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AT&T, Verizon test 4G LTE Nokia Lumia phone

A version of Nokia's Lumia 800 with 4G LTE is in labs at AT&T and Verizon right now.  —  Behind the scenes, Nokia is making some headway with the big two carriers in the U.S.  —  The Finnish handset vendor, eager for a comeback …

CNET News Roger Cheng

Context & Ripple Effects

Nokia's push back into the U.S. runs through the two carriers that matter most, and the current Lumia 800 cannot clear their bar: neither AT&T nor Verizon will anchor a flagship to a phone without LTE. An LTE variant now sitting in both carriers' labs is the first concrete sign the Finnish vendor is making headway where it has long been marginal.

The timing matters on the carrier side too. AT&T's takeover bid for T-Mobile USA is at risk of collapsing, and the carrier has just started throttling its heaviest data users down to 2G speeds — moves that raise the value of differentiated devices. Verizon, meanwhile, has shown how tightly it curates its lineup, confirming it asked Google to withhold Google Wallet from the Galaxy Nexus.

First-order effects

  • An approved LTE Lumia would give Nokia its first realistic path to subsidized, flagship-tier placement on the two largest U.S. carriers, replacing import-niche distribution with contract shelf space.
  • AT&T and Verizon each gain a candidate to diversify LTE lineups beyond Android and iPhone at a moment when both are actively shaping what runs on their networks.

Second-order effects

  • With its T-Mobile acquisition in jeopardy, AT&T has added incentive to secure exclusive device relationships that set its network apart, making Nokia a potential bargaining chip in its post-deal strategy.
  • Verizon's demonstrated willingness to strip features from marquee phones signals that any Lumia deal would come with carrier conditions attached, trading distribution reach for less control over software and services.

Third-order effects

  • If LTE certification becomes the de facto price of admission for U.S. flagships, global handset makers must design for American carriers first — inverting the historical pattern in which U.S. launches lagged overseas ones.
  • Carrier lab-vetting extends the gatekeeper role Verizon already exercises over services like Google Wallet, concentrating power over which phones and features reach U.S. consumers in the hands of two networks.

The trend: The U.S. carriers' LTE build-outs are turning them into gatekeepers whose lab approval decides whether a global handset maker's comeback attempt even reaches American shelves.