LTE technology

From what Verizon has said this week about its plans to build out a new wireless network based on Long-Term Evolution (LTE) technology, its 4G technology appears to be on a collision course with the WiMAX technology pushed by Clearwire and Sprint.

In a move that will bring fierce competition to AT&T, Verizon Wireless on Thursday agreed to buy Alltel for $28.1 billion in cash and debt. The acquisition will make Verizon Wireless, a joint venture of Verizon Communications and Vodafone, the largest mobile-phone company in the U.S.

Verizon Wireless will add 13 million clients in 34 states and save about $9 billion from the purchase. Synergies are expected to generate incremental cost savings of $1 billion in the second year after closing.

Long-Term Evolution (LTE) has taken another step toward long-term stability. Seven major telecommunications companies announced Monday that they have reached an agreement on a mutual framework for licensing intellectual-property rights relating to 3GPP LTE, the next step after 3G in the evolution of mobile-phone technology.

The vendors are Alcatel-Lucent, Ericsson, NEC, NextWave Wireless, Nokia, Nokia Siemens Networks, and Sony Ericsson. The companies said their framework is based on the industry principle of "fair, reasonable and non-discriminatory (FRAND) licensing terms."