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Content Tagged with sprint + wimax
Sprint’s Xohm Network is Only Half Open
Today marks the formal launch of Sprint’s Xohm network, and celebrants are gathered in Baltimore to show off their new WiMAX-enabled gadgets. But after chatting with an executive from Lenovo, I wonder just how open Sprint’s network will be, and how that lack of true openness might slow the adoption of WiMAX.
Lenovo is on hand showing of its five laptops designed for Sprint’s WiMAX network, including the super-sleek x300 that competes with the MacBook Air. David Critchley, worldwide segment manager with Lenovo, said the x300 was supposed to launch last spring with WiMAX inside, but Sprint’s delays nixed that plan. Critchley expected that Lenovo would have the most WiMAX enabled products ready to launch today, in part because it had been preparing for WiMAX for so long, enabling it to get hardware ready in time for testing. He called Sprint’s testing pipeline “narrow,” and expected others to only have one or two devices ready for launch.
Wait. Testing? This is supposed to be an open network ready for any device. Now I’m worried that Sprint’s approval process will keep WiMAX from becoming as popular as Wi-Fi. Isn’t that how Verizon is supposedly going to keep its network from becoming entirely open? Maybe it’s the difference in operating on unlicensed spectrum as Wi-Fi does, or licensed as WiMAX does, but getting as many devices as possible on the network will be key for WiMAX success.
A bottleneck caused by Sprint’s testing isn’t going to help grow the number of gadgets and consumer awareness rapidly. As an executive over at Motorola told me, WiMAX is likely to win out when (a) it’s seamless and easy for consumers to access and (b) carriers make it easy for WiMAX devices to hop on and off their networks. An approval process makes both less likely, especially if it moves slowly.
Xohm WiMAX Launches: Limited Service, No Bandwidth Caps
UPDATED: After six months of waiting and a few leaked launch dates, Sprint announced commercial availability for its Xohm WiMAX network in Baltimore with a good pricing plan that undercuts 3G data but only provides limited coverage. However, there are no bandwidth caps.
John Polivka, a Sprint spokesman said, “We do not plan usage limits or caps. This is why we have maintained WiMAX is a ‘capacity’ story more so than an enhanced network speed story.”
The lack of bandwidth caps, competitive pricing and the fastest wireless network available today, make Xohm compelling, but the coverage is currently limited to Baltimore. The next networks to launch will likely be Chicago and Washington, and Sprint is building out networks in Boston, Providence, Philadelphia, Dallas and Fort Worth. As it goes nationwide, WiMAX could force 3G carriers to upgrade their 5GB limits on data use, or to make their 4G networks unlimited as well.
Xohm offers downlink speeds of 2 Mbps to 4 Mbps, which is faster than current EVDO speeds and even HSDPA networks (although these can and will get faster). Other than speed, the most exciting thing about Xohm is the pricing options. There’s no commitment or contract, and one charge covers all WiMAX enabled devices. Currently there are only a few data cards out there, but more are in the works including the Nokia N810 WiMAX tablet (shown here), a few Intel notebooks and a some data cards and USB modems. But the network is open, and Sprint is working hard to bring alternative gadgets onto the network.
At launch, mobile WiMAX service plans include a $10 day pass, $25 monthly home Internet service and a $30 monthly mobile service available on any WiMAX device. Special launch pricing includes a $50 “Pick 2 for Life” monthly service option covering two different WiMAX devices. If the network expands nationwide, this might be a good option, assuming prices will rise as coverage expands — and that the coverage is good.
Before the end of the year, Sprint says it will launch a dual-mode device that takes advantage of its 3G and WiMAX networks, which could be sweet, especially as the carrier enters into its nationwide WiMAX joint venture with Clearwire in December. But after the long wait for Xohm, consumers may want to wait and see if Sprint can fulfill its coverage promises before getting psyched up over the pledged multi-mode device.
Satellite Guys To WiMAX: Why You Hate Us!
