Verizon to Expand 3G Network on Back of Current Spectrum

The announcement is likely to be the biggest for the nation’s #2 wireless carrier -- and possibly the most significant of any wireless announcement, in 2005 -- Strigl claimed during a news conference. Verizon Wireless also announced a major expansion of its current 3G EV-DO network.

“3G is here -- we are delivering true 3G services to our customers. This is not a plan for services on the horizon; this is about now,” Strigl said. He said that plans are to make the service available to 150 million POPs by year-end, for $15 monthly beyond conventional wireless service. At year-end 2004 Verizon met a goal of offering 3G to 75 million POPs.

Verizon will be able to offer the video service without having to acquire significant new spectrum -- probably including licenses expected to be offered by the FCC in its advanced wireless services auction in June 2006 -- Strigl said during a press conference. The FCC hopes the auction of 90 MHz of spectrum will attract widespread interest from carriers to offer exactly the kinds of services being premiered by Verizon.

“We'll keep our options open, but let me tell you … we spent the years 2003, 2004 acquiring additional spectrum from sources such as NextWave,” Strigl said. “We think that we have plenty of spectrum in most locations across the country. There are a few places in particular where we will be very aggressive in acquiring additional spectrum. But we think at this point our spectrum position is pretty strong.”

Verizon will participate actively in this month’s Auction 58 of PCS spectrum, he added: “We'll reserve judgment beyond Auction 58.” Strigl conceded that future technologies may mean eventually Verizon will need more spectrum. “Certainly there comes a point in time when any wireless carrier with a large customer base and these kinds of service offerings that we are announcing today will require more spectrum,” he said.

Starting Feb. 1, Verizon Wireless customers will be able to use the first handsets to access Vcast’s video on- demand service, which includes news, weather, sports and entertainment programs. Verizon marketers were on hand to demonstrate the programming tailored to small handset screens. The service will run on Verizon’s EV-DO 3G network and also offer broadband at 300-500 kbps.

Verizon officials said that at launch the service will be available on handsets by LG Mobile Phones, Samsung Telecommunications America and UTStarcom Personal Communications, but all Verizon suppliers will offer Vcast-capable phones. John Stratton, Verizon Wireless chief marketing officer, said during the news conference that while Verizon isn’t disclosing pricing, the handsets will be offered at a competitive price and will be attractive to consumers. “It’s important for us to very actively deploy a wide range of these devices and get them into peoples’ hands,” Strand said.

Verizon officials said Fri. that while use of the product may differ somewhat among markets based on such patterns as mass transit v. car commuting, early tests indicate a strong take rate across markets. “I would stress that this isn’t a plan. This is reality,” Strigl said. “Tests that we have done on this service, and the surveys that we have taken around the world, says that we have great opportunity here in the U.S.

In addition to 20 metropolitan areas EV-DO is offered, Verizon announced Fri. expansion to 12 new markets, including Chicago, Houston, Boston, Phoenix, Cincinnati and Orlando. Content and games will come from content providers including MTV Networks’ VH1 and Comedy Central and 20th Century Fox. NBC will be offer newscasts produced especially for the small screens of wireless handsets.