Friday, August 14, 2009

Verizon Wireless tests new 4G technology in Seattle

By Glenn Fleishman

Special to The Seattle Times

It's not exactly, "Mr. Watson, come here, I want to see you," but Verizon Wireless' tests of its fourth-generation (4G) wireless network technology may mark the start of a major transformation in mobile broadband access.

The company said today it made successful data calls in Seattle starting a month ago and Boston today using the Long Term Evolution (LTE) standard that has emerged as the dominant worldwide approach for high-speed cellular data transmission.

These tests, involving 10 LTE network sites in both Boston and Seattle, show that the "selection we made of technology, the selection of suppliers, the selection of spectrum were very sound decisions and we're on track on the commitments," said Tony Melone, chief technology officer of Verizon Wireless, based in Basking Ridge, N.J.

Verizon Wireless' tests represent competition not only to LTE service being developed by rival AT&T, but also to the 4G technology called WiMax being led by Kirkland-based Clearwire in a joint venture with Sprint Nextel.

Today's third-generation, or 3G, mobile broadband networks from the four major U.S. carriers typically move data downstream — from sender to receiver — at rates of about 1 megabit per second (Mbps), a fraction of typical speeds from cable and DSL.

Clearwire's 4G WiMax service, already available in a limited number of markets (and by year's end in Seattle, the company has said), advertises rate of 3 to 6 Mbps.

Melone said Verizon's testing gave the company confidence in a downstream rate of 7 to 12 Mbps.

"These data calls that we made in the last month validate that," Melone said.

These higher speeds are needed as handheld devices, mostly smartphones, have created a dramatic uptick in bandwidth usage and customer expectations. The iPhone is widely cited as a driver of network use, but Apple's device spurred sales of the entire category of smartphones. Nadine Manjaro, a senior analyst at ABI Research, said that the higher speeds of LTE are critical for Verizon's ability to compete.

"AT&T only needs to do a software upgrade to update their entire network to 7.2 Mbps," she noted, citing the highest theoretical speed for AT&T's upgrade.

A key advantage of LTE, Melone said, is lower "latency," the amount of time it takes from a device making a request to receive a response, akin to turning on the faucet and waiting for water to flow. Lower latency improves video streaming, interactivity in gaming, and the quality of VoIP (voice over Internet protocol) calls.

For Verizon's LTE market, handsets will come later — when, the company wouldn't say. The first wave of devices for use on the network will be data-centric. Melone cited USB modem sticks for computers, units like the MiFi for sharing mobile broadband over Wi-Fi, and modems built into netbooks and tablet PCs.

"As we progress, you'll see it evolve into the smartphone and the PDA and what we're used to today," Melone said.

Verizon Wireless plans to have LTE service available in 30 markets during 2010, covering a population of 100 million. For the national deployment, Melone said, "We plan to cover everything that we cover today with 3G, and have it all matched with LTE by 2013." Verizon had no comment on pricing.

ABI Research's Manjaro said this plan, though aggressive, is necessary for Verizon Wireless to compete with AT&T. "They have to deploy as quickly as possible," she said.

Manjaro said she expects pricing to be initially higher than 3G, but to match 3G as LTE replaces that technology.

AT&T, the nation's top carrier by subscribers, recently said it plans to begin LTE trials in 2010, with commercial availability in 2011. Among the two other major carriers, T-Mobile USA hasn't announced its plans, and Sprint Nextel is committed to WiMax, with its majority ownership of Clearwire after a spinoff and merger of assets in 2008. After purchasing $16 billion in spectrum licenses in a Federal Communications Commission (FCC) auction last year, Verizon and AT&T have the capacity to roll out an entirely new network technology. The licenses involve the 700 megahertz (MHz) broadcast band, which is ideally suited for both long-range and indoor penetration.

Verizon won a coveted set of national licenses, along with some regional ones, while AT&T assembled a portfolio of spectrum from many different pieces. "700 MHz is definitely as great a piece of spectrum as we've ever had," Melone said.

The frequencies were formerly allotted to television broadcasters and auctioned in anticipation of June's shutdown of analog TV.

That's also when a clock started ticking at the FCC for auction winners to use what they had purchased. Verizon's national licenses have a four-year window after the DTV transition during which the company must offer cellular service to 40 percent of the population of the regions covered. Other licenses have similar population or geographic area requirements. Melone said LTE could be broadband for places that don't have it.

"700 MHz positions us well for rural America and places that aren't covered today," he said. "We will exploit that. There's no question."

Glenn Fleishman, a Seattle freelance technology writer, contributes frequently to The Seattle Times.