Verizon today unveiled more detail about their LTE wireless broadband launch, announcing that they’ll be offering the 5-12 Mbps service in 38 markets and 60 airports starting December 5. Most importantly, Verizon finally unveiled their pricing for the new service, which after a year filled with endless hints by executives about wanting to try something new winds up being somewhat underwhelming, traditional, and expensive.

The base pricing for LTE laptop connectivity via USB modem (there will be no smartphones at launch) is significantly more expensive than the 3G pricing they unveiled in October, though the caps are obviously higher. Verizon’s current EVDO USB modem plans come in two flavors: $40 for 250MB of usage and $60 for 5GB of usage. Verizon’s LTE pricing will now be $50 for 5GB of usage, or $80 for 10 GB of usage, with $10 per each additional GB. Sayeth big red:

Verizon Wireless customers can choose from two 4G LTE Mobile Broadband data plans: $50 monthly access for 5 GB monthly allowance or $80 monthly access for 10 GB monthly allowance, both with $10/GB overage. For laptop connectivity, two 4G LTE USB modems will be initially available: the LG VL600 is available at launch and the Pantech UML290 will be available soon, each $99.99 after $50 rebate with a new two-year agreement. Both USB modems provide backward-compatibility with Verizon Wireless’ 3G network. If laptop users travel outside of a 4G LTE coverage area, they will automatically stay connected on the company’s 3G network.

It’s interesting to note there’s not even really an entry level LTE plan (say $25 for a gig of use) after literally dozens of Verizon executive comments claiming usage-based pricing was going to be the future. We’ll assume this pricing may evolve as the company begins offering LTE smartphones, which Verizon today announced will arrive sometime in “mid-2011″. Verizon also again today confirmed these devices will initially use 3G/CDMA for voice until LTE voice standards are hashed out. As an added aside: the service will only support MS Windows based PC’s at launch.

Link to the original article…

Verizon finally aired their first ever commercial for their upcoming LTE network during last night’s Sunday Night Football. The Stephen Spielberg-esque ad ad features a lightning bolt delivered by snail mail, and confirms rumors that the network is “coming in December.” As previously noted, Verizon’s initial launch next month will be fairly significant, the 5-12 Mbps service covering 38 markets (roughly one third of the population) and 60 airports right out of the gate. We’re still waiting on Verizon to reveal their pricing for the speedier service, which as of last week the company still claimed they weren’t sure of.

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With Comcast and NBC’s immense lobbying firepower, there’s virtually no chance their merger will be denied by regulators and while there will be some conditions, recent history suggests the conditions may only give a quick nod to substantive consumer protections. According to the Wall Street Journal however, these conditions will be “significant” focused largely on preventing Comcast from withholding, or threatening to withhold, NBC Universal’s programming from competitors. The Journal also claims that the FCC is considering imposing some kind of network neutrality requirements on Comcast’s network:

The FCC is looking at all parts of Comcast and NBC Universal’s combined online-video distribution chain for ways Comcast could promote content over its rivals. The agency is considering imposing a “net neutrality” condition on Comcast’s Internet network, banning it from deliberately slowing or blocking legal traffic. FCC staff members are meeting twice a week with commission Chairman Julius Genachowski about the deal and have set an internal deadline of circulating proposed conditions by mid-December, according to a person familiar with the review.

Given the contentiousness of network neutrality and the FCC’s seeming unwillingness to seriously tackle this issue, any neutrality language will likely be very vague and focused on simple transparency if it even survives the final cut at the FCC. According to the Journal, final DOJ approval could come within weeks, though Comcast is apparently kicking back at any proposed conditions that would cover Internet video.

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Buoyed by the recent ITU declaration that nobody is technically deploying a 4G network here in the States, T-Mobile recently kicked off a new marketing campaign proclaiming that the carrier has the “largest 4G network.”

