Sprint Nextel Unveils 'G-Normous' Wimax Plans for the US

August 09, 2006

US carrier Sprint Nextel, along with the help of Motorola, Samsung, and Intel, announced that the carrier will adopt the 802.16e mobile WiMAX standard as its "4th Generation" broadband technology, the first nationwide wireless infrastructure for mobile communications. The company will continue to use its current CDMA networks that are in place today for voice services, and will use the 4G network exclusively for high-bandwidth data services.

Sprint will deploy WiMAX gear to leverage its 2.5GHz spectrum holdings, which covers 85 percent of the top 100 U.S. markets. The plan is to conduct trials next year, with commercial releases expected in 2008. The rollout will complement, not replace, Sprint's existing EV-DO network.

The network will use both Motorola and Samsung network infrastructure, along with Motorola multi-mode handsets and access devices, and will be powered by technology partner Intel’s next-generation 802.16e Centrino chip.

Gary Forsee, Sprint's CEO said that Intel will also be supplying equipment to build the network while Motorola and Samsung will develop WiMAX-compatible phones and mobile devices.

Sprint expects to spend about $1 billion on the initiative in 2007, and between $1.5 billion and $2 billion in 2008.

Forsee didn't specify to what extent the other companies might help offset Sprint's costs, saying those details will come later this year when Sprint provides financial guidance for 2007.

The announcement comes hard on the heels of 2.5GHz operator Clearwire Corp.'s announcement last month that it would convert its proprietary BWA gear to WiMAX. It scored $900 million in financing from Intel and Motorola.

"Clearwire and Sprint will be able to leverage each others' 2.5GHz spectrum holdings to increase their coverage," said Philip Solis, ABI Research senior analyst. "Even more important, the satellite TV providers will benefit from a developing WiMAX ecosystem in the United States as they consider their options to leverage a WiMAX network."

With this announcement, Sprint Nextel is hoping to take an early lead in the deployment of 4G data services. The company plans on rolling out 4G services in select test markets by the end of 2007, with an official launch of its services to an approximate 100 million people during 2008 with the proposed ability to download 10mns of video in about 100 seconds.

By all accounts, the big winners here are Motorola and Intel. This announcement along with the Clearwire investment announcement last month signals that Motorola and Intel are the indisputable powerhouses behind WiMax and that this technology will now certainly gain a foothold in the US as well as abroad.