With much fanfare at this year’s Comdex electronics show in Las Vegas and multi-page advertisements in nationwide newspapers, AT&T Wireless Services Inc. launched its high-speed EDGE-based service last week, claiming it now operates the highest-speed nationwide wireless data network in the country.
The launch followed Cingular Wireless L.L.C.’s EDGE launch in Indianapolis earlier this year and beat T-Mobile USA Inc., which has yet to set a timetable for providing EDGE commercial services, although announcing its intentions to do so early last year.
While network speeds have always been a flexible subject that have occasionally gotten carriers in trouble with industry observers, AT&T Wireless is aggressively highlighting the throughput potential of its network, claiming average network speeds between 100 to 130 kilobits per second.
“EDGE gives customers a much-enhanced wireless experience, providing data speeds dramatically faster than `so-called’ 3G services offered by other wireless companies,” said John Zeglis, chairman and chief executive officer of AT&T Wireless. “With EDGE, our customers now have access to the fastest national mobile wireless connections and advanced services in North America. That puts us way ahead of the wireless pack, and it gives business customers another compelling reason to be with AT&T Wireless.”
The carrier noted EDGE capabilities would be available to the 215 million potential customers currently covered by its GSM/GPRS network, including 6,500 cities and towns and along more than 30,000 miles of major highways. AT&T Wireless also said it’s offering EDGE capabilities on its network in Puerto Rico and Bermuda and plans to deploy the technology throughout its Caribbean coverage areas in the near future.
AT&T Wireless’ Canadian partner Rogers Wireless Inc., which operates as Rogers AT&T Wireless, contributed more international flair to the EDGE announcement, saying it has begun EDGE trials in the Greater Vancouver area and it expects to roll out the enhanced GPRS services across Canada beginning next year.
In support of its launch, AT&T Wireless introduced a Sony Ericsson GC-82 modem card, which the carrier used to provide the claimed network speeds, and the Nokia 6200 handset, which has slower network speeds due to time-slot limitations. Both devices are also backward compatible with GPRS technology, which customers could encounter when traveling through a roaming partner’s network.
Additional devices are expected to be launched next year, with Nokia reiterating claims that most of its GPRS handsets delivered next year will include EDGE capabilities.
While AT&T Wireless claims industry-leading transmission throughput with peak speeds up to 200 kbps, RBC Capital Markets noted early testing of the EDGE network provided average speeds of 111 kbps that occasionally dropped down to GPRS-like 35 kbps under poor signal conditions. Similar testing done using Sprint PCS’ 1x-based Vision service provided average speeds of 101 kbps.
Analysts pointed out that while EDGE has at least leveled the playing field for AT&T Wireless in regard to competing with 1x networks, it could have a tougher time against higher speed 1x EV-DO services that have provided in excess of 350 kbps of throughput in testing.
“The speeds are impressive, but they still lag behind Verizon Wireless’ EV-DO network, which is about three times faster,” said Adventis Corp. principal analyst Michael Grossi. “Sure EV-DO is only available now in a few markets, but once [Verizon Wireless] expands the service nationally, they will have a substantial leg up.
AT&T Wireless acknowledged the speed advantages of EV-DO, but noted the lack of coverage and uncertain future made the comparison irrelevant. AT&T Wireless also said it is still moving ahead with plans to launch even-faster UMTS services in four markets beginning next year as part of its agreement with Japanese operator and financial investor NTT DoCoMo Inc.
“That’s our 3G plan. That’s our 3G goal,” Zeglis said. “That’s our end goal to have a full UMTS network.”
Analysts also voiced concern over network quality issues regarding AT&T Wireless’ GSM/GPRS network, which was originally installed using the carrier’s PCS spectrum and has only recently seen coverage improvements using its more coverage-friendly cellular spectrum.
“We note the new EDGE network will suffer the same shortcomings of [AT&T Wireless’] current GSM/GPRS network, which has received poor reviews,” said SG Cowen telecommunications analyst Tom Watts, who added the carrier is still working through a software glitch that has hobbled AT&T Wireless’ ability to activate customers on its GSM-based network since Nov. 1.
Despite an admitted four-times improvement in network speeds compared with its GPRS service, AT&T Wireless said it would offer the same pricing plans as its slower network, including unlimited access for $80 per month, which is similar to what other carriers are offering for unlimited access to their wireless data networks.
The combination of higher network speeds and flat-rate pricing is expected to bolster AT&T Wireless’ standing among business users, with Zeglis noting business customers have been waiting for a nationwide wireless data offering that provides more than 100 kbps of throughput.
Earlier this year, Sprint PCS launched an advertising initiative targeting AT&T Wireless, which Sprint PCS said it perceived as the leader in serving business customers. The advertising hyped the speed advantage of Sprint PCS’ CDMA2000 1x-based network compared with AT&T Wireless’ GPRS-based network, as well as Sprint PCS’ greater network coverage. Sprint PCS, which did not return calls regarding changes to its advertising initiative by RCR Wireless News press time, is still comparing its 1x network against AT&T Wireless’ GPRS network on its Web site.
AT&T Wireless added that while the EDGE network initially is targeting the business market, the carrier thinks the higher network speeds also will serve the consumer market with faster access to its recently revamped mMode offering and wireless imaging service.
Analysts noted consumer uptake of EDGE services would probably have to wait until a wider selection of devices becomes available.
“A lack of handset selection will limit uptake by the consumer market,” said Adventis’ Grossi, who added that despite the limited initial device support, the launch of higher-speed wireless data capabilities is good for the industry in garnering increased awareness and customer usage.
“It’s all goodness,” Grossi said.
