New York, NY
|reply to jfmezei |
Re: Charging a premium dissuades adoption of new technology
I'm becoming increasingly doubtful that Sprint will be switching to LTE "real soon", as you put it. I believe they're sort of hoping that WiMax 2 is going to scramble all the equations.
Perhaps they're engaging in a desperate gamble that WiMax will be VHS and LTE will be Betamax. Personally, I feel that's probably wrong. Yes, Verizon Wireless' LTE pricing is for the birds, and if they keep that up they will take a bath and LTE will be priced out of the market, just like Betamax was (even though Betamax actually was superior technically to VHS).
But I just really doubt that LTE will stay in this absurd place price-wise. Someone somewhere will come to their senses at Verizon Wireless or, alternately, other carriers will start undercutting the Verizon Wireless ripoff with more reasonable LTE prices.
At which point Sprint's gamble with WiMax could go down in flames.
Of course, there's always the possibility that BOTH systems could continue to coexist in fierce competition. They both have powerful companies and powerful networks behind them. But economic history is littered with the corpses of once-powerful companies and once-powerful networks.
So, if I had to bet, I would still bet on LTE long-term over the next five years, and on WiMax biting the dust some time within that time frame, with the Clearwire failure later this year or next accelerating the process.
Of course, none of has a crystal ball, least of all me.