So Far, LTE is for Data Only

Sometimes I feel like a ‘bent technophobe’ when I see things in the market that doesn’t make sense. Especially with 4G, the carriers have been having a great time with smoke and mirrors, first miraculously turning their 3G network into 4G (see my June 14th 4G Smoke and Mirrors blog), and now advertising the coming of 4G as the ‘finally arrived’ lightning-fast savior for all our devices. But hold on, can we use 4G now? Even with our new smartphones? The quick answer is NO and you’ll need a new smartphone to handle voice and other apps.

A quick recap, 4G is the fourth generation of cellular wireless standards. It is a successor to the 3G and 2G families of standards and basically offers faster data speeds while ensuring quality voice. A 4G system is expected to provide a comprehensive and secure all-IP based mobile broadband solution to laptop computer wireless modems, smartphones, and other mobile devices. What we’re seeing in Q4 in Canada is two major carriers, Bell and Rogers, in select areas with superfast speeds but they don’t say anything about the cell phone device. The reality is that you get an LTE data stick but your smartphone won’t work on it.

With Bell and Rogers, users will have to wait until smartphones are available that can take full advantage of this leading edge infrastructure, probably in 2012. So, you need an upgrade to your existing hand-held device. And even when new LTE phones come out, analysts expect a limited selection of largely Android devices, pointing out that limited battery life has limited development of LTE-capable handsets. Blackberries and iPhones don’t have LTE devices yet. In the U.S., the HTC Thunderbolt, the LG Revolution, the Motorola Droid Bionic, and the Samsung Droid Charge have been announced as 4G phones.

Bell Turbo sticks and Rogers Rocket sticks are available now for online purchase and LTE flex-rate data plans start at $36 and $45 a month (respectively). Both companies can automatically adjust rates and plans based on data usage. “That’s not cheap,” said Info-Tech Research Group analyst Mark Tauschek “I guarantee some people are going to get burned”. He said the plan would mean costs of about $200 a month for 20 gigabytes of data, an amount easy to consume given that the stick is the users’ primary Internet connection. These prices are sufficient for normal, everyday use, but very heavy users of data will have to pay more.

Bottom line here is that LTE currently just gives you faster data speeds and only in select markets. The anticipated drop in data prices is yet to come. What the market is expecting, hopefully, are deep price cuts, tighter integration of applications (this is really third party deliverables) and ease of use while mobile. That’s the whole theory from a business perspective. The jury is still out on what exactly 4G has to offer us in terms of increased productivity and cost savings (if any). I’m just a bit bent out of shape with the marketing of 4G so close to Christmas and feel sorry for those who upgrade their handsets expecting something more.