Although much of the attention on WiMAX in the US has been aground Clearwire’s
plan to build a nation-wide network, lesser known is how Sprint plans to
leverage its own unique advantages to help drive 4G adoption. I recently
had the opportunity to talk with Todd Rowley who heads up the 4G Business Unit
at Sprint.
On of the main arguments against WiMAX in the US has been lack of coverage.
The argument goes like this: While other markets are planed for later this year
(Clearwire plans announcements in a few weeks), why would anyone spend money on
service or devices with only two markets available – Baltimore and Portland, OR?
(Editors note: While Clearwire is the only operator planning a nation-wide
network in the US, other regional providers have launched WiMAX networks
including Digital Bridge and Towerstream, among others.)
Sprint aims to turn that argument on its head by offering the best of both – the
coverage and reliability of its extensive nation-wide 3G service along with the
3-5x performance improvement of WiMAX in those markets where it is available.
Sprint recently began offering the industry’s first dual-mode 3G/WiMAX USB card.
The Sprint branded data card, made by Franklin-Wireless, allows subscribers to
access Sprints nation-wide 3G EVDO network and then seamlessly experience WiMAX
in those markets as they are rolled-out based on its agreement with Clearwire.
"You get the best of both networks – you get the coverage and speed of the most
dependable 3G network and then get turbo-charged when you are in one of the WiMAX markets," says Todd Rowley with Sprint. "With this device, you get it
wrapped up all in one package."
The USB card is offered at $149, which is a premium to current 3G cards that
sell for around $49 (although some promotions offer them for free with a data
subscription). The monthly service fee is just $20 more than the current
3G data plans. People will also have the ability use the dual-mode device
with a 3G plan and then upgrade later when they travel to a 4G location.
In order for Sprint to be successful, however, they will need to clearly
differentiate the performance advantages of their 4G WiMAX offering relative to
the current 3G services of its competitors. "What we are seeing from
Baltimore is that this service is disruptively different than existing 3G
services," says Rowley. "It is delivering 3-5 times the speeds and
performance relative to 3G, with 2-4 Mbps and in some case 5-6Mbps performance on
the downlink. That will allow us to differentiate with real-time video and
other social media applications."
In fact, two specific aspects of WiMAX may also enable it to differentiate from
3G services: 1) an uplink capability of 1Mbs or greater and, 2) its extremely
low latency. By comparison, most 3G services offer uplink
performance in the several hundred Kbps with higher latency which can make video
difficult. The uplink is important as more and more data such as video is
streamed from the user back to the tower. The power of real-time, two-way
full motion video on a portable device is a real game changer.
"Just to put it to some real life examples," says Rowley. "If you can
imaging being at a job site and having some type of technical problem, and then
being able in real time show someone back at the home office the problem, and
have them walk you through and trouble-shoot . The examples are endless: first responders, plumbers,
technicians, appraisers for insurance companies, or
just being able to stream video from your kids soccer game."
Of course just mention the term MVNO (mobile virtual network operator) and it
brings up memories of past business model failures such as Helio, Amp’d and
others. With its 4G WiMAX service, Sprint will essentially be competing in
many of the same markets as Clearwire and its other cable partners in the
venture. What will make this one different?
"From our perspective, you have to be really committed to the vision, product
and service as well as have a good working relationship with your partner," says
Rowley. "You also have to have a good balance of knowing what market you
are targeting and what your cost structure is – and what segments you can be
successful with because of that cost structure."
Sprint existing business and a strong customer base and distribution network
should help, something missing with other MVNO efforts. Sprint will also
be competing with a new type of service with distinct performance advantages
over existing technologies. "Mobile broadband is a big growth area – in
the US there are 9M data cards today and that number should triple over the next
few years," says Rowley. "We believe our leadership in 4G will put us in a
unique position."
Sprint also plans to leverage its Clearwire partners Google, Comcast,
Time-Warner and others to help spur innovation and drive adoption in a model it
refers to as "co-opetition". "We came at this from the perspective that
WiMAX is open and as you embrace WiMAX, you embrace the competitive market
places," says Rowley. "We also knew that we needed strong partners to help
drive the adoption of this model."
As for devices, Sprint has recently begun working on a dual mode handset
embedded with WiMAX and 3G. "We have actually kicked off a project that
will have a dual-mode, iconic, flag-ship type handset this time next year," says
Rowley. "The device will be 3G for voice and will have 4G to optimize for
certain applications. Special considerations are being given in the design
with regards to power consumption and processor to make sure the user as an
optimized experience."
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