Sprint Nextel WiMAX technology for 4G network

[Barry]

Sprint Nextel said they will use WiMAX technology for its 4G network and utilize its wealth of spectrum in the 2.5 GHz band for a rollout that is slated to begin in the fourth quarter of 2007. Sprint will work with Motorola, Intel,and Samsung,to develop the network and chipsets. One key element of the strategy is to have the chipsets embedded in a variety of consumer electronics devices. Sprint Nextel described chipsets potentially being embedded in portable game stations, video cameras, MP3 players and vehicle navigation systems to provide wireless connectivity for those items—and potential new revenue streams for Sprint Nextel.

Sprint Nextel’s 2.5 GHz spectrum holdings cover 85 percent of the potential customers in the top 100 U.S. markets, according to the carrier. West said that 4G coverage will be introduced in markets where high demand for the faster network is expected, and that rollouts beyond those markets would be demand-driven. This is in contrast to Sprint Nextel’s plans for its CDMA2000 1x EV-DO Revision A upgrade, which West said the carrier will extend over its entire network. Single-mode 4G devices would likely be the first to appear, with dual-mode devices covering both WiMAX and EV-DO Rev. A planned.

Sprint Nextel plans to spend about $1 billion on 4G in 2007 and between $1.5 billion to $2 billion in 2008. The carrier said that it will start rolling out Rev. A service in the fourth quarter of 2006 and that it plans to cover about 40 million customers by the end of the year. However, Sprint Nextel’s second-quarter customer numbers were disappointing—the operator gained only about 210,000 direct, postpaid customers, although it continues to lead the national carriers on wireless data revenue.

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