Sprint Corp.’s months-long high-speed wireless data tease came to an end last week as the company finally announced the launch of its CDMA2000 1x EV-DO network. The company said the service would be available in business districts and airport locations in 34 markets by the end of the month. The initial launches will include 25 of the nation’s top 50 markets with plans to cover 45 of the top 50 markets by early next year.
Sprint said the EV-DO network would cover approximately 92 million potential customers in what it termed “14 broadly deployed metropolitan areas” in the third quarter, with another 36 metro areas launched during the fourth quarter and 143 million pops covered by the end of the year. Sprint added that it was still on track to cover at least 200 urban and suburban markets and about 60 metro areas by early 2006.
Sprint began providing initial EV-DO coverage maps on its Web site last month with a list of 60 markets it expected to offer service in by early 2006, and told RCR Wireless News earlier this year that it expected to launch EV-DO services by the end of the second quarter.
The service initially will target business customers using a pair of recently launched PC cards from Sierra Wireless and Novatel Wireless. Both cards also are compatible with Sprint’s nationwide 1x data network. Sprint added that it plans to introduce EV-DO handsets and applications for consumers and business customers during the fourth quarter.
Pricing for the service begins at $40 per month for 40 megabytes of data transmission, with a price cap of $90 for per-megabyte customers. Sprint also will offer unlimited access for $80 per month, which is the same price it charges for unlimited access to its 1x data network.
Sprint said the EV-DO network would provide average network speeds of between 400 kilobits per second and 700 kbps with peak speeds of up to 2 megabits per second.
RBC Capital Markets’ telecommunications analyst Jonathan Atkin noted that initial testing of Sprint’s EV-DO service showed network speeds of between 350 kbps and 750 kbps with latency of around 200 milliseconds. Atkin noted the speeds were marginally faster than what were recorded on Verizon Wireless’ network during its initial launch.
Atkin had previously tested similar high-speed wireless broadband services offered by AT&T Wireless Services Inc.’s UMTS network, which produced speeds of around 300 kbps, and of Nextel Communications Inc.’s trial of Flarion Technologies Flash-OFDM service, which produced speeds of nearly 1 megabit per second.
Sprint said the EV-DO service would tie-in with its ongoing Wi-Fi initiative that includes more than 19,000 hot-spot locations, as well as its nationwide 1x network.
“Through network convergence, customers can get all the access solutions they need by harnessing the benefits of Sprint’s diverse wireless networks,” said Len Lauer, Sprint president and chief operating officer.
Sprint also recently announced plans to trial high-speed wireless broadband services using a pre-WiMax standard with Motorola Inc. using Sprint’s 2.5 GHz spectrum. Nextel also has announced plans to trial IPWireless Inc.’s TD-SCDMA technology using its 2.5 GHz spectrum.
Analysts have noted that Sprint/Nextel could use the 2.5 GHz band to launch a disruptive wireless broadband network that would provide superior data transmission to current voice-centric technology.
Sprint originally planned to bypass EV-DO technology in favor of its higher-speed and more spectrally efficient EV-DV evolution, but changed its mind last year following rival Verizon Wireless’ aggressive EV-DO launch and concerns that EV-DV would not be available until at least 2007. Sprint said it planned to spend up to $1 billion on the EV-DO launch.
Following a rash of recent network expansions, Verizon Wireless said it offers EV-DO services in more than 50 major metro areas-and 33 of the top 50 markets-covering 119 million pops, with plans to cover more than 150 million pops by the end of the year.
Verizon Wireless offers both its business-centric BroadbandAccess EV-DO service, which is available using a variety of PC cards for $80 per month for unlimited access, as well as its consumer-oriented Vcast EV-DO service, which is available on four different handsets for $15 per month.
Analysts noted the Sprint EV-DO launch should prove a compelling alternative to Verizon Wireless’ service, which today is the only widely available high-speed wireless broadband service. Both carriers offer EV-DO service in 20 common markets, with three markets also served by Cingular Wireless L.L.C.’s UMTS network.
“Competition is always good,” said Roger Entner, vice president of wireless telecom with Ovum. “This should force both companies to improve the product as well as lower prices, which is good for consumers and adoption.”
Entner added that while both Verizon Wireless and Sprint will be using the same technology to support their respective high-speed wireless data services, he expects them to market the services differently.
“Verizon has a six- to nine-month head start in deployments, and I expect they will use that as a marketing advantage in that they provide deeper coverage in their markets,” Entner said. “Two chefs might use the same apples, flour and sugar to make apple pie, but its how they mix them and what additional ingredients that they add that determines how the apple pie tastes.”
Sprint’s launch could also put more pressure on other wireless operators that have yet to aggressively move into the high-speed wireless data space.
Cingular Wireless, which inherited 6 UMTS markets when it acquired AWS last year, said it remains on track to launch UMTS/HSDPA services in between 15 and 20 markets by the end of the year with plans to cover most of its network by the end of 2006.
T-Mobile USA Inc. continues to lag behind its competitors in offering wide-area next-generation services, as the carrier is still working on deploying EDGE services. The carrier also has stated it will be at least two years before it has enough spectrum capacity to launch a UMTS-based network.
Raymond James & Associates telecommunications industry analyst Ric Prentiss wrote last week in a research note that T-Mobile USA might be better served bypassing a traditional 3G network launch and moving ahead with a possible 4G technology similar to what Sprint and Nextel are looking to do with their 2.5 GHz spectrum.
“[T-Mobile USA] has experience with Wi-Fi and could be an interesting partner for cable companies looking to add wireless voice and data services to their bundles,” Prentiss wrote. “We think 4G could be a fixed wireless solution capable of competing with cable modems and ILEC DSL service for the high speed pipe into homes and may include the evolution to WiMAX.”
