Verizon Dumps Qualcomm for Euro Upgrades
Verizon Wireless
has chosen a European technology as its path to fourth-generation wireless broadband expansion.
The No. 2 wireless telco says it has opted for the Long Term Evolution, or LTE, network standard and has selected big gearmakers
Alcatel-Lucent
(ALU)
,
Ericsson
(ERIC) - Get Report
,
Motorola
(MOT)
,
Nokia-Siemens
, and
Nortel
(NT)
as its initial suppliers.
The LTE technology standard is built on Europe's Global System for Mobile, or GSM, system and is being developed by the Third Generation Partnership Project group based in France.
The big losers in the choice of LTE are other 4G options like long-time Verizon partner
Qualcomm
(QCOM) - Get Report
with its OFMDA business and WiMax outfits including
Clearwire
(CLWR)
.
The move might not be a total blow to Qualcomm though. The San Diego tech giant has individual representatives on the 3GPP development body, and has said that it expects to have some royalty and licensing opportunities in LTE.
Verizon Wireless -- a joint venture between
Verizon
(VZ) - Get Report
and
Vodafone
(VOD) - Get Report
-- says it expects all the major phone makers including
Nokia
(NOK) - Get Report
,
Motorola
(MOT)
,
Samsung
and
LG
will have handsets that work on the new LTE technology.
Trials will start sometime next year, the company says.
The move would finally align Verizon and Vodafone on the same technology path. Currently, Verizon uses a CDMA-based standard in the U.S., but that system is incompatible with GSM networks operated by Vodafone in other markets.
"LTE will build on the capabilities of Vodafone's 3G broadband High Speed Packet Access (HSPA) network technology, which is available across the entire Vodafone 3G footprint," Vodafone said in a press release.
The company did not say how much it expected the LTE expansion plan to cost.
The move comes just two days after Verizon said it would open its network to other devices beyond what it supplies to its wireless service subscribers. Verizon requires that outside devices pass muster in its lab before receiving a stamp of approval.
Verizon says it is working with consumer electronics companies to embed wireless connections in future products.
Verizon shares were down 7 cents to $42.41 and Qualcomm fell 50 cents $40.92 in post-close trading Thursday.









