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Verizon Aims LTE At Rural Markets
The same markets where they hung up on DSL and POTs

In a series of chats with the Wall Street Journal, Verizon Wireless CEO Lowell McAdam says the company will be sharing spectrum with rural providers. According to McAdam, Verizon doesn't expect to make a "lot of money" from these deals, but it will help Verizon generate added income from rural carriers, and expand their national LTE reach. Of course Verizon's LTE network will only be in (tops) 30 markets by year end. Says the Journal:

quote:
Under the proposed arrangements, Verizon would license spectrum for a small fee to local carriers, which would sell the service. Either Verizon or the carrier could handle the job of installing the equipment. Verizon is also striking data roaming agreements with the rural carriers to let their customers use the rest of Verizon's network when they're traveling...Agreements would let Verizon Wireless cover more of the country with its 4G network, which runs on Long Term Evolution, or LTE, technology. But because the number of carriers in rural areas is small, the deals aren't something that Verizon expects to make a windfall from, the carrier says.
As we've long explored, it's important to remember that Verizon is busily selling off DSL and landline customers in rural markets. These deals already give Verizon the ability to ditch union workers and regulators (who have been complaining about Verizon's neglect of rural markets) as well as offload debt and get huge tax breaks.

But Verizon can return to these markets and win back many of these customers (Frontier, Fairpoint) with LTE service. Because of the nature of these deals, Verizon's partner companies wind up overloaded with debt. As a result, most of these customers will probably still be on last generation DSL by the time Verizon finally reaches them with 5-12 Mbps LTE.
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ShellMMG
join:2009-04-16
Grass Lake, MI

ShellMMG

Member

Paint a Big, Fat Target

...right on my rooftop.

Verizon's vehicles have been scooting around our area...a LOT. To the point I'm asking myself whether I'm seeing the same vehicle more than once rather than several of them. I'm in an area not served by cable but there are several nearby towers, including former Alltel ones, and one of them is the one that provides my service.

I bug the heck out of Verizon for LTE every chance I have to call. Clear is a possible provider -- I'll be checking the first of June -- but if they stick an LTE transmitter on the tower and the cap is reasonable (100G?) then I'll be thrilled.
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: Paint a Big, Fat Target

they're probably working on the old Alltel network. VZ is doing the same in Cleveland as far as their trucks.

I do see Sprint and Clear now more and more since they announced Cleveland as a market.

Gbcue
Premium Member
join:2001-09-30
Santa Rosa, CA

Gbcue to ShellMMG

Premium Member

to ShellMMG
said by ShellMMG:

the cap is reasonable (100G?) then I'll be thrilled.
Haha, they'll probably put a 20G or less cap.

phillies
@comcast.net

phillies

Anon

Why is Verizon LTE so slow

Is anyone asking why Verizon's LTE is so slow. All the other carriers advertising LTE speeds are talking abount 25-50Mbps but verizon can only guarantee 5-12Mbps tops? I mean even my T-Mobile HSPA+ which is 3G gets 6Mbps today! Unless Verizon is using some kind of LTE-lite, it should be possible to give more than 5-12mbps considering that Telia provider in Sweeden was delivering 42mbps on LTE
drkaps
join:2008-09-19
Burlingame, CA

drkaps

Member

Re: Why is Verizon LTE so slow

It may be their lack of spectrum -- with only about 20 MHz to play with Verizon can't use big channels so throughput is slower.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

Re: Why is Verizon LTE so slow

said by drkaps:

It may be their lack of spectrum -- with only about 20 MHz to play with Verizon can't use big channels so throughput is slower.
Bullshit Verizon has more spectrum than anyone.
xenophon
join:2007-09-17

xenophon

Member

Re: Why is Verizon LTE so slow

said by 88615298:

Bullshit Verizon has more spectrum than anyone.
So confidently stated yet so wrong in terms of 4G. Verizon has 25Mhz in the 700mhz space. Sprint/Clear has about 100Mhz spectrum for 4G. Could be more if Sprint would dump iDen.

