Verizon Wireless Expected (Rumored) to Cut Unlimited EVDO Plan by 25% Next Week

[danny boi]

Sat Aug 27, 2005 2:35 AM ET


http://today.reuters.com/news/newsA...WIRELESS-DC.XML


NEW YORK (Reuters) - Verizon Wireless is expected to cut the price of its high-speed wireless Internet service by as much as 25 percent early next week in a bid to increase its customer base for the service, one analyst said on Friday.

The No. 2 U.S mobile service and the country's first to sell wireless Web links with speeds comparable to some home broadband services, will cut its $80 a month rate plan to about $60 in a bid to stay ahead of rivals such as Sprint Nextel, said American Technology Research analyst Albert Lin.

"I think it'll be a significant cut," said Lin, who declined to name his sources. "I think they're trying to maximize the time they have as a monopoly in order to build a customer base lead before there's competition."

Verizon Wireless was not immediately available to comment.

Lin said the price cut for Verizon Wireless' service plan for laptop computer users should put the service, mainly aimed at business people until now, in a more affordable price range for some consumers.

Lin said he does not expect the company to make dramatic changes to its high-speed consumer service, known as Vcast, which delivers content such as Web surfing and video downloads to phones for about $15 a month.

Phone companies around the world have been beefing up their networks to deliver services such as high-speed Internet links and video and music downloads to phones in a bet that demand for such offerings will help offset falling phone call prices.

Verizon Wireless, a venture of Verizon Communications and Vodafone, has led the pack in the United States by starting to sell high-speed services based on EV-DO technology to laptop computer users in some markets in 2003.

It has since expanded the service to cover about one third of the U.S. population and expects to cover roughly half the U.S. population or 150 million people by year end.

Sprint, the No. 3 U.S. mobile service which became Sprint Nextel this month after its purchase of Nextel Communications, said in July it was starting to offer laptop services based on the same technology and with similar charges of $80 a month.

Sprint Nextel expects to have coverage for 143 million people by the fourth quarter and 150 million people -- or roughly half the U.S. population -- in early 2006.

The EV-DO technology which both Sprint Nextel and Verizon wireless are using was developed by wireless technology firm Qualcomm Inc., which sells chips and licenses based on the technology.

The country's biggest operator, Cingular Wireless, a venture of SBC Communications and BellSouth Corp., has said it expects to have high-speed services based on a different technology later this year.



© Reuters 2005. All Rights Reserved.

[bobolito]

Originally Posted by YourDaddy

....will cut its $80 a month rate plan to about $60 in a bid to stay ahead of rivals such as Sprint Nextel....

What do they mean by "stay ahead". Verizon has never been ahead of anyone when it comes to data, let alone Sprint. They should say "in a bid to TRY AND CATCH UP with Sprint. But then again, they will never admit that.

Despite, the price cut is a hard punch in the stomache for Cingular, whose never been fond of cutting prices for data.

Viva la competencia!

[WirelessBeachBum]

Originally Posted by bobolito

What do they mean by "stay ahead". Verizon has never been ahead of anyone when it comes to data, let alone Sprint. They should say "in a bid to TRY AND CATCH UP with Sprint. But then again, they will never admit that.

Despite, the price cut is a hard punch in the stomache for Cingular, whose never been fond of cutting prices for data.

Viva la competencia!

If you consider PCS vision on a handset "Data" then you are correct, sprint has more "data" customers. If you look at telemetery applications and aircards, and EVDO (over 50 cities covered) then Verizon is in the lead.

My only hope is Sprint doesn't do to Verizon what they did with 1xrtt, Verizon launched it first and the Sprint launched all markets at once, it doesn't appear to be so with Sprint doing a phased launce of evdo....we'll see.

[M_Six]

At $60/month, it might be worth dropping cable broadband at home and getting EV-DO. But they need to come up with some kind of modem that can be tied into a router. And I question how they're going to expand from where they are now to "half the population" in just the next few months.

[Fathead]

If it's $60 bucks, I'd get it rather than cable, the $10 is worth the mobility.

[M_Six]

Originally Posted by Fathead

If it's $60 bucks, I'd get it rather than cable, the $10 is worth the mobility.

Agreed. As long I don't have to buy an EV-DO card for every PC in the house. That's where some sort of modem would be handy.

[wgray8231]

Originally Posted by M_Six

Agreed. As long I don't have to buy an EV-DO card for every PC in the house. That's where some sort of modem would be handy.

A single computer with the EV-DO card could work as a router and share the connection with other computers. Computer Networks 101.

[bobolito]

Originally Posted by WirelessBeachBum

If you consider PCS vision on a handset "Data" then you are correct, sprint has more "data" customers. If you look at telemetery applications and aircards, and EVDO (over 50 cities covered) then Verizon is in the lead.

My only hope is Sprint doesn't do to Verizon what they did with 1xrtt, Verizon launched it first and the Sprint launched all markets at once, it doesn't appear to be so with Sprint doing a phased launce of evdo....we'll see.

