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TRACNotes

Vol. 3  # 15 -- April 15, 2005
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TRAC AND YOU


Can EVDO Replace DSL/Cable? - A TRACNotes reader from McLean, Virginia write: Can Wireless Broadband be used as a replacement for DSL/Cable? I’ve read that Verizon’s implementation of EVDO is the best out there with 500-700 Kbps (kilobits per second) and bursts of 2 Mbps (megabits per second).

The short answer to this question is “yes, but it will likely be slower and more expensive than cable or DSL.” Verizon’s EVDO service is a wireless broadband service targeted toward business and home office users who need a mobile broadband connection. Using a wireless PC card with a laptop computer, EVDO subscribers can get typical downstream speeds of between 400 and 700 Kbps with a capability of up to 2 Mbps. Upstream speeds are much slower with typical speeds expected to be in the 40-60 Kbps range. Verizon is currently offering EVDO service in 30 major markets nationwide for $79.99 per month, not including additional taxes, fees, and surcharges that can add anywhere from 6% to 34% of your bill. Therefore, the “checkbook” cost for EVDO service could potentially be between $84.79 and $107.19 per month.

In general, cable service will be much faster and slightly less expensive than EVDO. For example, residential cable modem service with Cox Cable in McLean, Virginia costs anywhere from a low of $39.95 per month for Cox residential cable subscribers (4Mbps downstream/512 Kbps upstream) to a high of $69.95 for non-cable subscribers (5 Mbps downstream/768 Kbps upstream). There is also a $15 per month fee to consider for subscribers who rent a cable modem. Both the speed and price of cable modem service in McLean is fairly typical for cable modem service nationwide.

DSL service is generally cheaper and slower than cable, but still faster than EVDO. Residential DSL with Earthlink, for example, runs $39.95 per month for 1.5 Mbps or $44.95 for 3.0 Mbps downstream service with 384 Kbps maximum upstream speed on both plans. Verizon DSL is also available in McLean at $29.95 per month for customers who sign up for a one year commitment or $34.95 for customers who do not sign a contract or get Verizon DSL as part of a package of local telephone services. Verizon’s speeds vary by neighborhood, but are usually around 1.5 Mbps downstream and 768 Kbps upstream. Connection speeds with Verizon can be increased to 3.0 Mbps downstream for a higher monthly charge. Consumers who are interested in DSL should try negotiating with their provider of choice to see if they can get a higher speed for a lower rate. EVDO and Earthlink both will likely require new subscribers to sign up for at least a one-year service contract which includes an early termination fee of $149-$175 per line.

In summary, Verizon EVDO will be slower and more costly than cable modem or DSL broadband service, but you will be able to use it from a laptop computer in most major metropolitan areas. Cable modem and DSL service is faster and cheaper, but users are tethered to their cable and telephone jacks. The bottom line is that for consumers willing to sacrifice speed and cost in exchange for mobility, EVDO may be a good bet. Otherwise, stick with cable or DSL.

WIRELESS WATCH


Wireless Consumers Want Good Service, Not More Bells and Whistles - Wireless carriers have been outdoing themselves lately to add new gadgets like digital cameras and color screens to their phones. However, consumers continue to list the basics of good service like price, battery life, and ease of use as the most important features they look for when buying a new phone. According to a new survey released this week by Forrester Research, less than ten percent of wireless subscribers say that a camera is important to their buying decision. Despite massive subscriber growth and progressively more technologically advanced handsets, consumers continue to feel that their service quality is not a priority for their carriers. "The wireless market continues to defy predictions that it is approaching its saturation point," says Forrester Research Principal Analyst Charles S. Golvin. "But while consumers keep buying, they are far from ecstatic with their mobile providers. Despite carriers' focus on improving their networks and customer service, customer satisfaction has declined over the past three years and hovers around 50 percent in key categories like customer service and call dependability." Customer dissatisfaction may be one factor that is driving the growth of prepaid wireless. Prepaid users have doubled in the past two years, reaching close to eleven percent of mobile phone consumers in 2004, noted the Forrester study. For more information on this study, click herei.

The Skinny on Bluetooth - With many states and cities passing legislation banning the use by drivers of wireless phones without a hands-free headset, many consumers are trying to find an alternative to these often-cumbersome accessories. One new technology that consumers may want to have a look at is called Bluetooth. Bluetooth is a technology that allows different electronic devices to communicate with each other wirelessly. For wireless phone users, this means that their phones can communicate with their headsets without the need for cords that can get in the way of driving or other tasks. What’s more, automobile manufacturers Toyota and Lexus are now offering cars with Bluetooth-enabled devices that allow drivers to use their Bluetooth phones through their cars' audio speakers and onboard navigation screens. Currently, this feature is only offered on the 2004 Toyota Prius and Lexus S430. Perhaps the most popular uses of Bluetooth technology, however, are the aforementioned Bluetooth wireless headsets. CNET, an online technology website, recently reviewed thirteen Bluetooth headsets, giving top honors to the Jabra FreeSpeak BT250 and the Epox BT-HS01 headsets. To read CNET’s full review of Bluetooth headsets, click hereii. Wireless users without Bluetooth-enabled phones can also take advantage of the new headsets thanks to adapters offered from such companies as Jabra and Motorola. For additional information on Bluetooth technology, click hereiii .

INTERESTING LINKS


FCC Main Page: http://www.fcc.gov

FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm

List of State Regulatory Commissions: http://www.naruc.org/displaycommon.cfm?an=15

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Endnotes