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Summary:

This week, Verizon Wireless will announce its big plans to launch a nationwide network using the EV-DO network that can transmit data at over 300 kilobits per second, making it the first real wireless DSL replacement network. The company has a lot riding on this next […]

This week, Verizon Wireless will announce its big plans to launch a nationwide network using the EV-DO network that can transmit data at over 300 kilobits per second, making it the first real wireless DSL replacement network. The company has a lot riding on this next generation wireless platform, and is counting on millions signing up for the service that could cost about $80 a month. ( I for one would love to switch for this would be perfect solution for someone who is always looking for extreme mobility.)

However, Verizon’s launch comes at a time when the pioneering EV-DO service, Monet Mobile filed for bankruptcy. “Kirkland, Wash.-based Monet Mobile Networks apparently couldn’t find enough Internet addicts to sustain cutting-edge wireless networks it deployed in Duluth and several other cities in and near Minnesota over the past 17 months,” writes The Pioneer Press.

The failure of Monet is a cautionary tale about the pitfalls of betting too much on wireless data in a country like US. Previous wireless service providers such as Metricom and Omnisky failed spectacularly.

bq. When Monet launched EV-DO service in Duluth on Oct. 29, 2002, it was a big event in the tech world because of big-name players such as Qualcomm, which helped pioneer the wireless technology that made the Monet service possible. Qualcomm is one of Monet’s key investors.”They decided to stop funding” after getting little for their money, Edmund Wood, Monet’s Seattle-based bankruptcy trustee said. Monet spent $16 million last year, for instance, but only saw about $1 million in revenue. More than $50 million has been invested in Monet. Qualcomm and LG Electronics hold the largest amount of secured debt, according to Monet bankruptcy lawyer Gayle Bush, “in the range of $40 million.”

  1. Charlie Sierra Sunday, March 21, 2004

    Monet means nothing for Verizon.

    Monet CEO, George T., was a liar. He misrepresented the technology and the network. Monet deserved to be shutdown by the investors, because if you can’t trust the MGT, its game over.

    EV-DO is a Kludge, and thats being kind. Instead of being CDMA, its really CDSA, meaning it only serves one subscriber at a time. Thats how it gets its high speed. George was particularly guilt of promoting uses that required a high speed “reverse” link which EV-DO doesn’t have.

    What’s really funny is how the CDMA crowd uses TDMA techniques to achieve the EV-DV standard.

    But perhaps more telling is that, every “greenfield CDMA” carrier in America has either gone bankrupt or had to endure a material capital restructuring at least once.

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  2. you got that right!

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  3. Jacob Norlund Sunday, March 21, 2004

    I used Monet’s service from December 2002 until the closure of service in Duluth in mid-March 2004. Living in an area lacking both cable and standard DSL, Monet’s shutdown was a big loss. You can malign them all you want, but having up to 100 kb/s download speeds and the ability to access internet radio, video, and download large files for $40/month was a lot better than having 3 kb/s downloads as I do now.

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  4. Can Monet Teach Verizon Lessons?

    The demise of Monet Mobile Networks might be cautionary tale for Verizon Wireless’s expansion: Julio Ojeda-Zapata writes that Monet’s demise could teach Verizon Wireless something about the cost of building advanced networks and acquiring customers. Th…

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