There's been a lot of talk in 2009 about the next generation of wireless technology, known as 4G wireless broadband, but the current generation of 3G wireless technology is far from dead.
For many wireless operators, especially those that have built their networks using the global standard GSM, the current 3G wireless technology called HSPA still has some legs left. And while many carriers are planning their 4G networks, hundreds of wireless providers throughout the world are also expected to upgrade existing network infrastructure with the latest versions of the 3G wireless technology to increase speeds and offer new services. And because these network speeds will match current 4G speeds, consumers will likely see no difference in capability.
For this reason, the next few years will likely continue to be all about 3G technology. And 4G services, where they will be available, will likely appeal only to niche audiences.
"The average consumer doesn't care about peak data rates or network acronyms," said Dan Warren, the GSM Association's director of technology. "They just care about the experience. They want to be able to watch YouTube or get live traffic updates on their smartphones. And they don't care whether it's a new network or a current network that is being upgraded."
Mobile operators around the world are seeing a huge growth in the amount of mobile data traffic across their networks. This trend is expected to continue as more consumers buy smartphone and jump onto the mobile Web. By 2014, mobile devices are expected to send and receive more data in one month than in all of 2008.
Three-quarters of this traffic will be attributed to Internet access, while nearly all the rest will be due to music and video streaming, the GSM Association recently said. The new usage patterns will put strains on carrier networks, and operators are planning now to keep up with demand. Already, AT&T, which is the exclusive carrier for the iPhone in the U.S., is struggling to keep up with the heavy data usage.
While 4G networks will certainly increase network speeds and capacity, these networks and the devices that can be used on these networks will not be built overnight. This is why many carriers who are looking to meet demands today are turning toward advanced 3G upgrades.
T-Mobile USA, the smallest of the major U.S. wireless operators, has adopted this strategy. The company is currently upgrading its existing HSPA network, which launched just last year, to HSPA Plus, the most advanced 3G technology available. It has already started testing the new service in Philadelphia. And the company expects to deploy the lion's share of its upgrade across its entire footprint in 2010.
Meanwhile other operators, such as Verizon Wireless and Sprint Nextel are looking toward 4G technologies.
To the 4th power: WiMax vs. LTE
Two technologies dominate the 4G landscape: WiMax and LTE. In the WiMax corner is a company called Clearwire, which is backed by Sprint and Intel, as well as the nation's biggest cable operators, Comcast and Time Warner Cable. The company is currently building its network and has 13 cities up and running with service.
In the LTE corner is the rest of the wireless industry, including at least 50 mobile operators worldwide that have already committed to LTE plans, trials or deployments. The first LTE networks, including one being built by Verizon Wireless here in the U.S., are expected to be rolled out next year. NTT DoComo of Japan and TeliaSonera of Sweden have also committed to deploying LTE next year. That said, major network expansions aren't expected until at least 2011.
One of the problems that 4G carriers will face is that initially their networks will be islands of service. And it will take years for operators to blanket the country with their services. For example, Clearwire has mostly deployed its service in cities, such as Baltimore, Philadelphia, and Chicago. Verizon will likely do the same thing with its LTE network. And then the networks will spread from there. Verizon expects to launch 25 to 30 with 4G service in 2010.
Another problem 4G operators face is a dearth of new devices. Clearwire's WiMax service has been available for more than a year in some cities, and it still only offers USB modems, PC cards, subscriber modems and WiMax-enabled laptops. So far no one has started selling mobile devices, such as WiMax embedded phones. In fact, in January Nokia, one of the initial eco-system backers of WiMax, canceled its N810 WiMax Edition tablet. More devices aren't likely to be developed until the network is more extensive. Sprint is offering a dual-mode service that allows laptop users to switch between its 3G mobile broadband service and the 4G WiMax service, where it's available. But the service is only available for laptops.
As for LTE, no devices exist today because no LTE network exists. Since most of the world's wireless operators will likely use LTE for their next-generation networks, it's a fair bet that there will eventually be a plethora of LTE devices. And carriers, such as Verizon, will likely embed dual-mode chips that work with 3G networks, too. But given the fact that new wireless technology first shows up in laptops and then moves to phones, it's unlikely that consumers will see any LTE-enabled mobile devices for at least another 18 months to two years. And after that, it could take many more months to fill the pipeline.
Meanwhile, there are already 1,600 HSPA-enabled devices on the market, including smartphones, Netbooks, and laptops, according to the GSM Association. There are currently 321 HSPA networks across 120 countries worldwide, and 285 of these networks are commercially live, supporting more than 167.5 million connections.
And while Clearwire reported it added 173,000 new WiMax subscribers in the third quarter of 2009, the GSMA reports that more than 9 million new HSPA connections are added globally every month, with about 1.3 million of these connections coming from the U.S.
The need for speed
Of course, it's true that current 3G technology is considerably slower than 4G networks. Today's 3G technology, whether it is HSPA or EV-DO, offers typical download speeds of between 400 Kbps to 700Kbps. But the latest version of HSPA, called HSPA Plus, offers average download speeds between 4 Mbps and 6 Mbps. This is the same download speed range that Clearwire's WiMax service offers today.
It's difficult to compare these speeds with LTE, since there are no commercial deployments of LTE. But some experts say average speeds for LTE will initially exceed the 4Mbps range. Some people are expecting the service to offer average speeds around 15 Mbps to 20 Mbps.
Because there is little difference between WiMax and HSPA Plus in terms of speed, many operators are opting to invest in upgrading their networks to this technology while they plan for their eventual LTE migration. The GSMA says there are now 56 networks globally deploying HSPA Plus. And 28 of those networks are now live.
