We've just confirmed that although the new iPad has incredibly fast download and upload speeds over LTE (Check out our iPad review), FaceTime video chat still won't work directly on the 4G network. As you can see in the positively vexing screenshot above, attempting to initiate a FaceTime call over LTE fails out with a message exhorting you to connect to a Wi-Fi network. It's the exact same behavior that iOS devices on 3G networks have always exhibited, but it's doubly frustrating as Verizon's LTE plans for the new iPad include Wi-Fi hotspot functionality at no extra cost. In other words, you could easily initiate a Wi-Fi hotspot from your new Verizon LTE iPad and use it to successfully make a FaceTime call from an iPhone — likely with little to no degradation in video quality as compared to a Wi-Fi connection, since LTE is so fast. More to the point, using the device as a Wi-Fi hotspot seems just as likely to rack up data as a FaceTime call, which has been estimated to use around 3MB per minute.
When Steve Jobs introduced FaceTime for the iPhone 4 in 2010, he said that "FaceTime's going to be Wi-Fi only in 2010. We need to work a little bit with the cellular providers to get ready for the future, so we're Wi-Fi only in 2010." Despite many rumors since then, we've yet to see Facetime work natively over cellular networks. Apple had no comment on FaceTime over LTE when we asked, but we're still waiting to hear from AT&T and Verizon, who are the more likely forces behind the restriction — we'll let you know what they say.