LTE Is About Capacity, Coverage, and Latency, Not Just Bandwidth

AT&T's CTO has a blog post indirectly critiquing Verizon Wireless's early LTE launch: I pretty much agree entirely with this John Donovan post. Verizon's commitment to CDMA left it without a reasonable path to future higher speeds in 3G because Qualcomm's EVDO path wasn't compelling enough, and Verizon clearly wanted the worldwide advantage of converging on GSM.

That leaves Verizon stuck at about 3 Mbps downstream with EVDO Rev. A. Verizon Wireless clearly and testably has the most robust and most thorough 2G and 3G network coverage in the US. That's still an advantage and will remain one on the voice side and for a large number of users for whom consistency is more important than speed.

But its early launch of LTE is driven by a need to have a higher speed number to push to businesses and consumers while AT&T and T-Mobile complete rolling out HSPA 7.2 and HSPA+ (21 Mbps), respectively. These evolutionary 3G HSPA flavors provide most of the advantage of first-generation LTE, including somewhat reduced latency, while preserving full backwards compatibility all the way down to GSM rates.

AT&T CTO is pushing the message that moving from LTE speeds to EVDO Rev. A rates will be jarring to customers in terms of what's possible. I agree. The difference is so huge that they are effectively different networks—this is a similar problem Clearwire and Sprint have with 3G/4G converged service plans.

However, Donovan doesn't mention the three other advantages of LTE: capacity, coverage, and latency. Higher bandwidth doesn't just mean that everyone gets greater speed; rather, it means that there's more potential to serve simultaneous users at greater speeds. That's often just as important as peak data rates. Coverage is a factor, because the 700 MHz networks can reach further and penetrate indoors better than 850, 1700, 1900, and 2100 MHz networks.

And latency is huge: lower latency makes networks appear faster because the time for each initial connection for every transaction is reduced. LTE promises very low latency, and HSPA delivers a decent part of that. Reduced latency equates to better video streaming, crisper phone calls, and more responsive Web browsing.

AT&T will benefit from the coverage and capacity issues, based on customer complaints, more than Verizon. But an early LTE deployment focused on speed doesn't provide the full picture of LTE's potential, and it hides the gap Verizon will have for at least three years, if not longer, between current 3G speeds and its LTE promise.

Update: Clearwire's chief commercial office weighs in with a swipe on Verizon's LTE pricing.

Verizon Wireless LTE Launches 5 December

Minneapolis Network Profitable But City Uses Fraction of Paid Services

The Minneapolis city-wide Wi-Fi network is the only successful example of its kind for that scale of network: The next largest networks are far smaller or represent just part of a city. Even better, the Star Tribune reports that US Internet's operations are profitable four years into operation with 20,000 customers. The paper reports a $1.2m annual profit.

But why is it profitable? Because the city of Minneapolis agreed to pay $12.5m over ten years for services—services the city is hardly taking advantage of yet, even though departments are billed internally for them as part of their budgets. The city also prepaid some of these funds. This meant US Internet never ran out of necessary capital, as all its competitors more or less did, but the firm also didn't make new technology choices. It started with BelAir Networks gear, and it continues to use that vendor's equipment.

The failure to use prepaid services sounds much worse than it is. Having a viable additional broadband choice for service in a duopoly market, as well as one that's far cheaper than 3G cell for roaming within the city, has likely saved citizens millions of dollars over four years. Wherever there's the least broadband competition, cable and telephone companies drop prices, often better services, or have extended "introductory" offers you can renew by threatening to switch. It's hard to threaten if there's no second or third choice.

US Internet also pays into a fund to bridge the digital divide ($563K so far), and provides free Wi-Fi at 44 community centers.

As is usual with such efforts, the applications have followed the installation, and it's likely first-generation pilot projects didn't take off between early deployments of technology that wasn't ready and the economic collapse, which put some companies out of business or into retrenchment.

The city is starting to gear up, and within the 10-year contract, unused fees paid in previous years can be rolled over.

Aircell Unwires 1,000th Plane

Verizon Wireless LTE Launches 5 December

The 5–12 Mbps downstream 4G service will launch 5 December 2010 in 38 US markets and 60 airports: Verizon is still engaged in ridiculous pricing. The service will cost $50 per month for 5 GB or $80 per month for 10 GB of data transfer. Given that the cost per bit should be enormously cheaper for Verizon Wireless, and that they should be pricing this competitively with wired broadband carriers in the same market, that's absurd.

Clearwire's hybrid Sprint 3G/Clear 4G pricing makes much more sense. Unlimited usage on 4G Clear network, and same 5 GB limit on Sprint's home 3G EVDO network.

