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Monday, January 3, 2011

Verizon Wireless to Showcase Google-Powered 4G Phones

Verizon Wireless is expected this week to show off several devices powered by Google Inc. software for its new 4G network, underscoring the importance of the two companies' relationship even as speculation mounts that Verizon will get to offer the iPhone this year.

On Thursday, at the annual Consumer Electronics Show in Las Vegas, the country's largest wireless carrier plans to demonstrate products including smartphones made by Samsung Electronics Co., Motorola Inc., HTC Corp. and LG Electronics Co. and at least one tablet computer, according to a person familiar with the plans. They would be the first 4G phones from Verizon. The new products are expected to run on Google's Android operating system, this person said.
Verizon Wireless, which is jointly owned by Verizon Communications Inc. and Vodafone Group PLC, has aggressively marketed Google-powered phones, as the two companies have sought to counter AT&T Inc.'s exclusive hold on Apple Inc.'s market-leading iPhone.
In December, Verizon said in a Twitter message that Android and its new 4G service are like "peanut butter and chocolate." The new fourth-generation wireless technology promises super-fast broadband service, aiming to make it easier to watch mobile video, among other things.
Boosting Interest
The new devices won't be available to consumers until later in the year, but Verizon is looking to boost interest in its month-old 4G service and compete with Sprint Nextel Corp., which had a two-year head start on 4G, and has used that advantage to stem years of subscriber losses.
Verizon Wireless is hoping 4G's high speeds will encourage consumers to use their wireless devices for bandwidth-heavy Internet activities like watching video, generating revenue that will offset declining sales of voice minutes. Currently, 4G customers account for only about 1% of the roughly 300 million wireless subscribers in the U.S.


Smartphones are expected to drive demand for 4G services. But while Sprint has been selling 4G phones from Samsung and HTC since the summer, Verizon so far has only offered a handful of laptop cards, known as dongles, which allow laptops to receive the service. "What people are waiting for are 4G phones, not 4G dongles," said Roger Entner, an analyst at Recon Analytics.
The 4G market is getting more competitive—and confusing—as carriers pile in and the definition of 4G remains fuzzy. Sprint and Verizon recently were joined by T-Mobile USA, part of Deutsche Telekom AG, which is touting a 4G network that many in the industry classify as 3G.
AT&T, meanwhile, still claims to have the country's fastest network, based on the broader coverage of its advanced 3G network. It plans to roll out its own 4G network beginning at midyear.
Sprint and T-Mobile also are expected to use the Las Vegas electronics show to promote their 4G efforts by introducing new products and services. Verizon Wireless's presence, however, will be unusually heavy.
Verizon Communications Chief Executive Ivan Seidenberg will make a keynote speech at the show. Verizon Wireless also is taking a booth for the first time, and will feature some four dozen partners, including smartphone makers, chip makers and consumer-electronics companies.
OnStar With 4G
The wireless carrier also will feature a car from General Motors Co. that has an OnStar navigation system powered by its 4G network, said a person familiar with its plans. Existing OnStar systems run on the carrier's older network.
Beyond the new hardware, Verizon Wireless plans to show off applications specifically designed for the faster network, including more video services and multiplayer online gaming.
While people familiar with the matter have said Verizon Wireless is expected to get the iPhone as early as the first quarter of 2011, Apple has yet to sell 4G products. In September, Mr. Seidenberg said, "Hopefully, at some point, Apple will get with the program." At the time, Apple declined to comment.

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