Verizon Says New Network Just For Internet-Connected Devices Will Dramatically Cut Costs

Verizon announced it is building an entirely new 4G LTE network core specifically designed for small devices that need occasional bits of data, but not enough to justify the cost of a traditional cellular connection.

The problem with just connecting them to today’s cellular core networks is that they aren’t cost effective for very infrequent connections. That’s why today, almost all cellular-connected devices cost at least several dollars per month, regardless of carrier. Essentially, each device connected to the cell network is treated like another phone or tablet, even given the equivalent of a phone number (or, in some cases, an actual phone number). The high minimum monthly cost is one big barrier to adding more devices to the cell network, with the other being the cost of the module needed in each device. Verizon said it is making progress there, showing off a module that it says halves the cost of adding LTE to an Internet-connected device. Verizon Senior VP Michael Lanman promised that Verizon and its partners would be able to halve the cost again in 2016.