Microsoft’s Surface 2 is now equipped for LTE connections — but still must compete with iPad Air.

Microsoft on Monday announced a version of its ARM-based Surface 2 tablet equipped for 4G LTE connectivity. The brand new device is otherwise a twin of the WiFi-only model, and may be available March 18 for $679.

The LTE-equipped Surface 2 comes with 64 GB of storage. It will become offered unlocked but is meant to be used within the US with AT&T’s LTE network. AT&T should not offer any subsidized Surface options, and it’ll be the customer’s responsibility to enroll in a compatible plan. The device also supports GSM micro-SIM cards but will work only on specific bands: 1, 2, and 5 for 3G, and four, 7, and 17 for 4G LTE.

[Is Microsoft’s Surface 2 the best tablet for you? Read Microsoft Surface 2: Hands-On Review.]

At only two pounds, the skin 2 has always been highly portable. WiFi networks still aren’t ubiquitous, however, and without an LTE option, the outside 2 is arguably less mobile-friendly than competitors which include the iPad Air. With mobile broadband now integrated, Microsoft hopes more on-the-go workers will consider the skin 2’s productivity-oriented features, reminiscent of native support for Microsoft Office, an integrated kickstand, and optional first-party keyboard accessories.

LTE is a notorious battery hog, but Microsoft claims the hot Surface 2 achieves ten hours of battery life. Just like the original 64 GB Surface 2, which sells for $549, the LTE-enabled model incorporates a 10.6-inch full HD display, NVIDIA Tegra 4 processor, USB 3.0 slot, 3.5 MP front-facing camera, and 5 MP rear camera.

All versions of the skin 2 run Windows RT 8.1, such as Office Home & Student 2013 RT and Outlook 2013 RT but doesn’t otherwise support desktop applications. Surface devices also include free Skype calling for 365 days to landlines in additional than 60 countries, unlimited Skype WiFi for 12 months at millions of worldwide hot spots, and 200 GB of free OneDrive cloud storage for 2 years.

Microsoft said the outside 2 with LTE would be available inside the US through its retail and online stores, in addition to via Best Buy. For reference, a cellular-ready 64 GB iPad Air is $829, though Apple offers LTE models with smaller SSDs for as low as $629. Nokia’s Lumia 2520 tablet, which also supports 4G connectivity, is offered only in a 32 GB configuration and sells for $499 and not using a contract and $399 with a two-year agreement.

The 2520 arguably offers the proper baseline for handicapping the hot Surface 2’s prospects; in practice, the Microsoft tablet’s industrial-inspired metal build handles differently than the Lumia’s plastic shell, but aesthetics and ergonomics aside, the devices are very similar on paper. The brand new LTE-enabled Surface 2 can only help Microsoft attract new customers, but because nobody has reported exploding 2520 sales, it’s hard to visualize the hot device will dramatically improve Microsoft’s tablet performance.

So far those sales has been modest. In January, Microsoft reported Surface revenue of $893 million, greater than double the former quarter’s haul of $400 million. However the company’s SEC filing revealed the outside line still lost millions of bucks. Moreover, the revenue growth coincided with significant decreases in first-generation Surface model prices, suggesting that even though sales volume increased, per-unit margins dropped.

Microsoft will soon release an update for Windows 8.1 designed to make the touch-oriented OS more palatable to users of non-touch hardware. While this tactic could help the sagging PC market, Microsoft hasn’t telegraphed additional steps it’s going to take to jumpstart its floundering tablet efforts. Recent online reports that cite supply chain rumors claim Microsoft will soon debut a Surface Mini with an 8.5-inch touchscreen, but such sources generally have spotty track records, so it is still seen when or if new Surface models might appear.

Beyond the skin line, Windows slates have struggled typically to carve out a distinct segment; research firm Gartner calculated this month that Windows tablets accounted for less than 2.1% of the market in 2013, even worse than the three.4% share IDC estimated in December.

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Michael Endler joined InformationWeek as an associate editor in 2012. He previously worked in talent representation within the entertainment industry, as a contract copywriter and photojournalist, and as a teacher. Michael earned a BA in English from Stanford University in 2005 … View Full Bio

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