When it comes to wireless broadband, WiMAX is one technology that has some bad juju. You have two of its premier proponents in the U.S., Clearwire and Sprint, riding leaky boats in rocky financial seas. You have LTE as a potential competitor, thanks to backing from AT&T and Verizon. And now there is a new report out that says WiMAX causes interference with satellite communications transmitted in the C band frequency.
Of course one has to take the report with a pinch of salt since it has been released by Florida-based Satellite Users Interference Reduction Group (SUIRG), which has conflicts up the wazoo. They conducted tests to “measure interference levels generated by fixed WiMAX transmissions into an FSS satellite receiving station.” The tests found that the “WiMAX transmit signal could cause significant problems to a satellite digital signal well in excess of 12 km distance.”
A sharp reader points out that this is a problem with 3.5 Ghz fixed wireless/WiMAX solutions, which is different from the spectrum Sprint & Clearwire are using/planning to use. 3.5 Ghz is very popular for WiMAX in overseas markets.
Any readers who are experts in satellite communications, and want to read the report, we would love to hear from you as to what you make of this whole issue.
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Communications
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VCs Put $20 Million into Rural WiMAX
DigitalBridge Communications, a provider of WiMAX-based broadband-to-rural communities, announced a $20 million Series B round of financing Monday, showing that some investors believe there might be gold to mine in them thar rural broadband markets. The new funding (which PE Hub says is closer to $23 million) joins the $17 million or so the company had raised previously. DigitalBridge CEO Kelley Dunne, contacted via phone Monday night, said the latest round should let the company “fully fund” its planned rollout to 15 markets, beyond its current list of served communities that includes the Idaho locales of Rexburg and Pocatello, along with Missoula, Mon., and Washington, Ind.
Dunne, a telecom veteran who spent time both at a CLEC and at Verizon, said that capital expenditures for a WiMAX provider today are “about one-tenth” of the costs that a wireline CLEC might need. Combining WiMAX with low-cost fiber agreements and easy-to-install customer-premise gear from Alvarion is a recipe that is already producing cash-flow-positive results in Rexburg, Dunne said.
What will be interesting is to see how smaller, more focused WiMAX upstarts like DigitalBridge and Towerstream perform in comparison to bigger players like Clearwire or the ailing Sprint Nextel, which is reportedly close to unveiling another round of layoffs. Dunne acknowledged that DigitalBridge’s strategy is to “build around Clearwire and Sprint,” aiming at underserved markets with 150,000 residents or less.
According to DigitalBridge, the latest funding round was led by Paladin Capital Group, and includes previous investors Redshift Ventures, CNF Investments and Novak Biddle Venture Partners. Though DigitalBridge is based in Ashburn, Va., the company is targeting underserved rural areas in many geographical markets, especially in Montana, Idaho and Wyoming, where the company owns licenses or leases to 193 MHz of spectrum.
Paul Kapustka, former managing editor for GigaOM, now has his own blog at Sidecut Reports.
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WiMAX: Sprint, Clearwire Mulling the Future, Maybe Together
Sprint Nextel (S) and Clearwire (CLWR), two companies that are betting the farm on building out WiMAX networks, are getting no love from Wall Street analysts. Sprint just reported a disastrous quarter, and the continuing decline in revenues and subscribers might result in lower spending on its WiMAX efforts. Similarly, Clearwire is not growing fast enough to satisfy investors.
Pali Research analyst Walter Piecyk downgraded the Clearwire stock to sell, saying the recently launched PC Card is not selling as well as had been expected. He cites two reasons for the slow sales: high price point vs. CDMA PC cards, and lack of awareness. Piecyk is very concerned that the cost of deployment of WiMAX is going to be higher than expected; he thinks cap-ex could top a billion dollars in 2008.
