many Verizon 4G LTE Customers Are Willing To Pay $600-$960 Per Year for 5-12 mbps Download Speeds?

How Does 4G LTE Compete with Free?
Verizon new 4G LTE data plans will provide customers with 5 gigabytes of data download for $50 per month or 10 GB for $80 per month, with overage charges of $10 per GB. Verizon Wireless said it will not throttle speeds for customers going over their allotted bucket of bytes.  Verizon is launching 4G LTE services in 39 markets and 62 Verizon 4G LTE airport locations covering 33% of the population or 100 million potential customers at the end of 2011. Verizon won't be adding a voice product to the LTE offering until they have reached a certain level of scale with LTE coverage in the late 2012 or early 2013 time frame.

Verizon 4G LTE is not initially for smartphones and the device lineup for the LTE service will include a single USB modem at launch provided by LG Electronics & Pantech Corp.  The USB devices for laptops will sell for $100 after all rebates and a mandatory two-year contract. The USB devices will include both CDMA and LTE capabilities with the ability to seamlessly handoff when roaming from the LTE network to the CDMA network, but having to reconnect when going from CDMA to LTE.

Verizon Wireless has said their 4G network will provide downlink speeds of between 5-12 mbps using the carrier’s 700 MHz spectrum holdings. The average person doesn't realize yet that at these speeds LTE competes with free broadband WiFi that is typically faster. Will consumers spend the extra $600 - $900 per year for data services that are most often free over Wifi? The reality is Wifi hotspots vs LTE are growing 25X faster than LTE.  If its free its me and if I have to pay now way!

4 comments:

  1. Looks like you added the last paragraph to the press release based on your own opinion.
    The reality is it is absurd to compare a nationwide LTE deployment to free wifi. the fact that you have a limited coverage area, no service levels, and no core network security offerings. In addition there is no control over the backhaul bandwidth aggregation on free wifi as the back-end is usually supported by a single dsl in most cases.
    Do an apples to apples comparison based on equalivant coverage and speed...

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  2. Its not absurd at all to compare. Wifi is growing 25X faster than cell towers and switching capabilities between open nodes is going to happen very soon. All it takes is one company like Google to create the infrastructure for anyone who has a wifi router to open up their network. VoIP works great and wifi broadband is 20-30 mbps for free. We are in a wireless revolution and its going to smack you in the face soon.

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  3. I would like to know where this mysterious 20-30 Mbps free WiFi is located? All the free WiFi places I use, coffee shops, restaurants, hotels, etc. are all slow connections most likely bonded T1 lines with a maximum shared capacity of 3 Mbps up and down.

    Assuming someone comes up with a way to deal with a seamless handover from completely different open WiFi access points, you still have to rely on someone with the capability of flashing their router's firmware or buying and properly configuring a new access point for this type of use. Your average person is just not this technologically capable or even generous enough to let people use their $80 (for those kind of residential speeds) internet for free.

    The fact of the matter the idea of being able to walk or ride from one side of a metropolitan area to the other while streaming video on a mobile device or laptop while using free and open WiFi is not about to happen anytime soon.

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  4. I have 20-30 mbps speeds from Fios and so do all of my neighbors. As soon as we are paid (like Google Ad Sense) to open up Wifi networks to others free wifi will take off. A company like FON.com is a great concept but needs a lot more capital behind it and Google the infrastructure to do it. Yes its disruptive and would piss a lot companies and people off. Its innovation progress and it would provide a lot more jobs and propel location based advertising. LTE will be for enterprises only with the current price point.

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