In his report, “The Top 15 Technology Trends EA Should Watch: 2011 To 2013” Gene Leganza names telepresence as a tech trend to watch. 42% of respondents to the August 2010 Tech Trends survey said telepresence would have a strong impact over the next two years. Why? Because telepresence deliver life like video across distances, making telepresence meetings as similar to live meetings as possible when participants can’t get together face to face – and in today’s economic situation companies continue to trim travel budgets and look for economies wherever they can. Many clients I have spoken with have paid for their telepresence deployments in under a year, and others have touted significant business gains from being able to meet more often and more effectively with a wider cross-section of experts, decision makers and other stakeholders. With this significant value statement, telepresence seems like an obvious choice so why has it not taken off? The answerer is simple and lies in Metcalf’s Law.
On December 5th, Verizon Wireless launched its Long Term Evolution (LTE) network in 38 cities and in over 60 airports. This deployment signals the beginning of the 4G/LTE wars. The fuss over 4G/LTE networks is based on significantly faster network speeds which enable a smoother, faster, less jittery video experience for customers. Verizon’s LTE network is expected to run nearly 10 times faster than the company’s 3G EVDO network with downstream speeds of 5 Mbps to 12 Mbps and upstream speeds of 2Mbps to 5Mbps.
Initially, Verizon Wireless is taking a land grab approach to marketing its LTE network service primarily to business customers who can connect to the Internet using their laptops. Data plans start at $50 per month for 5GB of data, or $80 per month for 10B of data. Additional data use above these data plan caps will cost $10 per GB. Lower price point plans which would appeal to cost conscious consumers were not identified. Verizon plans to offer LTE enabled smartphones in mid 2011.
The $50 per month baseline LTE data pricing plan is undercutting Verizon’s current 3G data access prices. Why undercut 3G data prices? Because the 4G/LTE competitive landscape is heating up. Clearwire is deploying a WiMax network in 68 markets, and T-Mobile is positioning its HSPA+ network as 4G in more than 80 markets. In addition, Verizon is hoping to capture a significant share of customers in the 4G market before AT&T jumps into the 4G arena in 2011, so expect more 4G/LTE announcements and increased competition for 4G customers in the coming year.