Editor’s Note: This article is an excerpt from RCR Wireless News’ May Special Edition, “Enabling the Mobile Revolution: Mobile Chips, Devices and Accessories.” The 80-page special edition is available here.
One of the first questions asked in 2008 when Clearwire Corp. announced its formation using spectrum from Sprint Nextel Corp. and financing from cable television operators was how were these separate companies going to market and sell competing services using the same network.
Now that Clearwire’s WiMAX network appears to be hitting a critical mass in regards to coverage, 40 markets up and running to date on the way to 120 million potential customers covered by the end of the year, we thought we would take a look at how those companies are positioning their WiMAX-based mobile data services.
It appears at first glance that the companies are staying with their original plans – Clearwire is touting its service as a digital subscriber line replacement; Sprint Nextel is leveraging its 3G network assets and touting the faster speeds associated with WiMAX; and the cable partners are adding WiMAX to their core cable bundles.
Working online, RCR Wireless News tried to order service for our offices in Austin, Texas, so we could see how the various operators marketed their services. Here is what we found:
Sprint Nextel
Sprint Nextel has been very aggressive on marketing its “4G” WiMAX service that now includes both wireless modems, wireless hotspots and a smart phone. For those looking for a pure mobile data experience, Sprint Nextel offers seven wireless modems or wireless hotspots, three of which can access the carrier’s CDMA-based 3G network as well as Clearwire’s WiMAX network. Those dual-mode devices range in price from free to $100 depending on model.
The carrier offers one service plan for customers looking to access both networks that charges $60 per month unlimited use of the WiMAX network and a five gigabyte cap for 3G network usage. A $36 activation fee is charged for in-store or phone orders, but is waived for online orders, and a two-year contact is required.
The acquisition process appears to be straight forward with no bundling of service required or discounts noted for purchasing other services.
Another option being offered by Sprint Nextel is accessing the WiMAX network using its recently introduced HTC Corp. Evo 4G smart phone. The device retails for $200 with a two-year contract and requires a traditional service plan that begins at $70 per month as well as a $10 surcharge for accessing the WiMAX network. That $80 total does include unlimited data access to the carrier’s 3G and WiMAX service, unlimited messaging and GPS navigation, unlimited voice calling to other mobile devices and for calls after 7 p.m.during the week and all weekend, and 450 anytime voice minutes. For another $30 per month, customers can use the device as a wireless modem providing unlimited WiMAX data access and 5 GB of 3G data access.
Time Warner Cable
Buying service from Time Warner Cable Co. was a little trickier. The cable provider is touting its Road Runner Mobile National Elite Plan in the Austin area, touting 3G and 4G coverage for $50 per month with a one-year contract. The service also requires a $35 activation fee. However, Road Runner Mobile service must be purchased with another Time Warner product. Other Time Warner options included cable TV, digital phone service and cable internet service.
Strangely, Road Runner Mobile, which is featured prominently on the home page, is not included in the bundled offering, nor is it an option when trying to add another service. However, upon calling a Time Warner customer service representative in the area for clarification, the representative said that we needed to access the business department since we were not listing a home address, but a business address. Business customers also need to buy Road Runner Mobile as part of the Time Warner business bundle. At this point, we decided to stop bothering the customer service reps.
Clearwire
At Clearwire, the Austin address was available for its Clear-branded “On the Go” plans but not available for in-home coverage yet. Likewise, the carrier has an option called “Clear Voice” on its page, but is not yet offering the service.
The On the Go service plan runs $40 per month and includes unlimited access to the carrier’s WiMAX network. Customers can add 5 GB of data access to Sprint Nextel’s 3G network for an additional $15 per month.
Users must buy a USB dongle, which start at $70. Those wanting to enhance their coverage with 3G services using Sprint Nextel’s network must pay an additional $15 per month. Clearwire waives any activation fees with a two-year contract, although month-to-month users must pay a $35 sign-up charge.
All three options look to be going with the same coverage maps for service as well as touting similar network speeds: up to 3 megabits per second on the uplink and 6 Mbps on the downlink.