One cornerstone of the new campaign is apparently making fun of AT&T’s network, which has seen more than its fair share of criticism the last few years due to performance issues in markets like New York and San Francisco. Recent commercials portray AT&T as a balding, middle aged man weighing down the iPhone 4, and the latest ad in the series airing this week certainly isn’t flattering. AT&T got into a feud with Verizon last year about ads mocking AT&T 3G coverage (they even filed suit), but so far hasn’t had anything to say about T-Mobile’s campaign.

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As we mentioned in March, Harbinger Capital Partners is building a new nationwide LTE network dubbed “Lightsquared” using spectrum owned a satellite subsidiary by the name of SkyTerra. Leaked launch information indicates that the company should have 20 markets live by 2012. While they may not have built any cell cites yet the company this week announced that they’ve launched their SkyTerra 1 satellite, which will provide the satellite half of their network build equation.

According to the company, the new bird is one of the largest ever built:

The satellite, a Boeing 702HP built by Boeing Space and Intelligence Systems, is designed to provide wireless mobile services to millions of subscribers. LightSquared’s SkyTerra 1 satellite features a 22-meter L-band reflector-based antenna the largest commercial antenna reflector to be put into service. The satellite, among the most powerful commercial satellites ever built, will provide ubiquitous nationwide coverage and enable integrated satellite-terrestrial service using products that are similar to today s typical mobile devices in terms of size, capabilities and build costs.

Lightsquared plans to sell wholesale access to their LTE network, which will use this new satellite for rural coverage and emergency communication services. The LTE portion of the network will cost about $7 billion and will be built by Nokia. On the more terrestrial news front, it was revealed this week that Harbinger is being investigated by the SEC for a $113 million loan taken out by Harbinger founder Philip Falcone to pay personal taxes and potential “preferential treatment” of certain investors.

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Clearwire’s third quarter earnings were very positive in the sense that the company added a whopping 1.23 million new subscribers during the quarter. On the other hand, cash continues to be a concern as the company continues deployment and preps Mobile WiMax launches in Los Angeles and San Francisco starting in December.

The company posted operating losses of about $540 million during the third quarter and Clearwire CEO Bill Morrow means that this is going to result in some operational streamlining:

While we continue to exceed our subscriber and operational goals, we have not yet secured future funding and prudence dictates that we take appropriate cash conservation steps to reduce costs. We continue to pursue all options for future funding including debt, equity or a potential sale of excess spectrum or other assets, and we remain cautiously optimistic that we will resolve our short-term funding needs in the near future. We continue to believe that our unmatched spectrum portfolio and our all-IP based network will keep us extremely well positioned in the dynamic and burgeoning market for mobile data.”

Clearwire says they’re going to cut back sales and marketing spending, delay commercial Mobile WiMax launches in Denver and Miami, and reduce their workforce by about 15%. Clearwire insists these efforts should reduce costs by $100 million to $200 million this year and the same amount during the first half of 2011. Despite some very deep pocketed sugar daddies (like Comcast and Intel), questions have long lingered about Clearwire’s financial ability to get their network completed. Stacey Higginbotham at GigaOM notes that Clearwire is $2 billion in debt, with several checks coming due soon.

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Buried in what occasionally reads like a love letter to Verizon CEO Ivan Seidenberg, Fortune is the latest to proclaim that the iPhone is headed for Verizon, despite Seidenberg himself all but shooting down the possibility last month.

That so many Americans covet Verizon iPhones “is partly a testament to the efforts of Ivan Seidenberg,” insists Fortune, though in really it’s mostly a “testament” to AT&T’s inability to complete phone calls in the New York and San Francisco markets. Between blowing kisses, Fortune reconstitutes rumors already seen elsewhere, such as Apple and Verizon fighting over control, and the fact this first Verizon iPhone will be CDMA, not LTE:

…people familiar with its development say it is a fait accompli. Verizon, sources say, will sell its own version of the iPhone 4, which will work on Verizon’s CDMA-based 3G network. Unfortunately for globe trotters, the first version of the phone likely won’t be built to work outside the U.S. it probably won’t carry a special chip that can turn it into a “world phone.” However, it may have some of the features on the iPad distributed in Verizon’s stores, like live TV for customers of the FiOS cable service.

