Verizon 4G - Coming to a Farm Near You!: [13th May 2010]

Verizon Wireless is in talks with rural wireless providers to bring 4G to rural America. They are building their next generation wireless network using the spectrum it acquired from the FCC during a spectrum auction in 2008. The provider expects it will be in 25 to 30 new markets by the end of the year by using a technology called Long Term Evolution. Recent speeds tests indicated that consumers can expect download speeds of 8.5Mbps. The deal is still being negotiated with the rural providers, but it is expected Verizon will license their spectrum to local carriers for a fee. The 4G service would then be sold by the rural providers. It is unlikely the deal would make much money for Verizon but would improve their image and help in their plans to bring broadband to all Americans within ten years.

The FCC has been asked to present a detailed cost analysis to Congress before they can move ahead with their plans to reclassify broadband. The bill, which was tabled by Cliff Stearn, a Floridian Republican, would also require the FCC to conduct a market study to show how the broadband industry was not working before they could make any changes. Stearns commented that reclassifying broadband as a regulated service would hurt the FCC goal of making broadband available to all. He believes it is a move to regulate all of the internet. The FCC needs the reclassification in order to be able to implement parts of it's Broadband Plan. The bill requires the FCC to show evidence that harm is being caused to consumers and that they are not getting adequate access to internet content. They will also have to demonstrate what the costs of enforcement and the impact on innovation would be due to the reclassification.

Sprint have released a statement this week in response to the FCC's plans to reclassify broadband. The senior vice president Vonya McCann said that it commends the FCC on taking a cautious approach and that it should focus its energies on protecting consumers and promote competition. They agree that a light regulatory approach will allow continued competition and innovation. They do point out that they are still reviewing the full implications of the plans.

A new report from Leichtman Research has shown that demand for broadband has increased during the first quarter of 2010 by 1.4 million new subscribers. This is up from 890,000 new subscribers in the previous quarter. Of these new broadband subscriptions, 915,000 were for cable companies and 502,000 for telephone companies. Comcast was found to be the largest broadband subscriber followed by AT&T. Experts put the increase down to providers offering services in previously under-served areas.

The US Department of Agriculture has announced that more grant funds are to be made available to rural communities to support the introduction of broadband services. Agriculture secretary Tom Vilsack has commented that the Obama administration want to build rural broadband access as it opens the way for the expansion of business, education and healthcare, making rural communities more competitive. It is expected that $105m will come from the American Recovery and Reinvestment Act.

Clearwire CEO Bill Morrow has been reported as being confident that the company can prosper despite the actions of companies such as Verizon and T-Mobile. Clearwire have been building a 4G network using Wimax and is considering other technologies to stay competitive. The company had reported a loss of $94.1m during the first quarter of this year, despite revenue growing by 72% and the addition of 283,000 new customers. By the end of the year Clearwire expect to be available to 120m people across the country. Morrow has stated that the company owns more spectrum than Verizon and this makes them able to offer a more comprehensive service. They also welcome the competition and have worked it into their future plans.