Sprint Ramps Up 4G Deployment

Sprint Nextel (S - Analyst Report) officially launched its 4G wireless broadband services Monday, In line with expectations, in the markets of Atlanta, Las Vegas and Portland. This represents a significant expansion initiative by the third-largest US wireless carrier. The company’s 4G service is being offered under the "Sprint 4G" brand and leverages the WiMax (a mobile broadband technology) network operated by Clearwire Corp. (CLWR - Snapshot Report).

Subscribers to Sprint’s 4G services across these new markets can now enjoy lightning fast mobile broadband experience by paying just $10 over their existing 3G wireless data plans. This is enabled by the nation’s first dual-mode (operates on both 3G and 4G networks) mobile broadband modem which was launched by the company last December. The 4G WiMax network offers network speeds that are 3-5 times faster than the existing 3G deployments.

Sprint is leading the 4G wave in the U.S. with aggressive network-deployment plans through 2010. It became the first national carrier to launch a commercial service in Baltimore last October. The company plans to expand in 17 other US cities in 2009, thereby covering at least 25 markets by the end of the year.

While Sprint’s 4G WiMax is expected to play a critical role in its survival in the wireless market, its leadership in 4G is being threatened by the aggressive deployment plans of major peers. Verizon (VZ - Analyst Report), for example, recently commenced 4G trials in Boston and Seattle and is scheduled to launch commercial services in early 2010 (as opposed to mid-to-late 2010).

We believe Sprint’s WiMax network will be significantly challenged next year by Verizon’s 4G deployments in overlapping markets. This is because Verizon’s 4G network, based on the Long-Term Evaluation (LTE) wireless broadband technology, has demonstrated better speeds in technical trials than WiMax. Moreover, the other Tier-1 wireless carrier AT&T (T - Analyst Report) is expected to commence 4G LTE trials in 2010, thereby heating up competition further.

Comments

[Aryamehr:]

ATT is at least two years behind Sprint 4G, which should give Sprint a critical advantage. The issue is can they leverage the 4G platform to their advantage, since they are the vanguard in this movement. I believe so when you consider the dream team that supports them; Intel, Google, Time-Warner, Comcast and Cisco.

Aug 18 12:08 PM

[Aryamehr:]

It appears that another 800 gorilla, Samsung, also joinned the dreamteam.

Aug 18 12:10 PM

[Geddy:]

ATT is only behind if you're just referring to LTE deployment. The reasoning behind this is their very simple upgrade to HSPA+ will already be faster than WiMax so they're in no hurry to jump to LTE. They will have the upgrade fully deployed by mid-year in ALL their markets (as opposed to piece meal by Clearwire/Sprextel) of 2010.

Aug 18 01:29 PM

[Nextel Acce...:]

Sprint needs to take advantage of being first to market. They have about a year to do it....

Aug 19 08:27 AM

[Prescience:]

Sprint's 4G in Atlanta kills ATT, there is no ands if and buts about who is faster, it is blatantly obvious. I recently added Sprint as our family carrier and I am glad I did this. Our savings are substantial and the only reason most of us haven't made the switch is because we are unaware of the real facts. On Post-Paid subscription Sprint gives you the best bang for your money and on Pre-Paid Boost mobile is by far the best bang for your money. What I like about Sprint is that they don't have any hidden charges and the same is true for Boost Mobile.

Aug 21 10:32 AM

[Geddy:]

It beats AT&T now...but VERY soon they'll be rolling out HSPA+ which will eclipse Clearwire/Sprextel, and be available nationwide and not just in select markets. It will also be available via smart phones which WiMax is not available on yet nor anytime soon...your choice I guess.

Aug 21 02:13 PM

[goldcoast04:]

I'm watching this 4G unroll daily. With 400 shares of clearwire in my portfolio I have got to stay on top of this.. Made money on Clearwire stock 3 times now. Buy low sell higher!!

Aug 25 12:35 PM

[Geddy:]

@goldcoast04-How in the world have you made money on their stock? I don't believe it has been much above $7 since it sold...unless I guess you bought when it was in the $3 range.

Aug 26 01:27 PM