Sprint weighs more technology options in bid to redefine the US telco
Sprint seems to be enjoying its familiar role as kingmaker, dangling hopes of its massive next generation network deal in front of a widening array of candidates. While it assesses the technology that will underpin its build-out of a national 2.5GHz broadband wireless network in 2007-8, its key criterion will be strong support for multimedia, and the ability to scale up these capabilities to support future, hardly dreamed-of applications.
Sprint, in its quest to take on the Goliaths of US telecoms, Verizon and AT&T, is relying on its ability to create a more advanced, highly differentiated content experience, and is building up key partnerships to that end, notably with the cablecos. Now it is looking to add gaming device manufacturers such as Sony to that list as those vendors, themselves, aim to broaden the remit of products such as the Playstation Portable from games consoles to all-purpose multimedia portals.
In all this, Sprint is thinking more like a Korean operator than a US one. Earthlink-SKT joint venture Helio may have promised to be first to bring the Korean mobile broadband experience to the US, with its soon-to-be launched MVNO service (which uses the Sprint network), but Sprint will accelerate the trend significantly because of its plentiful supply of spectrum, adding the national 2.5GHz licenses to its existing 3G network.
One benefit of the 2.5GHz holdings which include far greater bandwidth than Verizon and AT&T have in their own, so-far underused 2.3GHz licenses, with Sprint owning an average of 98MHz of spectrum in each major market, compared to 36MHz in 1.9GHz cellular is that there is a wide choice of technology optimized for the band. Although most of these options are emerging, and so carry risk, they also give Sprint the opportunity, as the worlds largest planned 2.5GHz implementer, to mould the technologies it chooses to suit its particular requirements as the Korean operators did with the Qualcomm platforms.
So far, its chief technology officer Barry West top of every network vendors dinner party list and its VP of innovative technologies, Ali Tabassi, are coy about the platform that is likely to win the prize, increasing Sprints ability to make the suppliers dance through hoops in terms of performance, and be flexible on pricing.
Flash-OFDM:
In trial are various flavors of WiMAX, including Samsungs pre-802.16e Wi-Bro technology and WiMAX from Motorola; IPWireless TD-CDMA network, which has the advantages of spanning the 3G and 2.5GHz bands and coming with a newly created mobile television platform, TDtv; and Flarions Flash - OFDM, now owned by Qualcomm.
A few weeks ago Sprint was dangling its
favors in front of IPWireless, sounding highly
enthusiastic about the companys offering; now it is tantalizing the
vendors further with praise for Flash-OFDM. Nextel had carried out the
most extensive commercial trial of Flarions technology prior to its
merger with Sprint, but once that occurred, the trial ended and it was
assumed Flash-OFDM was out of the running. Now Tabassi is telling
analysts that the Flarion technology has, so far, been the most
impressive performer among the contenders.
While ownership by Qualcomm might be seen as a negative by some players, given the companys iron control of its technologies, it would actually be a benefit for Sprint, especially in a situation where the operator has the negotiating upper hand. Sprint was one of the original operators that enabled Qualcomms CDMA to gain traction, and the two companies have worked together closely over the years with, despite some tensions, the balance of the relationship being positive to the cellco. With Qualcomm likely to integrate Flarion into abroader next generation network, which will also incorporate integration with its MediaFLO television platform and the new evolutions of CDMA EV-DO, Sprint would gain a technology with a clear ecosystem and future path, eliminating the risks of working with a start-up, and one with links to its existing network based on EV-DO.
There will also be the option of using one of the 3G technologies in 2.5GHz either the upcoming multicarrier version of CDMA EV-DO, or even W-CDMA with its growth path to next generation LTE. Though these technologies are on Wests trialling list, there has been little feedback on results and it is not likely that W-CDMA/LTE will be considered a serious option, given its costs since Sprint has no existing investment in the platform - and the carriers need to acquire 4G capabilities in a shorter timescale than LTE will achieve.
Sprint roadmap:
Tabassi says the technology and vendor selection will be made in the last quarter of this year, with market trials in 2007 and full launch, well within the roll-out schedule set by the FCC as the condition of Sprint Nextel keeping their merged 2.5GHz holdings. The plan is to reach 15m citizens in 2008 and 30m by 2011. Sprint is also starting to work on applications to drum up enthusiasm for its plans. Most recently, it offered a service at NASCAR races events heavily mapped to the Nextel demographic called FanView. Spectators rented a multimedia handheld device that carried locally broadcast voice, video and data content about the races, delivered over the 2.5GHz spectrum. The FanView device featured telecasts, seven in-car camera channels, direct audio feeds from the racing teams, and radio broadcasts.
This is just a taster of Sprints aim to
get its services well beyond phones and laptops and into embedded
consumer devices of all kinds an ambition that throws the spotlight
back on the WiMAX bid for its huge contract, where the main vendors
involved, Samsung and Motorola, are also experts in innovative devices.
The stakes are high for the vendors involved. Motorola is defending a
presence with its largest single customer, Nextel (whose iDEN cellular
network the vendor supplies); Qualcomm knows that Sprint is unlikely to
use CDMA EV-DO in 2.5GHz, and that this could be taken as a signal by
other CDMA operators, and so badly needs to succeed with its OFDM or
hybrid network; Samsung sees Sprint as its best chance of a foothold in
a truly global network equipment market; and a win or loss for
IPWireless will affect the entire future of the company. But of course,
the stakes are highest for Sprint itself, as it takes on the daunting
task of creating a service sufficiently distinctive and appealing to
neutralize the growing might of the giant converged telcos.
This article originally ran in Wireless Watch, a publication of Rethink Research. Reproduced with permission. For information on the weekly Wireless Watch Newsletter and other Rethink Research products and services, click here.
