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By
Jesse Cryderman
Has 4G Arrived?
Is this the year 4G makes its grand entrance on the world stage? From the looks of press releases and announcements at Mobile World Congress, it would seem so, but the reality is that 4G is still a ways off. And even if you purchase a 4G device from a carrier that advertises 4G service, you are likely to spend as much time cruising at 3G speeds as 4G. How far off? Well, in terms of LTE, recent data from Wireless Intelligence predicts that by 2015 just 4% of the world’s mobile connections will be LTE. And that’s the standard that the developing world is jumping on.
Carriers Embracing Mixed-Tech 4G Networks
Although a public battle has been waged over which is the superior 4G technology—and whether HSPA+ can even be called 4G—some big names in the carrier world have opened to the idea of mixed-tech 4G networks.
In recent announcements, Sprint
executives have reiterated their LTE
plans and revealed the carrier could
deploy an LTE network by the end of
2013. SVP of Network Bob Azzi said,
“we’ll be looking at this probably over
the next four to six months,” with the
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By 2015 just 4% of the world’s mobile connections will be LTE |
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iPhone, iPad2 still 3G
Tablets are projected to be the pre-eminent data portal of the future, and skyrocketing data usage is the most urgent need facing operators. If 4G is crucial to this equation, it would make sense, then, that the new evolution of the genre-defining iPad would have 4G, but this is not the case. The iPad2 is still CDMA 3G, as is the Verizon iPhone. So even though the handset is available on the Verizon network, there is still no 4G service for the iPhone. What does this mean? Perhaps carriers are a little more pragmatic about the move to 4G than they let on.
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intention of LTE as a “complementary
service.” CEO Dan Hesse surmises LTE
to become dominant technology in the
future and also sees a scenario where
both standards are part of Sprint’s
network resources. Is this just a chess
move to get better wholesale revenue
sharing prices from Clearwire? It’s hard
to tell this early, but the announcement
is significant, considering Sprint has
been such a visible torch-bearer for
WiMAX in the United States.
Likewise, AT&T has announced an LTE rollout plan that will combine its existing HSPA+ with the next-gen standard, and has begun marketing it as “the only network with two layers of network technology to deliver 4G speeds.” They’ve also announced the release of 20 LTE devices by the end of 2011, so it looks like their LTE plans are more than just shells to volley at Verizon.
Deutsche Telekom has also signaled that the battle between competing “4G” standards is less important than the user experience. "For us, 4G primarily means a flawless user experience for our customers across various technologies," says Edward Kozel, Chief Technology and Innovation Officer." It won’t matter whether this connection is based on WiFi, LTE or HSPA+."
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T-Mobile Loses Subs, Gets Smart
Despite being ranked as the top mobile carrier in the United States by J.D. Power and Associates, T-Mobile reported a record loss of over 300,000 customers. The carrier offset the loss by adding wholesale customers to balance the loss, reporting a 23,000 net loss in subs. The news is slightly misleading, however, because the carrier increased smartphone subscriptions by 1 million during the same time frame.
Does this news mean T-Mobile is slipping? It’s unlikely. While certainly aggressive competition is a player, many of the customers were lost due to revised credit standards, which is shorthand for lower expected ARPU. T-Mobile’s myTouch 4G is a hot device, and coupled with the T-Mobile’s reliable, wide-spread HSPA+ network (that oftentimes beats Sprint’s WiMAX in real-world speed tests), the carrier offers the combination of sexy toys and network backbone that will lock-in many high-ARPU customers. T-Mobile also announced it will carry new 3D offerings from LG, impressive devices we saw at Mobile World Congress, so record or not, the loss is probably not going to slow the operator down.
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