Summary

1.  Even if Verizon Wireless ha[d] “essentially blown its wad in Barcelona announcing the vendors for the new proto-4G network,” it could have tried to make news in a more conventional manner. 2.  The service provider wants to avoid the press concluding that an idea “is not too dissimilar to the concept that Clearwire...has also talked about with WiMax.” 3.  The introduction of a new and ambiguous metric may not be helpful in the future.

Analysis

When starting from zero in 4G, the notion that “Verizon is eventually looking forward to ‘400 to 500 percent penetration” in the mobile market, sounds very impressive.  However, it is offering amounts of growth seemingly at random.  There is just no way to anticipate the extent of the future use of “non-traditional devices.”  And there is certainly no legitimate means of accurately quantifying the possibilities.

Second, what happens when the 4G market starts to mature?  That kind of number is going to be a lot lower and it could even have the potentially misleading effect of Verizon Wireless’ performance appearing to be less than in actual fact.  

The carrier seems to be holding all of the cards right now in the developing US 4G market.  The apparent combination of a low-cost network with an unwavering commitment to quick deployment should put Verizon Wireless way out in front.  There is just no need to engage in over-the-top rhetoric.

Samuel Greenholtz consults with leading institutions through GLG

Samuel Greenholtz, Principal

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Principal, Telecom Pragmatics

 
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.