Telcos Touchy on Net Push

Verizon Wireless also points to its rising data ARPU and attributes a portion of the gains to 3G. "We've got hockey-stick growth rates going on with all these services," says the Verizon Wireless rep.

And as for failing to deliver streaming video, Verizon isn't willing to take the hit.

"Don't hold Verizon Wireless accountable for overhanging the market on streaming video," says the rep. "That's Sprint's problem. We never claimed that 3G would permit streaming or that customers would even want it. What we have on 3G are downloadable video clips made for a cell-phone experience."

To counter the notion that billions of dollars in network upgrades went for naught, Verizon points to the 55 million downloads of games and ringtones it handled in the second quarter and the popularity of its $10-a-month navigation service, which uses 3G technology to give users maps and travel directions.

Ovum's Entner adds that focusing on the revenue side is only part of the 3G equation.

Higher network capacity helps cut costs, says Entner. "A UMTS network can provide a minute cheaper" than an older technology standard, such as global systems from mobile, or GSM.

Still, critics say there's no payback in sight on 3G investment by the big-spending telcos.

"Will a CEO admit they spent billions on a system that can't even pay the cost of debt?" asks Charter's Snyder. "Never."

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