Reuters Technology Report
Sprint PCS to Launch Advanced Network in August
By Yukari Iwatani
CHICAGO (Reuters) - Sprint PCS Group (NYSE:PCS - News) will likely roll out its long-anticipated advanced wireless network capable of high-speed Internet access nationwide in August, industry sources said on Tuesday.
Sources said the fourth-largest wireless telephone company and its regional affiliates, which sell wireless service under the Sprint PCS brand, should have the upgraded network ready in May and devices such as cell phones and PC cards in stock by the end of June.
Sprint PCS spokesman Dan Wilinsky declined to comment except to say, "We're still on track for a summer launch. We're hearing a buildup of customer excitement about the pending nationwide roll-out."
The Kansas City, Missouri-based firm said in the past that it plans to launch its CDMA2000 1X network across the country in mid-summer of 2002.
While its rivals, Verizon Wireless (London:VOD.L - News; NYSE:VZ - News), Cingular Wireless (NYSE:BLS - News; NYSE:SBC - News) and AT&T Wireless (NYSE:AWE - News), have already begun rolling out high-speed data-capable networks, Sprint PCS would be the first to offer an advanced wireless service nationwide.
1X is the next-generation version of Qualcomm Inc.'s (NasdaqNM:QCOM - News) Code Division Multiple Access (CDMA) technology. It offers wireless Internet access via cell phones and PC cards comparable to a home dial-up connection. It also doubles the voice capacity on networks.
Customers would be able to send and receive e-mail, download pictures and music and eventually watch video over wireless devices.
CDMA is the dominant wireless standard in the United States and the second-most commonly used standard in the world behind the Global System for Mobile Communications (GSM).
Advanced data-capable networks are expected to be the next catalyst for growth in the wireless industry, which has suffered from slowing subscriber growth after years of frenetic gains. About 45 percent of Americans already own cell phones.
William Benton, wireless analyst with William Blair & Co., said Sprint PCS was using the time until August to decide how to price the new service and train its sales and marketing force.
"They're trying to get the basic blocking and tackling ready from a billing and sales and marketing focus," he said.
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