Summary

1.  There was a particularly big reason why wireless carriers in the US were in the past resistant to moving to 3G. 2.  In forcing the subscribers to change handsets, it opened the door to competitors. 3.  In offering dual mode devices and modules in advance of the arrival of an LTE network, Verizon Wireless will avoid this problem.

Analysis

There is all the more reason for Verizon Wireless to speedily complete its 4G network.  Its 3G base of customers will in many cases remain loyal in that they can shift to the next generation at their own pace without having to get new products such as lap top cards.  There is obviously a big difference between this approach and one that Sprint scrambled to take with its dual mode phone for CDMA and iDEN.  The Sprint customers still had to get a new handset.  

It is noteworthy that the executive at Verizon is talking about supporting the 3G network for a relatively short amount of time, five to seven years.  The service providers’ LTE network could be finished in as few as three years.  Apparently, within about four years of completion of the 4G network, Verizon would like to migrate all of the 3G customers.  For one thing, its operational costs could be significantly reduced in doing so.

Samuel Greenholtz consults with leading institutions through GLG

Samuel Greenholtz, Principal
Samuel Greenholtz

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Principal, Telecom Pragmatics

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