Apple supposedly won’t even consider an LTE iPhone until 2012, preferring to wait until initial headaches and battery life issues can be negotiated into the iPhone’s traditionally slim form factor.

That may not be a bad thing for say unhappy AT&T iPhone customers that just signed a long term contract to get the iPhone 4. Given AT&T’s new $325 ETFs are pro-rated (slowly reduced each month), waiting for an LTE Verizon iPhone would make more financial sense; assuming you’re an AT&T iPhone customer that can actually make phone calls with the device.

In other words, if Verizon does get the iPhone, expect the subscriber hit AT&T takes to be staggered and more pronounced in 2012, and expect AT&T to repeatedly proclaim the loss as “no big deal” during 2011. AT&T’s remaining confident in the face of non-exclusivity in part due to their new higher ETF, but also because they believe many subscribers are on family and business plans and can’t (or won’t) defect.

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Back in June Hulu announced Hulu Plus, a $10 a month broadband video subscription service that is supposed to allow users to access entire back catalogs of TV shows above and beyond what’s available on free Hulu, albeit still with commercials. In August, a scathing study showed that the service really wasn’t worth much with 88% of the content already available for free via normal Hulu.

After significant criticism, Hulu is now considering reducing Hulu Plus to $5 a month according to Peter Kafka at AllThingsD:

Hulu is considering cutting the price of Hulu Plus, the subscription service it began testing in June, sources tell me. I’m told the video site is talking about slashing its $9.95 per-month fee in half, to $4.95… a price cut would indicate that consumers haven’t bought in to the pitch. That shouldn’t be a shock, considering the other video options that consumers have, and the limits that Hulu’s content providers have placed on the service.

As we noted earlier this week, Hulu’s made it very clear they don’t want to truly disrupt and reach their full Internet video potential for fear of upsetting their broadcast owners and that’s before they become part of an even larger Comcast media empire. Like other recent decisions, charging and paywalling first and considering whether you’re offering real value later falls right in line with typical broadcast/cable thinking.

It’s not clear if $5 a month would be any more compelling, though if you act now, Hulu will buckle to the most ridiculous demands of broadcasters at no additional cost.

Link to the original article…

Ars Technica directs our attention to a new New American Foundation report that found that United States and Canadian consumers consistently pay significantly more for wireless service. The study tracked prepaid, unlimited, and postpaid plans in 11 countries, and found that the U.S. and Canada were consistently the most expensive for complete plans (SMS/Voice/Data) and SMS. The U.S. fares slightly better in mobile data, ranging from thoroughly mediocre to very pricey:

In the case of unlimited data plans, the U.S. is in the middle tier of service rates. The U.S. offers a plan of $29.99 per month which is cheaper than Canada ($72.90/month), Japan ($52.60/month) and Hong Kong ($38.00/month). On the contrary, Sweden offers much cheaper unlimited data plans for $13.80 per month, followed by India ($19.00/month), and Taiwan ($26.60/month). For prepaid data plans, the U.S. has the most expensive rate at $10.24 per MB, whereas India offers $0.0004/MB, $0.43/MB in South Korea and $0.50/MB in the U.K. Several other countries that also have cheaper rates are $1.64/MB in Taiwan and $1.70 in Denmark.

It’s not entirely clear what guided the Foundation’s 11-country selection, or why countries like France and Spain were left out of the analysis. It’s also not clear how much a broader sample base would help, given that several studies have shown that Canadian and U.S. consumers tend to pay consistently more for lower quality wired and wireless service than many developed countries. We’re going to go out on a limb and guess that these prices don’t include all of the assorted fees, taxes, and “unfees” carriers tack on below the line.

Link to the original article…

According to the latest J.D. Power and Associates Residential Television Service Satisfaction study, consumers are “notably less satisfied” with TV services than last year. That isn’t surprising given the relentless and often bi-annual rate hikes imposed by satellite, telcoTV and cable TV providers, which resulted in new and notable cord cutting last quarter. According to the study, Customer satisfaction with the cost of television service averaged 541 out of 1,000 in 2010, down 14 points from 555 in 2009.

