Wireless industry professionals always seem to be wearing hard hats. Whether building new phones, constructing monthly plans or remodeling ever-faulty customer service options, carriers put their construction tools to use daily. But without a good network, there would be nothing else to build upon.
As such, wireless providers spend a lot of time – and money – focusing on the network. Verizon Wireless, AT&T Mobility and Sprint Nextel Corp. have all established 3G networks and now are concentrating on tweaks to those major builds or adding more sophisticated technology like HSPA on established UMTS-based equipment. Indeed, last week Verizon Wireless said it spent $31 million on its new Mobile Telephone Switching Office in Omaha.
A few operators, however, are still in the midst of a nationwide 3G rollout. T-Mobile USA Inc. has only begun to hit U.S. markets with its 3G network. Currently in 21 cities, the carrier said it has six more markets to go to complete its ’08 plan. Beyond the regular challenges of building out a new network, T-Mobile USA has had to deal with clearing the Department of Defense from the spectrum the carrier spent $4.2 billion acquiring during the AWS-1 auction.
Sticking to the script
John Hunter, director of engineering-PMO for T-Mobile USA, detailed the process of building out its network, saying it was a two-fold process.
“In preparation for getting spectrum cleared, [we] invested well over $2 billion in network infrastructure,” Hunter said. “We started the build process back in [2006] shortly after we cleared the spectrum.”
However, the build process ended up taking a bit longer than T-Mobile USA had expected.
“[We] anticipated that we would launch the markets in parallel to getting the spectrum cleared, so it’s taken us a little bit longer than we thought to clear the spectrum,” Hunter said. “It’s been a challenge.”
Kathleen Ham, VP of federal regulatory affairs for T-Mobile USA, weighed in on the spectrum-clearing issue, saying that spectrum was essential for the buildout.
“T-Mobile came to the AWS spectrum [auction] with about half as much spectrum as it has today; AWS allowed T-Mobile to double its spectrum holding,” she said. “We were not capable of launching 3G until we had more spectrum. That was not the case for our competition.”
Today, T-Mobile USA’s focal point likely is how the network behaves when the carrier releases the new Google Inc. Android-platform device, the G1, set to hit stores on Oct. 22. AT&T Mobility experienced initial glitches with the release of Apple Inc.’s extremely popular 3G iPhone; new and data-hungry devices demand an up-to-date, qualified network.
“[We’re] now at a position where we are well on track to meeting our 3G objectives,” Hunter said.
Leap’s buildout plans
Leap Wireless International is another carrier hot for 3G. The carrier has ambitious plans to spread its enhanced network across the U.S., adding new Cricket Communications Inc. stores and service in many new cities. Leap hopes to double its 50 million covered potential customers to 100 million covered pops by the end of 2010. Like T-Mobile USA, most of Leap’s plans for 3G hinges on AWS spectrum and like its larger rival, Leap is at the mercy of the DoD in getting the spectrum cleared.
Greg Lund, spokesman for Leap Wireless, said Leap began putting together all the plans that go along with building out those markets shortly after it won spectrum in the AWS auction two years ago.
Of the challenges Leap faces during deployment, Lund said the hardest part is finding the balance between providing the best network possible without spending too much.
“We will put in a robust network no matter what, but we want to make sure we do it at the right price,” he said.
Market conditions
In terms of the country’s financial crisis, Lund said it is always a concern, but isn’t affecting the carrier directly at this point.
“We have a plan that we haven’t deviated from, but we take into account everything that happens including recent financial issues that have arisen around the world,” he said.
As its 3G deployment plan stays on track, Lund said all the carrier’s operating networks are CDMA2000 1x EV-DO Revision A capable, but not all have been activated.
Of the 50 million pops it’s after, Lund said Leap will hit 36 million of them by the middle of next year. Cities including Chicago; Philadelphia; Washington, D.C.; Baltimore; Minneapolis; Milwaukee; Seattle; and New Orleans are some of the markets set to receive Cricket services and the carrier’s 3G network by the end of 2010.
