While large wireless operators are more than happy to discuss their plans for next-generation wireless services, some of the small- to mid-sized carriers seem to have let the idea of high-speed networks fall through the cracks of providing services to their customers. Even though those carriers are not making a big hoopla about their plans, don’t think they are sitting back waiting for the big operators to lead the way.
Bellevue, Wash.-based Western Wireless Corp. is taking the most ambitious approach. The carrier, which has always been aggressive in rolling out advanced services for its customers, announced last week plans to introduce 1x services on its network within the next 60 to 90 days. Western Wireless serves more than 1 million subscribers in 18 states west of the Mississippi River.
In keeping with its pioneering spirit, the carrier is bucking the trend to initiate high-speed services in its bigger markets and will instead introduce the service in the small town of Terry, Mont., with a population of less than 1,000.
“Our network covers parts of Montana, and we are a rural American carrier,” said John Tedeschi, vice president of technology development for Western Wireless. “We chose Terry because we wanted to prove we could provide these services to our markets. We looked around our network and Terry popped up. After some investigation of the market, we found Terry would be a great market to launch our 1x services.”
Tedeschi said most of the residents of the small town were shocked and surprised that Western Wireless would offer high-speed services in their tiny hamlet.
“The demand is there,” Tedeschi explained. “I think we will all get a shock when we see what the demand really is.”
Little Rock, Ark.-based Alltel Corp., which is currently the sixth-largest wireless carrier in the country with more than 6 million subscribers, plans to launch cdma2000 1x services on its CDMA network by the end of the year. While Alltel provides nationwide coverage for its customers, the carrier’s markets are concentrated in the Southern states.
“We’re trialing 1xRTT in a laboratory environment in our labs in Raleigh,” said Kevin Beebe, communications group manager for Alltel. “Our expectations would be to roll out services in late fourth quarter of this year to certain markets, with plans to roll out commercial systems next year. By next year, phones will be more available and software will be ready to roll out.”
Beebe said Alltel plans to spend between $20 million and $30 million this year alone on its 1x network.
In addition to offering high-speed wireless services to its customers, Alltel also will benefit from the additional voice capacity that comes with CDMA 1x services, an advantage Beebe noted should not be overlooked.
“I believe 1x technology will be driven by capacity needs rather than applications needs,” Beebe explained.
Another possible advantage for Alltel in rolling out its 1x network is its wide ranging roaming agreement with Verizon Wireless. The carrier’s current roaming agreement is thought to include reciprocal inbound roaming rates of between 4 cents and 7 cents per minute. While high-speed data services could provide potentially higher rates, Alltel does not expect to sign a new agreement with Verizon specifically to cover 1x.
“I don’t think there will be any different roaming agreements needed for 1x, since packet technology is just minutes on the network,” Beebe said. “I don’t see roaming minutes going up.”
An interesting connection between Alltel and Western Wireless is that they are introducing high-speed networks based on CDMA technology. For Alltel, it was an obvious choice because roughly 80 percent of its footprint is using CDMA. But for Western Wireless, which uses TDMA, CDMA and AMPS on its networks, the choice bodes well for CDMA supporters.
“Since we use CDMA, TDMA and AMPS on our networks, we like to think of ourselves as a technology-neutral carrier, and just want to provide the best service for our customers,” Tedeschi said. “The main advantage of CDMA 1x was its ability to do packet data at 144 kilobits per second. If you look at current switched offerings at 9.6 (kbps) from ourselves and other carriers, this is so much faster.”
Analysts also point out that with most carriers already close to the limit of their current spectrum holdings and the lack of any additional spectrum being made available in the foreseeable future, 1x’s small spectrum requirements should appeal to carriers.
The CDMA path also may be making its presence felt at U.S. Cellular Corp. Currently, U.S. Cellular operates its network using both TDMA and CDMA technology, but a recent license purchase involving four CDMA markets has analysts looking for the carrier to possibly go CDMA for its entire network in the future.
“The fact that four of the 10 licenses, which are being added to USC’s Midwest TDMA cluster, are built out with CDMA technology also suggests that U.S. Cellular might be heavily leaning toward a CDMA technology overbuild of its TDMA network,” said Raymond James & Associates Inc. in a recent research note.
U.S. Cellular did not respond to repeated requests for an interview regarding its future plans before this story went to press.
As next-generation services come closer to reality, expect the somewhat muted responses from smaller carriers to grow as the demand echoes from their customers.