Dwtw
@windstream.net

Dwtw

Anon

Re: Why is Verizon LTE so slow

Clear can "own" 62mhz of BRS spectrum an can lease up to 92mhz of EBS spectrum. VZW has 22mhz of 700mhz (nationwide) spectrum and 77 B Block 12mhz licenses an 25 A BLOCK licenses at 12mhz. vzw can also roam on all the little guys spectrum. VZw in its footprint will have 18million fios fiber ports to use as das backhaul ( Alcalu 10gpon ) small cell sites with 10g lte/802.11n backhaul.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

Re: Why is Verizon LTE so slow

said by Dwtw :

Clear can "own" 62mhz of BRS spectrum an can lease up to 92mhz of EBS spectrum. VZW has 22mhz of 700mhz (nationwide) spectrum and 77 B Block 12mhz licenses an 25 A BLOCK licenses at 12mhz. vzw can also roam on all the little guys spectrum. VZw in its footprint will have 18million fios fiber ports to use as das backhaul ( Alcalu 10gpon ) small cell sites with 10g lte/802.11n backhaul.
Sounds like Verizon doesn't have a bandwidth issue then. Sounds like xenophon is one of those that wishes to kill off OTA so they can snatch spectrum from broadcasters. Verizon hada chance to buy up to 108 MHz of spectrum when TV was forced off channels 52-69. Let's not forget the cell companies got most of the spectrum from channels 70-83 back in the early 80's.

As long as Verizon insists and measly 5 GB caps and $50 per GB overage fees, I say NO to any new spectrum for them.
sonicmerlin
join:2009-05-24
Cleveland, OH

1 edit

sonicmerlin to phillies

Member

to phillies
said by phillies :

Is anyone asking why Verizon's LTE is so slow. All the other carriers advertising LTE speeds are talking abount 25-50Mbps but verizon can only guarantee 5-12Mbps tops? I mean even my T-Mobile HSPA+ which is 3G gets 6Mbps today! Unless Verizon is using some kind of LTE-lite, it should be possible to give more than 5-12mbps considering that Telia provider in Sweeden was delivering 42mbps on LTE
It's not just Verizon, but Clear as well. This 4G WiMax network in Perth, Australia regularly provides 10-20 mbps speeds to its users, much faster than Clear in the US.
»forums.whirlpool.net.au/ ··· =1418240
I'm a little confused as to why this is so, when Clear has so much 4G spectrum.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

2 edits

FFH5

Premium Member

FCC's Genachowski comments on Verizon's rural LTE plans

»hraunfoss.fcc.gov/edocs_ ··· 31A1.pdf
JOINT STATEMENT OF CHAIRMAN JULIUS GENACHOWSKI
AND COMMISSIONER MEREDITH A. BAKER
ON VERIZON WIRELESS’ RURAL 4G INITIATIVE

“Bringing the benefits of mobile broadband to rural America is one the Commission’s top
priorities. The news of Verizon Wireless’ plan to partner with rural providers to accelerate
investment in 4G networks is very encouraging. Seamless universal connectivity is essential to
economic growth and world-class technology leadership. We look forward to learning more
about Verizon Wireless’ initiative, its successful implementation, and other examples of
industry-led innovation.”
Looks like Verizon gets some good will capital at the FCC for this move. Makes getting FCC approval for their Frontier takeover more of a lock. This is how politics is played amongst the big boys.

WHT
join:2010-03-26
Rosston, TX

WHT

Member

Re: FCC's Genachowski comments on Verizon's rural LTE plans

"...other examples of industry-led innovation.”

Crippling their phones and 5 Gig caps is innovation?
Sammer
join:2005-12-22
Canonsburg, PA

Sammer

Member

Re: FCC's Genachowski comments on Verizon's rural LTE plans

After screwing or still attempting to screw (through the Frontier Deal) millions of rural customers in a lot of states why should anyone in rural America trust Verizon? This is just about Verizon Wireless looking for corporate welfare and a FCC chairman who either is or might as well be bought and paid for by Verizon.
ShellMMG
join:2009-04-16
Grass Lake, MI

ShellMMG

Member

Re: FCC's Genachowski comments on Verizon's rural LTE plans

Because some of us don't have access to any other service.

