Fixed Version of LTE Coming from AT&T

Both Verizon and AT&T have signaled willingness to use Long Term Evolution networks to deliver higher-speed broadband access to customers in rural areas. Verizon already does so, selling its "Home Fusion" product. 

Now AT&T executives are sending clearer signals that AT&T plans to do the same. 

"We anticipate that LTE will be a broadband coverage solution for a portion of the country; we just haven't yet gotten to the point where we have enough experience under our belt to know exactly what that footprint is going to be," said John Donovan, senior executive vice president of AT&T Technology and Network Operations. 

Tariffs will be an issue. It is almost unthinkable that the tariffs for Long Term Evolution, used as a substitute for a fixed broadband connection, will be closely equivalent. Consider that mobile broadband services feature single-digit usage plans, where fixed network broadband services have triple-digit caps. 

Verizon's Home Fusion service, which also uses the LTE network to deliver fixed location broadband, features a few monthly service plans, starting at $60 a month (10 gigabyte cap).

The 20 gigabyte plan sells for $90 per month, while the 30 gigabyte plan sells for $120 per month. Under any circumstances, the usage caps for Home Fusion and FiOS fixed network broadband vary by an order of magnitude. 

Many observers will suggest the future AT&T product, as well as Home Fusion, are aimed primarily at rural and other customers who do not have access to faster fixed network access alternatives. 

The direct competitors, in other words, are satellite broadband services, dial-up access or slower digital subscriber line networks. Some might argue that were cable modem services are available, most consumers will choose that service. 

According to a Federal Communications Commission study, about five percent of U.S. homes cannot buy fixed network service from any provider.