Verizon Wireless Gets Aggressive with LTE Devices and Service Rollout

| Jan 7, 2011 | Consumer Services - U.S.
| Analysts: Weston Henderek, Avi Greengart

Event Summary

January 6, 2011 – Verizon Wireless has announced the launch of ten new devices on its 4G LTE network. These devices include four smartphones, two tablets, two notebooks and two MiFi devices, and all will be available in the first half of 2011. In addition, the carrier announced that it will launch LTE in an additional 140 markets for a total of 178 and 200 million POPs covered by the middle of 2012.

Quick Take

Analytical Summary

• Current Perspective: Positive on Verizon Wireless’ launch of ten new LTE devices at CES, because the carrier needed to deliver on the promise of new cutting edge devices now that it has launched the nation’s first mainstream LTE network. In addition, the announcement that Verizon will launch LTE coverage in 140 new metros in 2011 indicates that its LTE rollout is on track. If the carrier can avoid creating overly complex smartphone and tablet LTE data plans with much higher prices, uptake should be strong.

• Vendor Importance: High to Verizon Wireless, as the carrier has made enormous capital investment in LTE and is now fully committed to its success. The importance of the LTE launch is also magnified by the ever-increasing uptake of smartphones and tablets by consumers, in addition to rising data ARPU. Of course, the whole enterprise could be briefly overshadowed by the announcement of a CDMA iPhone as early as next week.

• Market Impact: High on the wireless services and consumer devices markets, because a 4G LTE network by the country’s largest wireless carrier with a strong mix of devices is a game changer to the whole ecosystem. Device manufacturers will look to get in on the LTE game to sell high end, high margin devices and take advantage of Verizon Wireless’ big ad spend, while competing wireless carriers will look to bolster the data speeds on their own networks. In fact, at CES AT&T has already announced that it is renaming its HSPA+ network to “4G” and speeding up its future LTE plans, while T-Mobile has announced the coming of multi-carrier “4G” HSPA+ for its network in the second half of the year.

CLIENTS ONLY

Competitive Positives and Concerns

Analytical Perspective

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