On Thursday, Verizon Wireless shifted its focus from 3-G to 4-G (the next, next generation of wireless technologies) and confirmed it will be going with a new standard known as Long-Term Evolution (LTE).
The decision is significant for a couple reasons: First, with AT&T also committed to LTE, wireless customers could in theory start roaming between the two networks once they're rolled out in 2009 or 2010.
Given Verizon's new stance on network openness, customers from AT&T with LTE compatible phones could eventually port those phones over to Verizon's network with relative ease and without being locked to the latter provider's choice of software.
As many analysts have noted, globally, there are anywhere from 400 to 500 million CDMA phone users as opposed to 2.6 billion using GSM. This has put Verizon in a very small worldwide minority and is thought to have played a role in the company's recent decision to open up its network to other devices and applications.
At the very least, LTE provides the CDMA-based Verizon a way of increasing compatibility between its own network and the U.S.'s largest carrier -- something that could benefit both Verizon and its customers.
Second, LTE also promises to deliver a significant performance boost even when compared to Verizon's current (3-G) EV-DO network. Verizon claims customers will see as much as 100 and 50 megabits per second in download and upload speeds, respectively. Again, this could pave the way for even more video services, as well as online games and other time-sensitive features on cell phones and mobile devices.
Ultimately, Verizon's 4-G choice doesn't surprise Avi Greengart, principal analyst at Current Analysis, who says the wireless technology is already expected to be key part of Vodafone's future strategy. "[Verizon Wireless is] half owned by Vodafone and it was widely assumed both companies would be working in concert to choose the same next generation network," Greengart says.
"[The decision] is all about economies of scale and getting access to additional infrastructure and equipment makers," he added.
Like WiMax, a number of manufacturers have already committed to making LTE capable devices in the future, including LG, Samsung, Motorola, Nokia and Sony Ericsson, according to Verizon.
As its name implies, LTE is still far from becoming a reality here in the U.S. Nevertheless, the technology is looking to be a strong competitive answer to Sprint's WiMax/Xohm plans, and while it looks like its commercial availability will follow WiMax's, that doesn't take away from the fact that two largest carriers in the U.S. are now backing the technology.
[Via Verizon Wireless]
