FOLLOWING VERIZON WIRELESS’ ANNOUNCEMENT that it will use Long Term Evolution technology for its fourth-generation network, many who follow the industry immediately began to peg some infrastructure vendors as winners and others as losers.
The bulk of the ‘loser’ chatter was directed at Qualcomm Inc., which backs a competing 4G technology based on its CDMA standard called Ultra Mobile Broadband. But Qualcomm vehemently denies any suggestion that it would lose business as a result of Verizon Wireless’ choice to go with another technology.
“We’re one of the largest contributors to LTE,” said Bill Davidson, senior VP of global marketing and investor relations for Qualcomm, as he pointed to the company’s extensive involvement in 3GPP, the standards body that eventually will decide the LTE standard.
“I think unfortunately our industry has a tendency to pick winners,” he said. “It’s some of the legacy of people thinking we favor one technology over another.”
Davidson noted that Verizon Wireless’ LTE network wouldn’t replace the carrier’s CDMA network anytime soon, and added that it took almost a decade for network operators to feel comfortable enough with their digital networks before they completely did away with the old legacy analog networks. That vision was backed by Verizon Wireless CTO Dick Lynch, who told RCR Wireless News that the carrier’s LTE plans would be based on a new network and that its CDMA-based network would continue operating into the foreseeable future.
“We’ll do everything we can to help Verizon . the same way we have with every other technology they’ve deployed,” Davidson said. “So I don’t look at us as the loser. We don’t play favorites to any one technology over another. We have to go out and support whatever technology our customers want.”
Decision was important
Peter Jarich, research director of telecom infrastructure, mobile networks and carrier core at Current Analysis, said his company sees Verizon Wireless’ decision as a positive for the industry.
“Ultimately, I agree that it’s important for Verizon Wireless to make its intentions clear. If the company wants to see 4G linking all sorts of devices in an open-access world, then it needs to telegraph its technology choice to manufacturers as early as possible,” he wrote in response to questions. “Even if products are available in the 2009 or 2010 timeframe, it will be awhile after that before the networks are built and devices support them. So we’re looking at something five years out. But, again, it’s better to get the word out early and get vendors working on their products.”
Jarich added that Verizon Wireless’ 4G activities could push Sprint Nextel Corp. to commit to a deep WiMAX launch, “potentially overextending itself,” which Verizon wouldn’t mind in the least.
“Clearly, UMB loses out somewhat,” he continued. “With Sprint and Verizon Wireless taking different paths on 4G, it leaves UMB with some limited opportunities: niche applications, smaller CDMA operators, GSM or HSPA operators. I’m afraid it may be a hard sell.”
Danny Locklear, director of wireless marketing at Nortel Networks Corp., said Verizon Wireless’ decision came as no surprise, nor were many in the industry surprised as the operator publicly stated support for LTE months ago.
“We’ve been planning a trial . toward LTE,” Locklear said. “We’ve been working closely with them on various technologies. They have been working with a lot of different parties . but it’s basically the significant players that are working on their network.”
Nortel expects to see a phased migration toward more detailed LTE trials throughout 2008.
Much of what’s holding back the adoption of a standard at this point is the access, the core and some level of backwards compatibility, Locklear said. Nortel anticipates a standard will be mapped out in the first half of next year.
Nortel is one of several infrastructure vendors named by Verizon Wireless as being involved in technology trials beginning next year. Those vendors include Alcatel-Lucent, Ericsson, Motorola Inc. and Nokia-Siemens.