Sprint, AT&T and other ISP's don't reach me. Verizon is the *only* one that does at this time. If they're going to use existing towers for LTE, they're probably going to be the first to offer me faster broadband, too.
Filoteu
join:2004-02-12
Ohio

Filoteu

Member

This LTE

Will it be capped? I sure don't want a capped connection.
bnceo
join:2007-10-11
Bel Air, MD

bnceo

Member

Hmm

This is very interesting. Reason being is that with Verizon selling off the DSL lines, you figure they would avoid the rural areas. But it seems like they are having their cake and eat it too.

Verizon was going to put LTE wireless in the rural areas already because they can't go around claiming best 3G map and not continue it with LTE. So they will open up LTE to the rural areas for regular internet usage and claim "see, we didn't abandon the rural areas". Basically, VzW is going to sell LTE like a replacement for DSL.

pende_tim
Premium Member
join:2004-01-04
Selbyville, DE

pende_tim

Premium Member

Re: Hmm

Very simple reason why there are making this move to sell the landline side of the business and invest in LTE. Follow the profits.

Landlines are expensive to maintain and low ROI. Additionally customers are dropping landlines at record rates.

Wireless, on the other hand, is a growing cash cow: one site to maintain/upgrade coupled with relatively high fees charged to consumers for service. Overlay a bit of LTE gear and the income increases dramatically with little additional maintenance cost. Wireless LTE= good return on investment + good PR with FCC as it fits with their national broadband plan.
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080 to bnceo

Member

to bnceo
said by bnceo:

This is very interesting. Reason being is that with Verizon selling off the DSL lines, you figure they would avoid the rural areas. But it seems like they are having their cake and eat it too.

Verizon was going to put LTE wireless in the rural areas already because they can't go around claiming best 3G map and not continue it with LTE. So they will open up LTE to the rural areas for regular internet usage and claim "see, we didn't abandon the rural areas". Basically, VzW is going to sell LTE like a replacement for DSL.
I agree with most that the selling off of the last mile wired footprint and then expanding wireless to the same areas is hypocritical. However, from the perspective of competing with and/or pushing into Comcast and AT&T turf.. these two companies don't exactly push the envelope with competing either.. so Verizon is finding a way to compete on those NON-COMPETITIVE TERMS.. and that means LTE.. So I understand that "GREED" incentive.. just dont' have to agree with it..

Verizon really shouldn't get ANY government corporate welfare to invest in it's network. However, MetroPcs, Tmobile, Clear and other minority carriers should get subsidized spectrum in rurual areas as incentive to compete against any verizon geography grab.. just because they are #1 (if not subscriber base, then market domination ambitions).

Lower prices and/or greater value for your money seems to fading away once Verizon has a lock on the biggest footprint. The FCC/FTC should consider leveling the playing field for other wireless carriers (besides AT&T and VERIZON). Problem is so much money is thrown at the government that ends up making your choices lower and costs higher due to decreased (effective) competition.

tim_k
Buttons, Bows, Beamer, Shadow, Kasey
Premium Member
join:2002-02-02
Stewartstown, PA

1 edit

tim_k

Premium Member

it's all a game

Who is going to provide the backhaul, Verizon or the rural carriers? What good is LTE if they don't upgrade the tower from a T1? Sounds like Verizon is doing just enough to get some TARP money.

jnc2000
Premium Member
join:2003-08-05
Pittsburgh, PA

jnc2000

Premium Member

Re: it's all a game

No T1 - EBH -- (Ethernet Backhaul) L3 Routers at the cell site and MTSO
»blog.connectedplanetonli ··· y-cisco/

EBH allows VZW to go in with multiple STS paths.