The study measured satisfaction with TV services in four regions (East, West, North Central, South). AT&T U-Verse and Verizon FiOS ranked highest among TV providers, though the cable companies ironically rank higher on residential phone service.

Overall, customers continue to be annoyed with price hikes, which are courtesy of the endless dance of death between broadcasters (who continually hike programming costs) and TV operators (who pass these costs on to consumers along side hikes and new fees of their own). Consumer annoyance has been amplified by a sour economy, and mirroring recent concerns from the investment sector, JD Power notes that these hikes can’t continue indefinitely:

“It’s apparent…that TV providers must better communicate their price-value proposition, as customers are increasingly voicing irritation with the amount of their monthly bill. Seventy-four percent of customers who say they definitely or probably will change TV providers in the next year cite price as a major reason to switch.”

Consumers (for now) continue to pay for services despite these hikes, which is obviously good news for TV providers. But despite changing state laws to ease telcoTV entry into the sector (many times at the cost of consumer protections, local rights, and increased deployment), TV price reductions promised by lobbyists never arrived. Carriers instead engage in non-price competition, and focus on creating the illusion of value through added services that are often half-assed (see AT&T’s Hulu clone, for example).

The TV sector is begging for disruption and the entry of inexpensive, simple, a la carte Internet video options. There’s an endless flood of articles insisting that Internet video isn’t a threat, but that’s largely thanks to the fact that broadcasters are constricting TV streaming licensing for fear of cannibalizing TV revenues, resulting in limited alternatives for consumers. If these endless carriage disputes continue, cable operators may eventually balk, and broadcasters may open their eyes to alternative delivery opportunities.

Link to the original article…

After the Verizon data overcharge, how AT&T is still the only place you can get an Apple iPhone without having to do something illegal, among other complaints, observations and gripes with cellphone carriers in the United States they all suck in one way or another, it seems like U.S. Cellular is trying to reverse that with their recently unveiled “The Belief Project”…

Some highlights of The Belief Project:

• We’re the first carrier to eliminate the need for post-pay customers to continuously sign contracts. With the new “One and Done” contract policy, new customers who fulfill an initial two-year commitment with U.S. Cellular never have to sign a contract again.
• Loyal customers have become accustomed to new customers getting the best deals. At U.S. Cellular, all of our post-pay customers can earn Belief Points simply for being a customer. The points can be redeemed for things they actually want: phone upgrades, additional lines, accessories, ringtones and forgiveness of overage charges.
• Customers are automatically enrolled and start receiving points when they sign up for any U.S. Cellular Belief Plan. There are no fees, blackout dates or expiration, and points are easy to redeem in-store, online or by calling customer service. Belief Points are earned based on a customer’s monthly plan, the number of lines on the account, and how long they’ve been a customer.

As you can see, we believe we are differentiating ourselves in an industry with little differentiation amongst customers.

With reward points being given to users that actively decide, not being forced to stay due to contracts or other incentives that actually cost people more than just outright buying an unlocked phone – number portability does not equate to freedom – this sounds like a seriously great step in the right direction.

Way to go U.S. Cellular. Let’s hope that other companies take note and try to actually reward their customers instead of making them feel like they’re locked into a contract that serves only the company and not the person. Take a look around and see if you’re in their coverage areas.

[ Links: The Belief Project ]

As part of their franchise agreement with New York City, Verizon was required to deploy FiOS services to every home in New York City by 2014 though the agreement allows Verizon lawyers to wiggle over, under and around those obligations should Verizon not see the kind of service uptake they’d like. According to Verizon, they’ve now passed about 1.8 million homes and businesses, or 58% of the roughly 3.1 million households in New York City.

Verizon says they’re ahead of their agreement to pass 54% of NYC premises by the end of this year. Of course while Verizon is moving forward with FiOS deployment in several cities where they’ve signed franchise agreements, they’ve frozen overall FiOS expansion elsewhere.

Link to the original article…