Wall Street has been clamoring for Sprint and Clearwire to merge their WiMAX operations and create a new company with a massive national footprint. The Wall Street Journal quotes Sprint’s acting CEO as saying that they are having “discussions” with Clearwire. The merits of that argument are understandable, but the reality is that it is unlikely to happen till Sprint finds a new CEO and the management team can finally get its strategy together.
It is important to note that Wall Street goes through phases of “new technology induced depression.” The early phase of deployment of new wireless and broadband technologies is one that’s full of uncertainty, but in the long term, bets on new technologies boost the respective companies involved. Sprint went through this shift with its PCS rollout, and more recently, Verizon (VZ) with its FiOS rollout. I guess WiMAX, despite all its potential, is going through that phase right now.
Gary Forsee-Ya Later
In the third quarter of 2007, Reston, VA-based Sprint Nextel (S) announced that it will lose approximately 337,000 subscribers. Make that 337,001, the last minute addition being Gary Forsee, the CEO was has taken the fall for all that has been plaguing the third largest US mobile company. Of course when you get paid $21.6 million a year, well getting the boot comes with the gig.
Wall Street has been baying for blood for a while now, thanks to mounting subscriber losses. Yup, that’s right, the very same Street that rejoiced over Forsee’s appointment as the savior of Sprint. The same Street that threw a party to celebrate the ill-fated coupling on Sprint Nextel.
The very same Street that popped the champagne when Sprint spun off Embarq - even though everyone knew triple play was the way forward. Lately, the Street has been questioning Sprint’s decision to bet on WiMAX and work its way out of the iDEN-CDMA mess.
This is a movie that plays time and again. Remember all the negativity around Verizon (VZ) FiOS and how expensive an effort it was. Well, the tune has changed in recent days. It happened with the old AT&T (T) when Michael Armstrong, the then CEO paid too much attention to the Street and didn’t follow through on his quadplay strategy.
Can Forsee’s successor turn the ship around? I am not sure. Sprint is in transition, and if their WiMAX xOhm strategy is given a chance, then Sprint can be back on top.
dailywireless.org " Nokia Tablet Going WiMAX?
PDAStreet: News: Nokia to Add WiMAX to Internet Tablet for Sprint
Trials of Mobile WiMAX
Updated: There’s 3 WiMAX options, Sprint, Clearwire and the rest of us, says Craig Niemeyer, CEO of Nth Air, a San Jose-based service provider he started in May 2005 with no VC funding. He says his company has just launched a trial mobile WiMAX service in Silicon Valley recently. Covad, Towerstream and a bunch of other smaller players also belong in the “rest of us” category.
Nth Air’s trial is tiny, compared with nationwide networks being planned by Clearwire and Sprint. “A couple nodes” says Niemeyer, though the company is also working on additional trials. But the service represents a growing interest in mobile WiMAX as the technology is nearing prime time, with vendors creating hardware. Sprint and Clearwire may not have blanketed the country with their networks just yet, but they have brought added interest to the market.
Nth Air’s trial network is a sign that standardization and newly available gear will bring more of these experimental, new networks.
Clearwire is also busy greasing its mobile WiMAX wheels. The company announced this week that it had completed the first phase of a mobile WiMAX trial in a suburb of Portland, Oregon. The trial was conducted with Motorola and Intel, and the company has been working on how to offer its customer’s a mobile option for months.
Sprint is likely already starting to build out its mobile WiMAX network, given the carrier is supposed to have launched a few cities by the end of the year. Sprint is using hardware from Motorola, Samsung and Nokia.
Nth Air doesn’t have the backing of an Intel or Motorola. Niemeyer wouldn’t disclose details of the frequency and spectrum the company is using for its network, though the company is using gear from the startup, PureWave Networks.
Nth Air’s Silicon valley mobile WiMAX service is targeted at businesses and Niemeyer says that while they haven’t finalized the pricing, its fixed service costs $500 per month. (updated to clarify pricing) If it’s the same for the mobile service, which offers 3 Mbps symmetrical, that sounds pretty high. But for a tiny network that doesn’t have the economy of scale, it’s not surprising.