Sprint is not doing a nationwide "all-at-once" launch of EV-DO. They are doing it by region. Some markets by the end of this year, more to come in 2006. Sprint can't afford (nor do they have time) to wait for a nationwide launch.

Originally Posted by wgray8231

A single computer with the EV-DO card could work as a router and share the connection with other computers. Computer Networks 101.

Hehe....good point!

[larry]

Just for the record Sprint EV-DO is now up and running here in parts of Orange County, CA. I have a friend who's been testing it out and it's on now.

[jones]

$60
That's what i pay for cable modem
(8 MB Downloads 700 kps uploads) &
VOIP
(Unlimited calling anytime in US, Canada and Puerto Rico.
Including Anonymous caller blocking, Call Waiting w/ Caller ID,
Voice Mail w/ email and Text Messaging Notification,
Find Me feature - you input Numbers till you answer,
like office number, cell number, home Number,
Call Forwarding is only one Number,
though it includes call forwarding
plus other features.)
Now what are you gonna do w/
3 desktops, 2 printer, 1 photo printer
and 1 notebook,
which shares this connection.

[M_Six]

Originally Posted by wgray8231

A single computer with the EV-DO card could work as a router and share the connection with other computers. Computer Networks 101.

Yeah, I know. I could do it in my sleep. But your average user cannot. Until it's as easy to set up as cable/dsl routers are now, it won't be replacing cable or dsl as the primary method of access.

As jones stated above, some of us have pretty extensive networks set up at home. I also have two printers, one of which is wireless, a server (also on the WLAN), my wife's workstation (WLAN), and my 2 laptops. Plus both our PDAs. The only way I'd switch is if I could pull the cable modem and replace it with an EV-DO modem. Otherwise it wouldn't be worth the reconfiguration hassle. Common Sense 101.

[jones]

i don't believe they can match cable broadbands speed/reliability
of 8 MB/s.

[WirelessBeachBum]

Originally Posted by jones

i don't believe they can match cable broadbands speed/reliability
of 8 MB/s.

Not yet...but does your broadband work two blocks from your house?

There are PCMCIA adapters available for PC's and if you visit mobileplanet.com there is also an aircard router that will give you wifi and wired access off an ix or evdo card.

That being said, Verizon doesn't really want you using it at your house anyway, the wireless networks are not built to be a replacement for your DSL.

[jones]

it does not have a dead zone though.
My wireless G router can't beat my
old wired router when it comes to speed.
the question is if people will
pay extra for this.
Most can wait to surf at home.

[bobolito]

Originally Posted by WirelessBeachBum

Not yet...but does your broadband work two blocks from your house?

It does with my WiFi "bazooka-style" antenna!

[jones]

if you have a weak signal at Home your download
speed is also slow though it's OK for voice.

[WirelessBeachBum]

Originally Posted by jones

it does not have a dead zone though.
My wireless G router can't beat my
old wired router when it comes to speed.
the question is if people will
pay extra for this.
Most can wait to surf at home.

Sure it does...drive across town and try to pick it up...and yes mobile professionals will pay for it...in fact they eat it up.

[danny boi]

As mentioned, this service is not designed to replace your cable or dsl cpe.

It is meant for the mobile professional who needs quick access to applications that go beyond simple email.

A lot of corporate buffs who travel monthly or weekly depend on hot spot areas or dial up connections where they can pay as between $ 10-20 per session.

Broadband Access is designed to be an alternative to standard dial up or WiFi access and covers a larger geographic area. As EVDO coverage continues to grow, it will become more attractive. Customers still have access to a slower, but more readily available National Access where EVDO is not available.

The industry is changing. Standard DSL is becoming cheaper and cheaper and the Bells are introducing a better wired Broadband alternative coming to a community near you in an attempt to put the cable ISP's back in their place.

Verizon doesn't want to kill its own wired Broadband future by allowing its wireless business to canibalize itself. They want you to buy both where available and its part of a long term strategy which will include new TV services.

[sheureka]

Here you go - http://www.junxionbox.com/ - sheureka

[jones]

Originally Posted by YourDaddy

As mentioned, this service is not designed to replace your cable or dsl cpe.

It is meant for the mobile professional who needs quick access to applications that go beyond simple email.

A lot of corporate buffs who travel monthly or weekly depend on hot spot areas or dial up connections where they can pay as between $ 10-20 per session.

Broadband Access is designed to be an alternative to standard dial up or WiFi access and covers a larger geographic area. As EVDO coverage continues to grow, it will become more attractive. Customers still have access to a slower, but more readily available National Access where EVDO is not available.

The industry is changing. Standard DSL is becoming cheaper and cheaper and the Bells are introducing a better wired Broadband alternative coming to a community near you in an attempt to put the cable ISP's back in their place.

Verizon doesn't want to kill its own wired Broadband future by allowing its wireless business to canibalize itself. They want you to buy both where available and its part of a long term strategy which will include new TV services.

Cool explanation,
eventually Cable will have to look for a Wireless Cell Carrier,
as an MVNO.