VZW imposing higher certification bar for LTE devices

Verizon Wireless (NYSE:VZ, NYSE:VOD) has always placed higher requirements on its CDMA phones than the rest of the industry, and now it is creating a similarly high bar for devices on its new long-term evolution network. Verizon said it is embracing the open access model for its new LTE network, supporting any device and any application, but it is emphasizing that those devices still have to meet its high performance standards. Luckily for handset vendors, though, those standards likely won’t be too difficult to meet.

During VZW’s first 4G device developers’ Webcast, the operator revealed to 700 registrants details on how the network will function and how devices they build must function on it. Most of the specifications Verizon shared were highly technical, but it did clarify a few things of interest beyond the developer community. In his introduction, Chief Executive Officer Lowell McAdam said the commercial LTE launch would take place in the second half of 2010 and a nationwide footprint would be complete in late 2013 to early 2014. Though Verizon provided no guidance on how VoIP would be handled, the new LTE network will support an IP version of SMS using VZW’s new IP multimedia subsystem architecture.

Subscriber authentication will also be handled via subscriber identity modules (SIMs). On Wednesday, Verizon announced it has selected smart card vendor Giesecke & Devrient to supply SIM cards and Gemalto to supply universal identity circuit card SIMs for the 4G launch.

The technical specifications themselves were almost identical to those laid about by LTE’s standards body, the Third Generation Partnership Project (3GPP), and the certification requirements mostly mirroring those of LTE’s testing entity, the Global Certification Forum (GCF). “We want our overall approach to be straightforward and easy to utilize,” said Rosemary McNally, Verizon Wireless executive director of technology.

One of the key differences between its specs and the GCF’s is that Verizon has set more stringent performance requirements for transmit output power and receive sensitivity, giving devices greater range and greater ability to overcome interference. The requirement fits in with Verizon’s overall network-first strategy, which emphasizes the reliability and coverage of its network above all else. On its CDMA devices, Verizon has typically imposed more stringent handset requirements then others, which is one of the reasons why VZW phones continued to have antenna stubs long after internal antennas became fairly standard.

But by setting a higher bar for power performance, Verizon is requiring handset makers to either design separate devices for the Verizon network or raise the performance of all of their devices to meet the VZW developer guidelines. Initially this will be a moot point due to Verizon’s unique combination of spectrum and network technologies. While the LTE network is fully maturing, any 4G device will have to be multi-mode, supporting LTE at 700 MHz and CDMA EV-DO at PCS and cellular frequencies. Aside from MetroPCS, there isn’t a single other operator that fits that profile, and unless a new swath of 700 MHz spectrum comes open for auction in North or Latin America, there isn’t likely to be another one. Any vendor making a CDMA-LTE phone will essentially be making it specifically for the Verizon network.

As more LTE networks are launched, though—and as Verizon’s LTE coverage becomes more ubiquitous—vendors will likely build multi-band single-mode devices designed for multiple global networks. Verizon is even discussing the possibility of shutting down its EV-DO 3G network in 10 years when the LTE’s footprint is fully built, which would leave LTE as its only data network. At the very least, a vendor might expect to build a 700 MHz LTE-only device that works on both AT&T and VZW’s networks. If a vendor were to design a device that just meets global certification requirements, it presumably wouldn’t be certified by Verizon.

Maravedis analyst Robert Syputa said meeting Verizon’s requirements even on a more generic LTE device shouldn’t be a problem. The higher thresholds for receive sensitivity and transmit power are well within the capabilities of most radio frequency integrated circuits available today. Power amplification must be much more tightly controlled on 4G networks than they are in 3G networks, Syputa said. Verizon may be setting higher standards for its devices than the minimum 3G specifications, but they are by no means onerous, Syputa said. “Device suppliers are not being placed under exceptional requirements by Verizon, in my opinion,” he said.

The FCC requires that Verizon use the C-block 700 MHz spectrum won at auction for open access—a requirement with which Verizon officials at the developer conference said they are more than eager to comply. Verizon is publishing its LTE device specifications long before the LTE network goes live in an effort to encourage as many new and innovative devices as possible, said Tony Lewis, vice president of open development. In the year since it launched the open developer initiative for CDMA, Verizon Wireless has struck dozens of partnerships and has broadly increased the scope of its 3G network as well as its revenue streams, Lewis said.

“Openness is the key to the future of Verizon Wireless,” Lewis said, speaking to the developers on the call. “We are here to partner with you. These partnerships are key to getting products to market faster.”