C/Net reports that Verizon will increase spending on its wireless broadband service by $1 billion over the next two years. Verizon is committed to investing a total of $3 billion in its networks over the next two years to bring broadband to the mass market, said Verizon CEO Ivan Seidenberg.
While the money devoted to landline projects could turn out to be a reallocation of funds, a company representative confirmed that the $1 billion promised for the wireless build-out will be in addition to funds already budgeted. In both 2002 and 2003, Verizon spent about $4 billion on wireless.
The new wireless network is an expansion of Verizon’s existing 3G (third-generation) data network, known as EV-DO, short for Evolution-Data Optimized. This network is expected to provide average user speeds of 300 to 500 kilobits per second and is expected to be available in many major cities in the United States this summer. It is currently available in Washington, D.C., and San Diego.
Unlike Wi-Fi, users on Verizon’s BroadbandAccess network ($79/month for unlimited service), can connect from anywhere within a service area; they don’t have to be within a few hundred feet of a hot spot to get a high-speed connection.
In November, AT&T Wireless Services announced it will go nationwide with its EDGE technology, which enables connection speeds of about 100kbps to 130kbps. Verizon’s CDMA competitor Sprint, is waiting for EV-DV (Data & Voice), which doesn’t lock up a channel for Data Only. Nextel may jump over “3G” from AT&T & Cingular with “4G”, delivering mobile 500kbps-1Mbps.
No matter how you cut it, these higher speed systems will be a gamble. But wireless could take market share from landlines.
Mass Transit Wireless will be too compelling a business to resist. A software access point, running on a webtablet behind the driver, could also make money on advertising.
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