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| 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!
