I switched to AIO and I am wondering if they are using ATT LTE. If they are will rooting my Nexus 4 allow me to access the band of LTE that they use?
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Yes, Aio uses AT&Ts network, including LTE.
If you live in or spend much time in Phoenix, Raleigh, San Juan, Los Angeles, Las Vegas, Oklahoma City, Dallas, Chicago or Charlotte, it might be worth it, these are the major areas where AT&T has Band 4 LTE, there are also a handful of smaller areas, mostly ones repurposed through acquisition that had Band 4 LTE previously.
Note you will see more battery usage, how significant varies. If you are in an area without AT&T Band 4 support and you flash the LTE radios and keep them active you will see significant battery drain.
To be honest, in real world usage I don't see a significant improvement in performance between HSPA+ and LTE, but that can vary a lot by the area.
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Like I said, it all depends on your market in some areas it'll be better in some areas worse. In New York City I do not believe that AT&T has band 4 LTE so it really wouldn't be of any benefit it all, in fact, it would be a detriment because it would just cause more battery drain for no gain whatsoever.
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Here in Chicago I get let with AIO. it's throttled to 8 mbps but my bars are usually full. For 55a month I'm happy with it.
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