Why Speedy 4G Hasn’t Taken Off (Yet) - keslercontold

It's billed as the nation's quickest wireless network. Just it's been slow to draw i users. One year afterward its launch, Verizon Wireless's 4G LTE network has unsuccessful to capture the imagery of the cell phone-buying the great unwashed, who still choose the slower-copulative Orchard apple tree iPhone by large margins.

With data-download speeds up to 10 multiplication faster than previous technologies, Verizon's "quaternary generation," or 4G radiocommunication network, would look to be a active commodity in a waterborne device-crazed world. But a universal iPhone inactivity, combined with high 4G LTE device prices and the lack of a compelling new "4G-only" application are all possible reasons why Verizon had sold-out less than 2 million 4G LTE-capable smartphones during the first nine months of 2011.

Patc not incisively a flop, the slow pickup on 4G LTE phones during 2011 signals that Verizon might equal a bit ahead of the demand curve for faster wireless connectivity. However, the companion's archetypal-mover position in the LTE market might pay off handsomely during 2012, as its more-complete network buildout should give it an edge over competitors–if and when an expected LTE-capable iPhone arrives.

iPhone Inertia and Improved 3G

Right out of the gate, Verizon's 4G LTE generated excitment and bombinate as the supplier sold more than a quarter-million units of its first 4G LTE call up, the HTC ThunderBolt, in honorable fortnight after its mid-March unveiling. But instead of taking off like a rocket, Verizon's 4G LTE numbers went into a a lot slower climb, adding 1.2 1000000 LTE subscribers in the second quarter, and 1.4 million in the third, roughly split half and half 'tween smartphones and former devices such equally modems or portable Wi-Fi hotspots.

Though far from a flop, the 4G LTE sales were also symptomless behind those generated by Apple's iPhone, which alone runs along 3G networks in its fastest versions. Verizon, which gained admittance to the iPhone in February, oversubscribed 6.5 million iPhones during the first nine months of the year, compared to a total of about 1.5 zillion 4G LTE phones. And that's not numeration any iPhone 4s gross revenue, which should just increase the gap. According to Malus pumila, there were 4 zillion iPhone 4s devices sold in the first weekend of gross revenue in October, from Verizon, AT&T and Sprint. Thus why do the slower iPhones continue to outsell the speedier 4G LTE devices?

Even in the face of multiple reviews showing that 4G LTE Android phones might offer a superior performance edge over iPhones, the fact remains that people will line up overnight for iPhones (and iPads), and not for anything other. When it comes time to upgrade, the millions of mostly happy iPhone users simply cull the next version from Apple aside default–even if it runs happening a "slower" 3G network.

[Related story: 4G radio receiver speed tests: Which is fastest?]

One intellect that statement rings even more confessedly these days has to serve with few related facts working against sellers of 4G LTE. The outset is that 3G network performance from all carriers now is pretty decent, usually able to manage bandwidth-intensive tasks like cyclosis video or large-file transfers. The second is that there is No new, compelling application that can entirely run on a 4G network, leading many to question whether you really need a faster meshwork and a more expensive device. If 3G is "angelic enough," wherefore do you want 4G?

Insurance premium Pricing, No Unlimited Data Architectural plan

Cardinal other reasons may have kept users from leaping to 4G LTE phones: The new tiered data plans that Verizon initiated in July, and the premium prices for 4G LTE phones, which were the priciest in the market at either $250 or $300, even with a 2-year contract. Past equivalence, the latest basic pattern iPhones have been just $199 for most of 2011, for the iPhone 4 equally well A the iPhone 4s.

In 2012, what could change the game significantly is the arriver of an LTE-capable iPhone. In the weeks and months before that happens, Verizon's main competitors AT&T and Sprint will represent scrambling to dress what Verizon has already finished–build a nationwide LTE network sure-footed of delivery 4G LTE speeds to that iPhone wherever its potential customers may be.

In 2011, network buildout was the one area where Verizon outperformed even its personal goals for 4G LTE, surpassing its original intention to cover 178 markets by bringing live in services to more than 190 markets aside yr's end. Evening though Verizon had a few network outages, the 4G network mostly performed as publicized.

AT&A;T, away equivalence, was able to only set in motion LTE services in 15 markets by the conclusion of 2011, putting information technology fortunate behind Verizon. Sprint, whose current 4G network is hold up in 71 markets, is even further behind in the LTE speed up, with only "plans" to offer LTE services sometime in 2012. That leads the States to conclude that despite its reasonably pedestrian start in 2011, Verizon's 4G LTE network should truly issue forth of age in 2012, allowing the company to "Rule the Air" as its advertisements beckon, while its competitors struggle to catch up.

Paul Kapustka is editor and founder of Sidecut Reports, an independent research firm that specializes in wireless technologies. Click present for the full 4G LTE Grocery Report for Jan 2012 .