Verizon Wireless today laid out more details about its speedy new LTE network: it will go live this Sunday, December 5, in 38 markets, with an “aggressive” plan to cover the rest of the country by 2013. Prices will be comparable with Verizon’s data pricing for tablets, but actually cheaper than their current 3G USB service for laptops. And it looks like we’ll have to wait until CES in January to get more info on consumer devices, and any special services Verizon has in mind.
Verizon’s LTE service will have download speeds of 5-12 megabits per second, and upload speeds of 2mbps-5 mbps, making it faster than some of the other “4G” propositions available in the U.S. market today.
— Pricing. The service is being sold in two tiers: 5 gigabytes of data for $50 per month; or 10GB for $80, with an additional $10 for every gigabyte over your limit. Both will need a special modem, bought on a two-year plan, which costs $150 ($100 after rebate); the first of these will be made by LG (SEO: 066570), with another from Pantech to come online soon. The pricing for 5GB comes in lower than the pricing for Verizon’s 3G USB service, which costs $60 for 5GB. Anthony Melone, Verizon Wireless’ CTO says it set the price “for those who are not sure about their demand…We wanted to incent those others to come over [to LTE] who might not otherwise.”
But Verizon might have something else up its sleeve in setting the prices the way it has: Jonathan Chaplin at Credit Suisse notes that the average usage for a Clearwire (NSDQ: CLWR) subscriber is 7GB per month. On Verizon, that would mean the average user, taking the lower-priced tariff, end up paying $70 if he consumed 7GB, compared to a steady ARPU of $50 at Clearwire (since Clearwire doesn’t have that data cap). Verizon’s price also happens to be lower than Sprint’s 3G-only tariff of $60 for 5GB plan, a sign of how strongly they are competing for the same users.
— How it will be sold. First, only in Verizon retail stores and online. Later, at third-party retailers like Best Buy and Radio Shack. No plans yet to sell anything other than two-year plans for the service.
— Rollout. Of the 38 initial markets, the largest in terms of coverage and population will be southern California, says Melone, covering 20 million people. Coverage will be nationwide by 2013, he says. Until then, when you move from a 4G to 3G coverage area you will automatically hand over. People will be able to view street-level maps of coverage area come Sunday.
— Devices and services. All will be revealed at CES, he says. Devices should be on the market by next year, but no specific indication of exactly when. Also cagey on services, although there was a hint of at least something to do with video: “The cpaabilities of this [LTE] network do lend themselves to video, so you can surmise that some of that will definitely be in play,” he said.

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