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Technology Stocks : Lucent Technologies (LU)
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To: MRE who started this subject8/11/2002 1:17:37 PM
From: sylvester80   of 21876
 
Sprint Launches Next-Generation Wireless Network Nationwide

wirelessnewsfactor.com

Sprint Launches Next-Generation Wireless Network

By Jay Wrolstad
Wireless NewsFactor
August 08, 2002
wirelessnewsfactor.com

Throwing its weight behind CDMA, Sprint launched a nationwide network for high-speed wireless data transmission, while offering a variety of devices that take advantage of it.
After months of industry anticipation, wireless carrier Sprint PCS has unveiled its high-speed data network, along with a plethora of associated services and devices for customers using the CDMA 2000 1X-based (code division multiple access) infrastructure.
The fourth-ranked U.S. mobile operator launched the network upgrade nationwide, saying it will provide average data-transmission speeds of 50 to 70 kbps, with a peak rate of 144 kbps, which is comparable to the wireless data networks rolled out by Verizon Wireless, Cingular and AT&T Wireless.

While those companies already have introduced data services to their customers, they have done so on a market-by-market basis and have yet to offer nationwide coverage. Sprint spokesperson Dan Wilinsky cited that as a critical difference. "Our competitors have rolled out networks offering slower speeds, or covering only pockets of the country, but ours covers all of the top 200 metropolitan areas ... coast to coast, reaching a population of 250 million people," he told Wireless NewsFactor.

New Devices, Applications
He also noted that with the launch, Sprint has introduced a "compelling" set of products and applications for the network, including Handspring's color Treo 300 voice/PDA converged device (smartphone), three color-screen handsets, modem cards for laptops and PDAs, an add-on camera for digital imaging, and software for games and e-mail.

Dubbed PCS Vision, the next-generation wireless service will be rolled out nationwide beginning next week, with the carrier also launching a massive marketing campaign. Price plans range from US$44.99 to $119.95 per month and are based on data usage and voice minutes. Limited-time introductory rate plans are being offered, such as $89.99 per month for 2,000 voice minutes and two megabytes of data. Introductory offers for enterprise laptop and PDA users range from $39.99 per month for 20 megabytes to $119.99 for 120 megabytes.

Elbowing for Position

Competition in the U.S. Internet/data-enabled wireless market is getting fierce, with Sprint now squaring off against top-ranked Verizon Wireless, which offers a CDMA 1X service in some 300 cities and recently added new pricing options.

AT&T Wireless has a GSM/GPRS (global system for mobile communications/general packet radio service) service that is expected to go nationwide this year, and it recently signed a blockbuster deal with Microsoft to work on next-generation applications and devices. Cingular and VoiceStream also are on the GSM/GPRS path to 3G (third-generation) wireless.

Analysts say that the nationwide rollout by Sprint gives the company momentum in this highly competitive arena. "Launching this all at once should make it easier for Sprint from a marketing perspective," Phil Marshall of the Yankee Group told Wireless NewsFactor. But, he noted, all of the carriers have a long way to go before gaining significant revenue from next-generation services.

CDMA Leading

Both Sprint and Verizon can leverage the fact that CDMA has gained wide acceptance in Asia and that CDMA handsets outnumber GSM/GPRS phones by a two-to-one margin, said Marshall. And, he said, the CDMA migration path to 3G is more convenient than that of GSM/GPRS.

Keith Waryas of IDC said that Sprint has grabbed the spotlight by launching its service with a splash. The carrier also could have an edge because, unlike Verizon, it had a ubiquitous network in place and did not have to pull together disparate networks and technologies to introduce next-generation service.

Waryas added that going nationwide at the launch could enable deeper penetration by Sprint in both the consumer and enterprise spaces. "They have introduced some cool new devices, and all consumers really care about is connectivity and device functionality," he told Wireless NewsFactor.
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