Verizon's LTE Debut: Keep It Simple, Stupid

Verizon Wireless will undercut its current 3G data pricing with its initial LTE plans in a desire to encourage users to try out "4G" and keep the offerings simple and easy to understand.

Verizon's Long Term Evolution (LTE) service will launch Sunday, Dec. 5 in 38 markets with two USB modems from LG Electronics Inc. (London: LGLD; Korea: 6657.KS) and Pantech Co. Ltd. for $99.99 each -- after a US$50 rebate -- with a standard two-year contract. Verizon is offering notebook users 5GB of data downloads for $50 or 10GB for $80. If customers bust through these caps, then they can grab an extra 1GB for a $10 fee.

"We feel this is a great value for both the business and consumer segments," Verizon Wireless CTO Tony Melone said on a conference call introducing the new service on Wednesday afternoon.

Why this matters
Bucking expectations created by both the media and the company's own executives, Verizon has gone with a very traditional $50 data plan that is $9.99 lower than its existing 3G USB Modem plan and doubles the data cap available for $30 more.

"We wanted to keep it simple... and incentivize customers to come over to 4G," Melone explains.

Prior to Verizon revealing these details, the press and bloggers had been all a-Twitter with talk of the possibility of Verizon introducing tiered options like speed caps and paying per bit for data downloads. Interestingly, Melone didn't rule out any options for future LTE services when asked about pricing on the call.

For more
Get more details on Verizon's launch plans below:

  • Verizon to Launch LTE on Dec. 5
  • Verizon's LTE: What You'll Get
  • CTIA 2010: Verizon Ups LTE Launch to 38 Cities

    — Dan Jones, Site Editor, Light Reading Mobile

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