Telephony LIVE

THE 2008 TELECOM SUMMIT

Introducing Telephony Live: The 2008 Telecom Summit -- the second annual, two-day conference from the editors of Telephony magazine.

Learn more

         Subscribe in NewsGator Online   Subscribe in Bloglines   

3G SHOTS FIRED

more on the topic

More Related Articles

Sixty bucks for a broadband connection — doesn't seem like a bad deal. That's how much my cable modem costs, and there's an added benefit: I could take that new connection with me anywhere — at least anywhere Verizon Wireless has an EV-DO network.

Just as Sprint is starting to turn up its own 3G network — giving Verizon Wireless its first real competition for broadband speeds — Verizon is initiating the first blow in what could become a pricing war. It dropped the price of its 3G data card service from $80 to $60 for unlimited use with the purchase of a standard wireless voice plan. Sprint remains at $80 for its service, and it still has fewer networks until its aggressive rollout by the end of the year. But you can bet that as Sprint gets its 3G juggernaut standing upright, it will respond to Verizon Wireless' first jab. Cingular Wireless is expected to jump into the fray by the end of the year, promising 15 to 20 UMTS networks, eventually augmented with high-speed downlink packet access upgrades. So come December, we could have three new broadband providers offering something approximating nationwide metro broadband access for $60 per month.

The Tier 1 carriers don't want to be broadband competitors. They don't want their wireless channels to become the equivalent of the dumb pipes of DSL or cable. And that's what their business connection services essentially are, a conduit to the Internet with perhaps a VPN client tossed in for good measure. Their real money is expected to come from the consumer content and business applications they ship over that pipe. While $60 per month may seem like a lot of money compared with the paltry $4 to $8 of data revenues carriers are collecting per customer each month, those Vcast and Vision customers are using data in a much different way than a guy at an airport with a laptop.

EV-DO and UMTS services will be true broadband services, promising speeds in excess of 300 kb/s — better than some DSL connections today. And if they are true broadband services, customers will use them like broadband services, surfing the Web heavily, downloading massive files — whether Excel documents or Metallica songs — and talking over their Skype accounts. That kind of data traffic pales in comparison to the paltry megabyte or two of streaming music or video or 100 kb/s MMS message that carriers are trying to monetize over the same network. For the amount of network data traffic of one heavy broadband user you could horn in dozens of “wireless” subscribers on the network.

Unlike a wireline network, where you can build more access lines and add more fiber, there's only so much information that can be shoved into a frequency radiating from a cell tower. You can bet carriers would rather use that capacity to support hundreds of consumers with their incremental spending rather than a few broadband hogs sucking up the data streams.

It's not that carriers aren't interested in becoming broadband providers. They are — that's what Wi-Fi and WiMAX are for. Their 3G networks, however, are for someone special. And that isn't you, Mr. Laptop user.

Get Updates Via Email

related resources

popular articles

Want to use this article? Click here for options!
© 2008 Penton Media Inc.

Webcasts

WEBCAST

Telephony’s Inside Telecom Live: The Next Broadband Business Models

Find out! Watch Telephony's LIVE Webcast September 9, 2PM ET/11AM PT. Telephony will scope out next year's broadband business models. LEARN MORE or REGISTER NOW.

White Papers

WHITE PAPER

Distributed Denial of Service Attacks: Global Insights and Mitigation Techniques

This report provides unique insights into recent distributed denial of service (DDoS) attacks, including their number, type, frequency, duration, firepower, and origins. DOWNLOAD NOW

Podcasts

PODCAST

A Telephony Podcast: Planning for an Internet Traffic Jam

How fast is Internet traffic really growing, and what should broadband providers be doing to stay ahead of demand? LISTEN

Blogs

BLOG

How to Do A Deal With Google

Verizon Wireless looks to be cutting a search deal with Google. Operators must realize they have as much value to give as they do to receive.READ

E-Books

E-BOOK

READ E-BOOK: MANAGING THE CUSTOMER EXPERIENCE

This e-book explains how to keep your customers happy, reduce churn and strengthen profits. Sponsored by CA’s Wily Technology Division. READ NOW!

TV

TV

Interview with Jim Hansen of Embarq at NXTcomm08

Tune in to Telephony TV to watch an interview with Embarq's Jim Hansen at NXTcomm08. WATCH IT NOW.

  • Telephony Content
  • Telephony Content

NEWS & INSIGHTS

CURRENT ISSUE

TOOLS

more news

Global >>

MORE

Ethernet >>

MORE

Independent >>

MORE

IPTV >>

MORE

IMS >>

MORE

WiMax >>

MORE

VOIP >>

MORE

FTTX >>

MORE

Access >>

MORE

Broadband >>

MORE

Wireless >>

MORE

Software >>

MORE

Podcasts >>

MORE

Get Updates Via Email

Browse Issues

  • September 1, 2008
  • July 14, 2008
  • June 30, 2008
  • Jun 16, 2008
  • May 19, 2008
  • May 5, 2008
  • Apr 28, 2008