Verizon has used its 700 megahertz (MHz) wireless frequency band for 4G data transfer to successfully test applications such as web browsing, voice transmission, video streaming and file upload and download. The company is leveraging the network infrastructure provided by its technology partners Ericsson ( ) and Alcatel-Lucent ( ), network equipment vendors Starent Networks ( ) and Nokia Siemens and trial devices providers LG and Samsung.

Leading carriers across the world have adopted LTE as the base technology standard for 4G network upgrade initiatives due to its rapid data-transfer capability that is several times better than the existing 3G networks. LTE offers rapid downlink and uplink speeds of 100 megabits per second and 50 megabits per second, respectively, which is competitive or faster than other leading 4G standards including WiMax.

While Verizon continues to extend its nationwide coverage with third-generation (3G) wireless technology, the company is also investing heavily in 4G infrastructure, a key future growth driver. It has spent $9.4 billion for purchasing the 700 MHz spectrum from the Federal Communications Commission (FCC) auction in 2008, providing the platform for 4G network deployments.

Verizon is well poised to leapfrog its main competitor AT&T ( ) in 4G ventures. The company expects to commercially launch its 4G LTE services in 2010 across 30 markets (covering 100 million people) and plans to provide nation-wide coverage by 2013. This will make Verizon the first wireless operator to offer commercial LTE services in the U.S. as AT&T lags behind with a launch planned in 2011.

We expect this technological lead to strengthen Verizon’s existing network footprint and drive wireless data revenue with increased margins as a result of new features enabled by the lightning-fast 4G services. Average Revenue per User is also expected to rise as higher pricing for wireless data service contributes to an increasing part of overall sales.