Sprint’s own activist investor
Add a vocal Carl Icahn-style activist investor to the long list of issues Sprint needs to tackle in 2007: build WiMAX, fix the Nextel integration, cut workers, coax back those high-end customers . . . now also figure out how to manage press-friendly pissed off shareholders.
The Wall Street Journal published an article this morning about disgruntled investor Ralph Whitworth, who’s investment firm reportedly owns a $500 million stake, or almost 1%, of Sprint (Reuters report here). Whitworth wants changes at the recently poor performing carrier, including less spending on capex and a sale of its fiber-optic network and long-distance business.
The interesting part is that Sprint hopes its WiMAX network will help with its lagging numbers behind Cingular and Verizon Wireless. And Sprint plans to spend around $3 billion on the rollout.
But Whitworth sees WiMAX as “a drain on the company’s overall cashflow” and “too speculative an investment,” according to an unnamed source in the WSJ. (In double PR talk that could easily be Whitworth himself.)
Sprint’s shares actually rose 2.97% (and rising) today, likely as a result of the report. That could mean the street agrees with the uncertain WiMAX assessment, or just that Sprint needs more drastic changes. Or likely both. (For what it is worth, the rise in shares means Whitworth’s firm’s $500 million stake went up to $515 million - after the story appeared.)
Interestingly Sprint actually sees its WiMAX investment as less of an investment than it would make on other forms of network upgrades. Sprint says it will overlay its WiMAX network onto its 3G network at one tenth the cost of what it takes to build out its 3G network. I’m not sure capital expenses are Sprint’s issue, just spending money on networks (Nextel, WiMAX) that might have integration issues, is a bigger problem.
Sprint’s Lil WiMAX Details
CTIA 2007: If Sprint’s mobile WiMAX network weren’t the first of its size and kind in the U.S., we wouldn’t be following its future rollout details like paparazzi mob Britney Spears. But it is, so we will.
Sprint named a dozen or so more markets for its WiMAX rollout and the chosen vendors for each location, and also announced some new hardware partners. Sprint now has 19 markets announced for network vendors Nokia, Samsung and Motorola (see details below the fold)
We talked with Atish Gude, Sprint’s senior VP of mobile broadband operations at Sprint’s CTIA press conference, and asked him if the company had talked to Clearwire about any roaming deals or if he could envision such a partnership. He said he thought Clearwire’s technology was far from having a mobile element yet, and though the companies had had some preliminary talks, there was nothing meaningful to announce.
The details:
- Motorola will build out Chicago, Detroit, Grand Rapids, Indianapolis, Kansas City and Minneapolis.
- Samsung will develop Baltimore, Boston, Philadelphia, Providence and Washington D.C.
- Nokia will take care of Austin, Dallas, Denver, Fort Worth, Portland, Salt Lake City, San Antonio and Seattle.
- There are now 19 markets named for the WiMAX launch — Hopefully the Bay Area will fall in there somewhere, sometime soon.
- Samsung will develop PC cards for WiMAX and dual EVDO/WiMAX.
- ZTE Corporation will supply WiMAX devices including PC cards — express and USB — as well as modem products.
- ZyXEL Communications will develop modem products.
WhyMAX?
The day is approaching where average consumers will want a true web-browsing Internet-style experience on mobile devices. It might not be anytime soon, but it’s coming nonetheless. For wireless carriers who are now trying to get subscribers to access mobile data over 3G it is both a blessing and a curse — as many have pointed out too many subscribers that might tune into (and upload video to) a truly-mobile YouTube on cell phones could clog a 3G network pretty fast.
What does that mean? Carriers have to upgrade their networks, and are now making the tough and expensive decisions about which way to turn for 4G (I know, it seems like we just got to 3G!). Does a carrier keep upgrading its 3G network and aim for what the telco world calls “long term evolution” (LTE) — 4G network technology from the cellular world which is many years from prime time? Or do carriers start building alternative data-specific networks with technology like mobile WiMAX that is available now?