Carriers and ISPs continue to try to retain same limits even as services bump up faster. Comcast has the same 250 GB monthly usage cap on its cable service, whether you're at 15 Mbps or 100 Mbps.

LTE is required to serve next-generation mobile devices with streaming media, low latency, and heavy interactive use straining under CDMA 3G speeds today, although AT&T and T-Mobile move into faster HSPA rates alleviates that in part. But LTE will also become an alternative in some markets to fixed broadband, if Verizon offers sensible pricing.

You can check on which markets are covered at Verizon Wireless's 4G coverage map. I'm hoping to get review gear to test, as Seattle is a launch market.

Verizon Wireless Releases 3G Femtocell

Senators Want Free Wi-Fi in All Federal Buildings

I've read the bill and I still don't understand this: I don't quite understand why senators Snowe and Warner find it necessary to allot money ($15m) and force installation of Wi-Fi networks in federal buildings, starting with facilities run by the General Services Administration (GSA). The bill talks about offloading use from cell networks to Wi-Fi, but Warner's statement about the benefits is sort of insane:

"By starting with the nearly 9,000 federal buildings owned or operated by the General Services Administration, we will be able to provide appreciable improvement in wireless coverage for consumers while also reducing some of the pressure on existing wireless broadband networks."

The bill doesn't call for any free access, only neutral host systems typical for the cellular industry in which one firm operates a base station in an airport or other publicly accessible buildings, and charges a cost-recovery rate to other operators.

I wonder if carriers and providers have been unable to install Wi-Fi networks in federal buildings, and this is an override to GSA policies? There's clearly a constituency here that I'm missing.

SFO Gets Free Wi-Fi Early

Delta Expands WI-Fi to Regional Jets

This is a big shift in in-flight Wi-Fi: Delta is taking a big move in expanding its already extensive Wi-Fi coverage. Delta committed to full mainline fleet coverage—these are the larger planes that carry more passengers and typically fly longer routes—but regional jets seemed less likely. Shorter routes with smaller numbers of passengers would make it seem quite difficult to get a return on the investment.

Nonetheless, Delta has plans to put Gogo Inflight Internet on 223 of the Delta Connection subsidiary and partner aircraft. The planes have between about 65 and 76 seats, according to Delta's press release. More critically, all the planes have first-class sections, and the commitment appears to be put Wi-Fi service on all routes with first-class service.

It's possible that the investment is relatively low compared to the customer loyalty it may engender. Those who want continuous Internet access across a route, and who are more likely to buy or upgrade into first class may be so valuable that the amount realized in additional seats purchased and higher fares (as regional service is often not as competitive as national routes) is where the revenue comes from to balance the accounts.

Delta currently has over 700 mainline aircraft in operation, and 549 of those have Internet service installed. The regional jets will receive Internet service during 2011.

Aircell Unwires 1,000th Plane

Lufthansa Brings Back In-Flight Internet

Lufthansa announces new Wi-Fi in the sky service, FlyNet: Lufthansa was the biggest adopter of Connexion by Boeing in the early part of last decade, and wanted to reach an accommodation to keep it running when Boeing shut it down. The airline has been looking for the right partner to bring service back ever since, and Panasonic Avionics has come through. Panasonic started talking about relaunching a Connexion-like Ku-band satellite service in September 2006, even before Boeing down in-flight service (see "Panasonic May Relaunch Connexion," 19 September 2006).

Although the exact plane count isn't set, Lufthansa said it will equip almost all of its intercontinental craft, having service in place on all such planes by the end of 2011. It's possible that Boeing's Connexion retrofitting may make it cheaper to put in Panasonic's gear, too. The service starts with Internet access via Wi-Fi, although GSM/GPRS access (via an onboard picocell) will be added "in the future."

The pricing is quite aggressive. €19.95 or 7,000 Lufthansa air miles get you 24 hours of unlimited access across any equipped Lufthansa flight and in the airline's lounges. The hourly price is €10.95, which seems crazily high, but they want to push you to pay the 24-hour rate as a sweet spot. Lufthansa's long-haul flights can range from five hours to well over a dozen.

Service will be free until 31 January 2011, but the press release doesn't say when the first Flugzeug with restored access will take off.

(I wanted to write the headline: "Drahtlose Internet und Lufthansa Wiedervereinigen!" but I realized only five readers would get the joke.)

JetBlue Sets Mid-2012 for In-Flight Internet

Alaska Airlines Offers Free Wi-Fi Til 9 Dec 2010

American Honda Motor is sponsoring free Wi-Fi on Alaska Airlines: The offer is good until 9 December.

Alaska Airlines Has Internet Service in Half Its Fleet

Alaska Airlines Has Internet Service in Half Its Fleet