Running into a dark alley with its current network deployment, Verizon Wireless will deploy 4G UMTS technology within few years.
Vodafone and Verizon Wireless CEOs recently confirmed to Reuters that both carriers are moving in a direction where they'll deploy the same network technologies. Initially, both carriers are testing WiMAX technology in order to get a pre-4G network up and running rapidly. In the long run, the carriers are likely to deploy a global 4G network based on UMTS technology, which will have full coverage in Europe and USA by 2015.
As Verizon Wireless up until now has been a close partner with Qualcomm, it was likely to believe that the carrier would choose Qualcomm's Ultra Mobile Broadband (UMB) technology for 4G network deployment. However, as Vodafone owns 45% of Verizon Wireless, both carriers are now planning to build a joint 4G network based on improved UMTS technology. The improved UMTS technology is currently developed by 3GPP's LTE (Long Term Evolution) project, endorsed by the GSM Association.
As opposed to Qualcomm's UMB technology, which promises download speeds of up to 275 Mbit/s and download speeds of up to 75 Mbit/s, the UMTS-based LTE technology aims to deliver download speeds of up to 100 Mbit/s and upload speeds of up to 50 Mbit/s.
However, just as important as theoretical speeds are the requirement of a developer environment where all industry players can have a voice. During the 3G phase, many players (Apple for instance) felt that Qualcomm worked against them in stead of with them, and as such, it'll be harder for Qualcomm to be as dominant in the 4G phase. At the end of the day, patents play an important role though, so we'll not entirely write off Qualcomm yet.
As for Verizon Wireless, we think their new strategy will ensure that they have a bright future ahead of them. A joint network with Vodafone will be hard for any competitor to beat, and best of all, it could lead to some really exciting handsets coming to their network.
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