Verizon Wireless gets closer to 3G

Verizon Wireless launched a high-speed wireless data service last week that is capable of supporting transfer rates of up to 144K bit/sec, about 10 times faster than wireless transfer rates on existing networks.

Called Express Network, the service is available in several large cities on the East and West coasts.

While Verizon may be the first carrier to market with a service supporting higher wireless data transfer rates in a broad market launch, other providers likely won't be far behind, says Eugene Signorini, an analyst with The Yankee Group.

"Sprint has plans to launch a high-speed service in Q2," he says. "There may be a bit of a market advantage in getting very early adopters, but a lead time of a couple of months isn't going to make a big difference."

AT&T Wireless also has tested its 3G wireless services in select markets since last year. While Verizon and Sprint base their 3G networks on 1xrtt, which is based on Code Division Multiple Access technology, AT&T's wireless network will be based on the GSM communication standard that European carriers favor.

Currently, wireless networks support transfer rates of about 14K bit/sec, a far cry from the 144K bit/sec Verizon says its network can support. However, Verizon officials say users initially should expect to get average speeds between 40K bit/sec and 60K bit/sec.

Verizon bills the new wireless network as a 3G implementation, but at 144K bit/sec under ideal circumstances, Express Network is just a step on the path to true 3G, which should support speeds of 3M bit/sec to 5M bit/sec. U.S. carriers are not expected to achieve true 3G speeds until about 2004.

Verizon is promoting the Verizon Wireless 2235 Kyocera as its Express Network handset. The Kyocera unit supports a wireless application protocol browser and two-way text messaging. By also purchasing a Mobile Office Kit from Verizon, users can hook their laptops up to the 2235 handset and use the handset as a wireless modem.

The Sierra Wireless AirCard 555 is the other method users can employ to connect to Express Network. The card fits into a standard PC card slot on a laptop or other computing device and acts as modem and mobile phone.

Verizon also unveiled a partnership with Accenture last week that will involve both companies selling integrated application and wireless offerings to businesses.

Accenture, formerly Anderson Consulting, will handle the integration of mobile enterprise applications, which could include customer relationship management software and inventory information with Verizon's Express Network.

Express Network is available in about 20% of Verizon Wireless' overall footprint. Verizon says it hopes to have most of its points of presence upgraded to support Express Network by year-end.

Verizon Wireless, which is jointly owned by Verizon and Vodafone, an international mobile telecom outfit in the U.K., has about 29 million customers.

Most potential 3G users likely will wait until they have a choice of providers before they decide to sign on for service, says Joe Laszlo, an analyst with Jupiter Media Metrix.

"Consumers and businesses will likely be skeptical about what a 3G service offers them and how much it costs until they see more than one option available," he says.

Customers wishing to subscribe to Express Network must pay $35 for a basic Verizon Wireless digital calling plan and then an additional $30 per month to use any of the basic calling plan minutes on Express Network.

Verizon officials say the company expects to introduce pricing plans in the future for enterprise customers based on kilobytes used.

The Sierra Wireless AirCard 555 retails for about $300 and the Kyocera handset retails for about $80, as does the Mobile Office Kit for the Kyocera handset.