Verizon Wireless Finally Launches LTE with New Mobile Broadband Data Plan Portfolio

| Dec 3, 2010 | Consumer Services - U.S.
| Analyst: Weston Henderek

Event Summary

December 1, 2010 – Verizon Wireless has finally announced that its LTE network will go live on December 5, 2010. The service will initially cover 38 markets and 60 airports providing access to one-third of the U.S. population. Initially two laptop data devices from LG and Pantech will be available at $99 with a two year contract and $250 without a contract. Pricing will be $50 for 5GB and $80 for 10 GB with $10 per GB overage. Loaded network speeds will be 5-12 Mbps on the uplink and 2-5 Mbps on the downlink.

Quick Take

Analytical Summary

• Current Perspective: Positive on the launch of LTE by Verizon Wireless, because the carrier has made good on its promise to launch its high speed 4G network before the end of 2010. In addition, loaded network speeds in the range of 5-12 Mbps up and 2-5 Mbps down are currently the fastest in the market. Although there are no unlimited pricing plans, initial data plan pricing of $50 for 5GB and $80 for 10 GB with $10 per GB overage starts at a lower price than current 5GB 3G laptop data plans which average $60 per month. The $50 starting point is also less expensive than the 3G/4G $55 unlimited WiMAX plans from Sprint and Clearwire.

• Vendor Importance: High to Verzion Wireless as the carrier has gone all-in on 4G LTE to upgrade its aging CDMA EV-DO Rev.A network. Verizon Wireless is the first major U.S. carrier to launch LTE. Any initial time to market advantage that LTE will give Verizon Wireless is very dependent on how quickly it can ramp up coverage beyond one-third of covered POPs and launch a solid range of LTE smartphones in 2011.

• Market Impact: High on the wireless services market, because now that Verizon Wireless has launched LTE, the competitive environment for wireless data will increase substantially in the U.S. market. This will put pressure on AT&T to remain on schedule for its 2011 LTE launch and add major competition for Sprint and Clearwire who have so far enjoyed a time to market advantage with their WiMAX network.

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