Most people on this bored have no clue what it takes to turn up a new network, let alone engineer growing capacity while trying to migrate all your traffic to new platforms.

Equipment is not cheep.

R Heller
@localnet.com

R Heller

Anon

"Last Generation DSL" Ha! We wish.

The 30 or so towns in Western Mass don't even have 'Last Generation DSL' and probably never will. We still have dial-up. (Really!). And '56k' is more theory than reality. The copper is so bad, that many people can only connect at 28.8K or worse.

Ben
Premium Member
join:2007-06-17
Fort Worth, TX

Ben

Premium Member

Re: "Last Generation DSL" Ha! We wish.

said by R Heller :

The 30 or so towns in Western Mass don't even have 'Last Generation DSL' and probably never will. We still have dial-up. (Really!). And '56k' is more theory than reality. The copper is so bad, that many people can only connect at 28.8K or worse.
     Perhaps they should explore "shotgun dial-up."  Anyone remember that?  You use two POTS lines, with two modems, and then aggregate the connections into one that's faster.  But only certain dial-up ISPs supported that.

Uprangewilly
@irs.gov

Uprangewilly to R Heller

Anon

to R Heller
Tell them Heller. I cant even get DSL where I live, no cable either and it wont be coming any time soon. I can only get dial up and thats at a max 37k.
I dont think people realize just how many people dont have access to broadband. I cant wait till Verizon or Clear bring their service to our area, caps or not. But I can assure you I will be one of the first in line to sign up. I live about 45 minutes south of Cincinnati so hopefully when clear gets deployed there it will spread quickly. I know I have at least 3 cell towers within 6 miles of me but the CO for dsl is like 7 miles away.
TylerCobb
Premium Member
join:2010-01-14
Bartow, GA

TylerCobb

Premium Member

Re: "Last Generation DSL" Ha! We wish.

I am in the same boat as you my friend.... I have high hope of AT&T installing dsl where i live in my lifetime but i highly doubt it...
patcat88
join:2002-04-05
Jamaica, NY

patcat88

Member

cluster****

This is going to backfire big. Sprint had a franchise program. It ended in disaster. The franchisees refused to upgrade to 3G. The franchisees had different tiers with higher prices, so all the national Sprint ad prices were never available in franchisee territory. Then the Nextel merger happened, and Sprint's Nextel was now competing against the franchisees, the franchisees refused to take over Nextel too, they would shut down the network if they were forced to take it over. Sprint had to hostile buyout its franchisees to solve this mess.

»en.wikipedia.org/wiki/Sp ··· tlements

So Verizon better watch out if they will start franchising cellular networks.

jggw
JNCIE
Premium Member
join:2004-08-17
Richmond, VA

jggw

Premium Member

Re: cluster****

Difference in franchise and leasing spectrum. Verizon has the upper hand as they'll offer national roaming to the smaller carriers.

It's a smart move as, you'll see Verizon is quicker to handle an outage in an area. Leasing spectrum in an area they may have never fully developed, will get developed by these "partner networks".

In the era of Sprint PCS and Nextel. It was Nextel franchises, not Sprint. iDen was more government and corporate driven. So it was smarter for Nextel in the legacy days to do that. When it came time to merge, the franchises were afraid they were going to lose money and the national roaming network that was Nextel.

Use a source besides Wikipedia next time.

en102
Canadian, eh?
join:2001-01-26
Valencia, CA

en102

Member

VZW (and Clear as well) doing it right

1. They sold off their POTS businesses and made some money
2. Rural areas have little broadband options, and local telco = $$$ or cable doesn't reach.
3. LTE and/or WiMAX can reach them more effectively and cheaper (this is what they do in most poor countries anyways: wireless costs less to deploy than POTS/cable in rural areas).

Smart move for VZW.

RTG James
@verizon.net

RTG James

Anon

Verizon and Rural Partnerships

RTG Skeptical of Verizon's Sudden Interest in Rural Partnerships »bit.ly/bT6NI6