Carriers are making different decisions based on a variety of factors: How competitive their 3G footprints are, how much spectrum do they own that can be dedicated for mobile WiMAX, and how they anticipate the growth of data-hungry mobile web subscribers. WiMAX is the wireless word of the year, in no small part to Clearwire’s not-so-smooth IPO efforts and Sprint’s (overly?) ambitious network buildout.
While the success of WiMAX is by no means assured, it is becoming a more attractive choice for certain carriers. Mobile WiMAX might be argued as not officially 4G, but it is a precursor. That’s why time to market is the biggest reason why carriers are starting to look seriously at mobile WiMAX. WiMAX is at least two years ahead of LTE in market time, writes ABI Research analyst Ian Cox in a recent report.
For a third place U.S. carrier like Sprint (which is also losing important post-paid subscribers) the company needs to do something sooner rather than later. As this article points out, Sprint needs to do something aggressive to stay competitive with CDMA-leader Verizon Wireless:
Being the smaller player means Sprint has no leverage to pressure Qualcomm, the mother of all sources of CDMA technology, to help it build a network more advanced than Verizon’s. In short, following the conventional CDMA route could leave Sprint stuck permanently in Verizon’s shadow. — VOIP News
Even the CEO of Vodafone recently pointed out at 3GSM that mobile WiMAX is now a major player for future wireless broadband networks, based largely on time to market, according to Seeking Alpha.
Mr. Sarin admitted that LTE is far from being implemented, let alone standardised, and astonished his audience by suggesting that LTE may not even be supported by Vodafone in the future. – Seeking Alpha
Vodafone even has some WiMAX bets in countries like France, Bahrain, Greece, Malta, New Zealand, and South Africa.
Another reason carriers are considering mobile WiMAX is that it is being touted as a cheaper (in some ways) technology to building and upgrading 3G networks. Dan Lockee, an analyst at Pyramid Research, wrote recently that WiMAX spectrum has been significantly cheaper than 3G spectrum, and “in some cases, WiMAX spectrum has been less than one-thousandth of the cost of 3G spectrum for a given geographic area.” Though, he also points out that WiMAX spectrum will get more expensive as more regulators release lower frequencies to be used for mobile WiMAX.
When comparing infrastructure to infrastructure, deploying mobile WiMAX networks is often thought to be cheaper than deploying 3G networks, though currently, ABI’s Phil Solis says the costs are actually about the same:
“what many companies in the industry are finding out is that the costs are approximately the same when comparing apples-to-apples (including, or not including, site acquisition, towers, other equipment, and backhaul for both 3G and WiMAX). This is not to say that it will remain this way, but just that at this point in time, mobile WiMAX deployment costs are on par with 3G deployment costs.”
Thinking about costs also depends on what networks carriers have already built and how they are upgrading. The costs are varying depending on the degree of the upgrade. Solis says that when Sprint makes its cost comparison claims, it is comparing the addition of mobile WiMAX to its existing 3G infrastructure:
“Existing base stations will be used (and some new ones added), other existing equipment at the site, and the existing backhaul. So what Sprint is really saying is that it will be overlaying mobile WiMAX onto its 3G network at one tenth the cost of what it takes to build out its 3G network. In other words, Sprint is greatly expanding its access speeds and capacity above and beyond 3G, and is doing so with a marginal increase in cost (a 10 percent increase).”
WiMAX might have lower costs and be ready now, but a lot of carriers are still aiming for LTE. ABI says network operators will invest a total of almost $18 billion in LTE capital infrastructure over the period between the end of this year and 2014.
There’s a lot of choices for carriers as they are forced to become mobile broadband suppliers and not just voice networks. While it’s not clear which one will be the “right” choice in the long run, we’re likely to see some pick WiMAX as the right choice for right now.
