Strategy Analytics: Verizon Heats up 4G Competition with Clearwire, Sprint and T-Mobile
4G Mobile Broadband offers Wireline Speeds
BOSTON–(BUSINESS WIRE)–This week’s Verizon's LTE launch ushered in the new era of 4G competition – expanding competition for data and broadband services. Mobile now offers a competitive alternative to fixed broadband for PC applications. Verizon's 4G network, – alongside Clearwire's WiMAX and T-Mobile's HSPA+ networks – will offer consistent speeds of 2 – 5 Mbps. All three operators, as well as Sprint (Clearwire's reseller), describe these services as '4G.' To users, 4G means “comparable to fixed broadband.”
A new Strategy Analytics Tariff and Revenue Service (TRS) Insight, “Verizon LTE Heats Up Nationwide US 4G competition vs. Clearwire, Sprint and T-Mobile,” reports that users no longer need to choose a fixed broadband supplier in order to get high performance data service.
According to Sue Rudd, Director TRS, “Mobile broadband delivers the performance that everyday PC applications require. Mobile broadband performance is now definitely comparable," she added.
Verizon is first targeting LTE at traditional 3G PC modem customers with contracts priced at $50 for 5 GB per month or $80 for 10 GB – at least $10 lower per month than current 3G prices. This service is more than sufficient for Verizon’s small business users and 'road warriors,' who typically use under 3 MB per month. (See Table). Heavy consumers may require more – often up to 5 – 8 GB per month. Typical PC business users will be tempted to trade up immediately.
Estimated Throughput for Selected Business Applications
|Business User Example|
|User Application||Estimated Throughput GB per Month|
|1,000 web searches||~ 0.4 GB|
|3,000 emails||~ 0.1 GB|
|200 emails with Attachments.||~ 2 GB|
|100 Power Point Presentation Uploads||~ 0.3 GB|
Source: Strategy Analytics, Inc.
“Verizon is targeting these conventional PC users now, but greater consumer focus is coming,” commented Susan Welsh de Grimaldo, Director, Strategy Analytics Mobile Broadband Opportunities (MBO) Service. “Verizon has already hinted at a consumer announcement in January 2011 at the Consumer Electronics Show (CES).”
By 2013, growth in nationwide coverage is expected to stimulate increasing mobile broadband competition with highly innovative pricing options, e.g. off-peak video packages, multiple device pricing, premium higher-quality video choices, video conferencing and interactive gaming packages.
The new 4G era has begun.
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