Big Push for Long Term Evolution

Verizon Wireless, along with other telecommunications companies worldwide, has chosen to deploy Long Term Evolution (LTE) over WiMAX as the 4G technology of choice.

Although WiMAX got a head start (it was launched first), LTE has grown to challenge its competitor, perhaps because it is said to have greater uplink/download speeds. Both WiMAX and LTE typify an upgrade from the current 3G GSM/UTMS technology used by most major carriers.

The 3GPP, the governing body for the evolution from 3G to 4G, sets the standards for development of these new technologies. The group was established in 1998, with the signing of the 3rd Generation Partnership Project Agreement.

There’s only one LTE network available commercially thus far; TeliaSonera has set up the system in some Scandinavian markets. They launched the 4G technology in Stockholm and Oslo in December 2009. The telecommunications company owns spectrum space not only in Sweden and Norway, but also Finland and Denmark. TelioSonera looks to expand into the largest networks in the region. Currently, only USB dongles connect users to the high speed wireless network.

But TelioSonera's monopoly is hastily slipping. Many operators are testing the technology around the globe for possible installation. Telefonica, for one, is currently conducting tests in several countries around the globe, from Spain to Argentina. The testing showcases Telefonica’s commitment to finding the best ways possible to deploy LTE in the near future.

In the United States, Verizon Wireless is making a big push towards LTE. They are currently testing networks in Boston and Seattle, with plans to construct 25-30 networks by the end of this year. Verizon also hinted that they might lease network space to rural carriers, when their nationwide network is up and running.

However, Verizon doesn't exhibit a pristine track record when working with other operators. When pressed about Clearwire’s potential move to LTE, a Verizon executive lashed out at the idea, stating that there’s no room in the market for the (currently) WiMAX operator.

AT&T has also been preparing for the move to LTE. They recently announced their focus of upgrading their network to HSPA+ standards before deploying the 4G technology. HSPA+ is basically an upgrade on the current 3G standards but still not considered a true 4G technology. AT&T chastised Verizon earlier this year, for attempting to roll out a LTE network before New Year's.

They believe the technology hasn't fully reached its potential and companies should run more tests before rolling out networks. The race to offer advanced technologies in the short-term could stunt the growth of such standards later on.

Devices and availability will primarily end up driving the LTE market. Verizon CEO Lowell McAdam recently revealed that many of the top phone manufacturers, like HTC, Motorola, LG, and Research in Motion are developing LTE phones. He also stated that he expects four to six LTE phones to appear on the market by this time next year.

McAdam's statement begs the question whether or not it will be too late. Sprint is releasing the first WiMAX-enabled phone, the HTC EVO 4G on June 4, 2010. Clearwire recently announced it will have two WiMAX-enabled phones by the end of 2010: a video conferencing phone from Samsung and a HTC phone, different from the EVO 4G.

Clearwire hasn’t ruled out changing over to LTE, but hinted that it wouldn’t be before 2012. LTE will be widely adopted in two or three years, but right now, WiMAX has a market advantage due to its early introduction. Should Clearwire switch systems, it would essentially spell the end for WiMAX, at least in the U.S.

Other applications, like smart grid build outs, haven’t really used LTE technology yet. Smart grids could adopt the technology, but the testing stages limit LTE's applicability. Right now, LTE is used primarily for data, so maybe smart grids will begin to use LTE as voice becomes more integrated into the technology.

LTE is backed by some of the top telecommunications companies in the world. There’s a rumor that the latest iPhone, a 4G version, will be LTE enabled. This would be great for Verizon, except AT&T has exclusive rights to the device until the end of 2010.

If the iPhone really works on LTE and Verizon will make good on their promise to roll out networks in 2011, a headline device like the iPhone would be perfect for a market launch.

Email the writer: