Some might argue that subscriber demand for Verizon Wireless’s (
News -
Alert) 4G LTE network
has been less than some would have expected, at least if you consider sales of a couple million units disappointing. The Apple (
News 
-
Alert) iPhone sold more than four million units in one weekend though on three networks, including Verizon Wireless, Sprint and AT&T.
With data-download speeds up to 10 times faster than previous technologies, it might seem that Verizon’s “fourth generation,” or 4G wireless network, would be a hot commodity in a mobile device-crazed world, said Sidecut Reports owner Paul Kapustka.
One might argue
that the early results are a simple reflection of the fact that unless a hot new device is available only on the LTE network, 3G is good enough. And the iPhone (
News -
Alert) still is only available on the U.S. 3G networks, for example.
Though far from a flop, the 4G LTE sales were also light years behind those generated by the iPhone, which only runs on 3G networks in its fastest versions, says Kapustka.
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 else.
Right now, nobody can point to a compelling new application that 4G LTE enables. It is faster than 3G and has lower latency. But people buy “devices” more than they buy “networks.”
Also, if the network application is mobile phone browsing, 3G now seems to work well enough for most people. PC dongle users might well appreciate the lower latency and higher bandwidth, of course.
But it does seem that the value proposition for 4G is not as obvious as some might prefer, with the exception of mobile PC access.
Many observers would argue there will be no “killer app” for Long Term Evolution fourth generation mobile networks.
As true as that observation might be, at the moment, for phones, speed clearly is the killer app for PC dongles. The largest LTE device segment will be PC modems through 2014, as operators initially focus on mobile broadband access for PCs, argues Pyramid Research.
But after 2014, the PC segment will be replaced by smart phone connections. Whether that is because the devices users prefer run on 4G, or whether some new app will emerge, is hard to say at the moment.
Pyramid Research
forecasts that in 2016, there will be 592 million LTE subscriptions in service, equivalent to 7.3 percent of all mobile subscriptions at that time.
It would be perfectly fine, in one sense, for “faster” to be the unique 4G network value, at least initially. Some of us might argue that the “personal hotspot” feature is a potential killer app for LTE, though some would argue that also can be done on 3G devices.
But there are good reasons why service providers would love to discover some novel app that becomes really popular. As was the case with text messaging, large new revenue streams would then be possible.
Want to learn more about 4G wireless technologies? Then be sure to attend the 4GWE Conference, collocated with TMC’s ITEXPO East 2012 taking place Jan. 31-Feb. 3 2012, in Miami, FL. Co-sponsored by TMC (News - Alert) Partner Crossfire Media the 4GWE Conference provides unmatched networking opportunities and a robust conference program representing the wireless ecosystem. The conference not only brings together the best and brightest in the wireless industry, it actually spans the communications and technology industry. For more information on registering for the 4GWE Conference click here.
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Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.Edited by
Jennifer Russell