By Greg Bensinger Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- More than a year Verizon Wireless debuted its mobile broadband network known as 4G LTE, just 5% of its customers have switched to the faster data network. The company heavily promotes the service, which reaches 200 million Americans, and has rolled out about 20 smartphones and tablets that connect to the network, such as the Samsung Electronics Co. (005930.SE, SSNHY) Galaxy Nexus. After investing in its 3G network ahead of the Apple Inc. (AAPL) iPhone launch last year, the carrier is focused on drawing customers to its LTE network, said Fran Shammo, chief financial officer of Verizon Communications Inc. (VZ), which co-owns the wireless unit with Vodafone Group PLC (VOD.LN, VOD). "It is very critical for us, and we're playing a very delicate balancing act here that I don't want to spend any more money on my 3G network," said Shammo at an investor conference Monday. He said a current promotion offering twice the monthly data allotment to 4G LTE customers at half price would run for two months. Verizon will face additional competition this year from AT&T Inc. (T) and Sprint Nextel Corp. (S), which are building out their own 4G LTE networks. Carriers are trying to convert customers to the speedier network because it requires less capacity to deliver data and can free up constraints on their older 3G and 2G networks. At the end of last year, the carrier had 87.38 million contract customers, suggesting about 4.4 million 4G LTE customers. Separately, Shammo said Verizon's video-streaming joint venture with Coinstar Inc.'s (CSTR) Redbox DVD rental unit will debut in August. Verizon holds a 65% stake in the service, which aims to compete with Netflix Inc. (NFLX) in offering movies and other video content. Shammo said he was confident regulators would approve Verizon Wireless's plan to buy $3.9 billion worth of wireless airwaves, or spectrum, from a group of cable television companies that includes Comcast Corp. (CMCSA) and Time Warner Cable Inc. (TWC). The deal has been opposed by T-Mobile USA, MetroPCS Communications Inc. (PCS) and some smaller carriers. Verizon Communications recently shed 2 cents to $38.12. -By Greg Bensinger, Dow Jones Newswires; 212-416-4676; greg.bensinger@dowjones.com
