Sprint Picks WiMAX for 4G Mobile Network

The 4G network will run on the 802.16e-2005 standard in Sprint’s 2.5 GHz and be capable of 4 Mbps speeds, which Sprint CEO Gary Forsee said is 10 times faster than EVDO networks now in service. Sprint picked partners, too: Intel, an enthusiastic WiMAX supporter, will provide device verification technology, marketing, and presumably chipset know-how; Motorola, another longtime WiMAX champion, will develop single and dual-use handsets and be deeply involved in infrastructure deployment. Samsung will provide most of the network infrastructure, linking Sprint’s current CDMA2000 EVDO network to its planned mobile WiMAX.

Sprint looked closely at other technologies, CTO Barry West said at a press conference on the decision. The Flarion technology “worked really well” but was limited to certain channels, West said. Other standards were too short-sighted or too far off, he said, while WiMAX “fits the bill” because it aligns to Sprint’s spectrum, has strong checks and balances for packet transfer and is “Internet friendly” with a “fantastic ecosystem” supported by Sprint’s partners in the initiative.

Though Qualcomm lost out, it still will benefit from the move, the manufacturer said. It stands to profit from WIMAX technology, because it holds over 200 patents for mobile OFDM, many from its Flarion acquisition, Vp-Mobile Broadband Mktg. Ron Haraldsvik said. Sprint had to choose WiMAX to fulfill FCC deployments requirements in the 2.5 GHz band, because the TDD technology available with WiMAX was the only way to pass 100 million potential customers by the end of 2008, he said.

The announcement had another aim -- to rev up investor enthusiasm after last week’s “lackluster” earnings report, said Jessica Zufolo of Medley Global Advisors. The company reported lagging revenue and changed its guidance on profits downward amid a problem with high churn (CD Aug 4 p6). Sprint wants to show shareholders it’s serious about long- term growth, though “it remains to be seen whether WiMAX takes off” for them, she said. More will be known on that front after the AWS auctions play out, starting today (Wed.), she said.

WiMAX will “take off,” Susan Eustis of Wintergreen Research said, calling it technologically superior to and a better investment than the fiber deployments for which Verizon has occasionally been slammed by investors. With WiMAX, Sprint can roll out on a city-by-city basis with lower cost per subscriber, she added, and the announcement potentially positions Sprint far ahead of their rivals, while fiber only brings Verizon and AT&T into competition with their cable competitors.

Going to WiMAX is also a way to get back into the home and office after spinning off Embarq, said analyst Jeff Kagan. He said the deployment would be a way to hedge its bets after going strictly wireless. Zufalo said potential savings on the backhaul side are another selling point for investors.

The 4G move was enabled by key regulatory victories in recent years, said Wireless Communications Assn. (WCA) Pres. Andrew Kreig. These include a “multiyear effort” to have the 2.5 GHz band revised for widespread deployment, Kreig said. WCA favors standards-based broadband wireless technology like WiMAX, which has emerged from “the ITU, the IEEE, the WiMAX Forum, the European Telecommunications Standards Institute and other relevant bodies,” he said.