Motorola Mobility (NYSE: MMI ) released the Droid Bionic on Sept. 8. The latest
and purportedly greatest in the companys successful line of Google (NASDAQ: GOOG
) Android phones has been receiving no small amount of praise good news for
both Googles latest acquisition and Verizon (NYSE: VZ ), the exclusive carrier
of the phone in the U.S. Technology website Engadget said the Bionic is the best
combination of wireless and device speed that weve yet seen on Verizon. CNN
Money said, Verizon wireless has launched several 4G phones now, but theyve all
had shortcomings … The Droid Bionic finally gets it right. Naturally, this is
precisely the sort of hype Verizon needs just ahead of Apple s (NASDAQ: AAPL )
iPhone 5 release, an exclusive phone that gives it a supreme leg up in the
growing 4G war. It would, of course, if 4G actually meant anything to the
average consumer. Verizon, AT&T (NYSE: T ), Sprint (NYSE: S ) and T-Mobile USA
have all spent millions on television and print advertising campaigns pumping up
their respective 4G networks. But 4G network means different things for
different telecoms. T-Mobile has been touting its HSPA+ standard network as the
countrys largest 4G network since 2010. AT&T and Verizon both use the LTE
standard for their growing 4G networks, but the merits of that network even
simple perks like faster web and data transfers mean little to consumers who
barely understood what 3G meant in the previous round of advertising. Here are
some important facts to consider when weighing whether a tent pole 4G phone will
make or break a telecoms business in the final quarter of the year. In November
2010, research firm Yankee Group published a report that found, out of 1,200
consumers, 68% had either never heard the term 4G before or didnt understand
what it meant . As for 3G technology, 57% of respondents didnt know what it was
and werent aware it was a marquee sales feature for AT&T, Verizon and others
since 2008. What with the tremendous advertising push from all of the previously
mentioned telecoms, consumer awareness is bound to have changed in the past 12
months, right? Wrong. A survey conducted by Morspace this past June found that
only 18% of smartphone users in the U.S. carry phones that can utilize 4G
technology. Perception has improved, but not much 48% cant identify the main
benefits of 4G networks. Worse still, 34% of those consumers that were aware of
what 4G networks are said they have no plans on upgrading to a new device. Its
bad enough that consumers either dont know what 4G is or arent interested, but
some consumers already think they have a 4G-capable phone even when they dont. A
survey conducted by Retrevo in July found that 34% of iPhone users already think
their smartphone is a 4G device. Apple, meanwhile, is preparing to release the
fifth generation of its mobile technology and still has no concrete plans to
support the 4G standards used by AT&T or Verizon even if China Mobile (NYSE:
CHL ) says otherwise . One last factor: No network standard used by any telecom
in the U.S. is 4G yet. The International Telecommunications Union a United
Nations-run agency in charge of setting global communications standards says a
network must support an average data transfer speed of 100 megabits per second
to be considered fourth generation, or 4G. According to tests conducted by PCMag
, Verizons LTE network averages just above 9 Mbps with a maximum of 34 while
AT&Ts network manages an average of 24 Mbps with a maximum of just below 43. The
short version: 4G means little to consumers, and investors should not be swayed
one way or another as to how a publicly traded telecom will fare based on its 4G
technology. The Droid Bionic might be a fine phone for Verizon, but its 4G perks
wont help it win against Apples iPhone 5. As of this writing, Anthony John
Agnello did not own a position in any of the stocks named here. Follow him on
Twitter at
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