Verizon Wireless rolled out its consumer-focused high-speed data service last week with the launch of VCast, offering a slew of video-on-demand and gaming options to subscribers with compatible phones in 32 U.S. markets.
To support the much-anticipated service, the second-largest U.S. carrier unveiled deals with more than a dozen partners. For $15 a month, VCast subscribers get a choice of 300 video clips a day, with content from CNN, NBC, ESPN, FOX Sports, E! Entertainment Television and AccuWeather among other providers.
Verizon offers the service on its CDMA2000 1x EV-DO network, enabling video broadcasts of 15 frames per second, nearing the 30 frames-per-second quality of traditional TV. The deployment was hailed as a major coup by Suzanna Ellyn, senior analyst of wireless service for Current Analysis.
“This launch not only puts Verizon Wireless on par with rival carriers offering streaming media services,” Ellyn wrote in a brief last week, “but also at an advantage due to the broadband-like speeds supporting VCast … The carrier is now months ahead of competitors Sprint and Cingular in deploying true 3G wireless consumer data services.”
Sprint PCS has said it will deploy its EV-DO network by mid-2005; Cingular Wireless L.L.C. plans to launch UMTS service by the end of the year.
While Verizon may have gotten the jump on its rivals in data services, VCast is not without its disadvantages. The service is not available nationwide, as Verizon has yet to build out its EV-DO network in markets like Seattle, San Francisco and Denver. And unlike MobiTV, which is offered through Sprint PCS and Cingular Wireless, VCast doesn’t include live TV broadcasts.
Also, although Verizon received praise for aggressively pricing the service, the subscription fee doesn’t include picture or video messaging, unlike the “all you can eat” data packages some carriers offer.
“Although Verizon Wireless’ EV-DO network positions the carrier as technologically advanced,” Ellyn wrote, “the absence of a live streaming video service available through competitors with slower networks is questionable.”
“A bundled (data services) option would help drive simplicity and encourage usage of Verizon’s other data services while effectively positioning the service directly against Sprint’s PCS Vision Multimedia service,” she added.
But the carrier drew kudos for launching a variety of content offerings to attract users. In addition to news, sports and weather updates, VCast features two soap operas produced exclusively for mobile use, as well as short-length, made-for-mobile episodes based on the Fox hit “24.”
Other video offerings include highlights from the National Basketball Association and Nascar and content from ABC’s “Desperate Housewives.” “Sesame Street” will provide clips featuring noted characters such as Elmo and Big Bird.
Premium services offer three-dimensional mobile games, such as Jamdat 3D Bowling and Evel Knievel, and music video downloads from Warner Music Group. The carrier will rotate offerings at least once a week, making a dozen videos available to consumers at any time. Initial videos will include releases from Sean Paul, My Chemical Romance and The Used.
“We believe services like VCast, which employs 3G technology, will quickly become one of the most important and popular distribution platforms for music and music-related content,” said Michael Nash, senior vice president of Internet strategy and business development at Warner Music Group.
Music videos are $4 per download and game prices vary from $3 for a month’s access to $10 for unlimited use. For a limited time, the carrier is offering two months of free service to users who sign up for VCast.
The service works on three new handsets: the LG VX8000, which sells for $200 after rebate with a two-year agreement; and the Samsung a890 ($250) and UTStarcom CDM8940 ($230). For VCast and other offerings to gain traction, though, wireless data must be available on more phones and to more users, Ellyn said.
“These types of streaming or multimedia services are really early for the market,” she said. “You’re probably not going to see the huge amount of uptake, considering the limited amount of handsets or market reach.”