T-Mobile USA, as mentioned earlier, is one of them. AT&T initially indicated it was looking into HSPA Plus, but the company has more recently backed away from those claims. Instead, the company has said it is upgrading to a different version of HSPA called HSPA 7.2. AT&T's chief technology officer, John Donovan, said at the CTIA Wireless trade show last month that AT&T will start its LTE upgrade in 2011.
Mark Siegel, a spokesman for the company, said AT&T is keeping its options open.
"We are trying to stay flexible in how we increase 3G speeds as we transition to LTE," he said in an e-mail.
This means that T-Mobile is likely to be the first major U.S. carrier to compete against Clearwire's WiMax service.
T-Mobile has been criticized for entering the 3G market in the U.S. late, but the company has been working aggressively to catch up. At the beginning of 2009, T-Mobile could reach about 100 million people with its 3G wireless service. By the end of the year more 200 million people will have access to its network, according to Neville Ray, senior vice president of engineering operations for T-Mobile.
By contrast, Clearwire's WiMax service currently reaches about 30 million U.S. residents. And the company plans to reach about 120 million by the end of 2010.
As for subscribers, Clearwire said that at the end of the third quarter of 2009 it had about 555,000 subscribers, which includes people who have subscribed to the service via its partners Sprint, Comcast, and Time Warner, which are reselling the service. T-Mobile finished the third quarter with a total of 33.4 million customers.
"We have been rapidly expanding the reach of our network over the past 12 to 18 months," Ray said. "And in 2010 we are looking to jump ahead with a leading 3G experience. The only thing that will come close are data sticks from Clearwire. And their service is limited geographically."
Ray said the HSPA-Plus strategy allows T-Mobile to better compete against AT&T and Verizon, because it allows T-Mobile to stretch its 3G investment while still offering faster and more ubiquitous coverage for consumers.
"We may have been a little late to the 3G dance," Ray added. "But clearly the mobile data explosion is rapidly growing today. And our plan for 2010 will put us in a leading position to handle these demands."
T-Mobile USA hasn't said for certain that it will use LTE when it eventually builds a 4G wireless network. But considering that its parent company in Europe, T-Mobile, has committed to using the technology, it's a safe bet the U.S. affiliate will as well.
Ray said for now it's better for T-Mobile to leverage HSPA's existing device ecosystem. The company is already offering several devices, such as the Motorola Cliq, the HTC myTouch, and the Samsung Behold that are equipped with the faster HSPA 7.2 technology. And he said that T-Mobile expects to have HSPA Plus handsets on the market in 2010.
"Because there are a large number of operators throughout the world upgrading to HSPA Plus, it's already on the device roadmaps," he said. "This means we can bring the advanced 3G experience to consumers in mobile devices in 2010. And that is not the case with either LTE or WiMax."
The next generation of wireless may be on its way, but it's a slow road. In the meantime, consumers will likely get more out of faster 3G networks, such as T-Mobile's network than the budding services from Clearwire or Verizon Wireless. It will certainly be a fun horse race to follow.
German phone giant Deutsche Telekom is looking to jump into the 4G wireless market in the U.S. through partnerships with U.S.-based service providers, according to a report by Bloomberg News.
Bloomberg reported Tuesday that Deutsche Telekom is looking to beef up its presence in the U.S. wireless market by investing in Clearwire, a company that is building a 4G wireless network using a technology called WiMax. Sources also told Bloomberg that Deutsche Telekom is also talking to Metro PCS, which recently acquired spectrum to build its 4G wireless network.
Deutsche Telekom already owns T-Mobile USA, the fourth-largest wireless carrier in the U.S. But the carrier's growth has remained flat for several quarters. And the company hasn't yet announced plans for its next-generation network.
Last week, rumors resurfaced that Deutsche Telekom was looking to buy Sprint Nextel. Sprint is the third-largest wireless operator in the U.S. and has been struggling the last few years to retain customers. The idea behind a potential buyout of Sprint is that it would give Deutsche Telekom more subscribers, which could help it compete more aggressively against the two largest wireless carriers in the U.S., AT&T and Verizon Wireless.
But now it looks like the German telecom giant could be looking for a more cost-effective way to increase its presence in the U.S. market.
Partnerships with Clearwire and MetroPCS would cost the German phone company much less than purchasing Sprint outright, and it would be a lot easier than trying to digest another wireless provider.
Buying Sprint Nextel would likely become an integration nightmare for Deutsche Telekom. Sprint Nextel is already the product of what many consider one of the worst telecom mergers ever. Sprint bought Nextel in 2005 for $35 billion. And for the past four years, the company has struggled to integrate two different wireless networks. Sprint's network operates using a technology called CDMA, while Nextel uses a technology called I-DEN. T-Mobile USA uses GSM, which would introduce a third type of technology into the mix.
But if 4G access is what Deutsche Telekom really wants, then a partnership with Clearwire makes sense. Sprint owns about 51 percent in Clearwire. Last year, the companies created a joint venture combining assets from both companies. Clearwire, which has already begun building its nationwide 4G wireless network, is using 2.5 GHz spectrum that is owned by Sprint.
Clearwire said in August that it would spend between $1.5 billion to $1.9 billion in 2009 to expand its network. Deutsche Telekom could provide more funding for this endeavor in exchange for access to the network, Bloomberg reports.
Clearwire has already made similar deals with other investors. Last year, cable companies Comcast and Time Warner Cable were among investors that provided the company with $3.2 billion in funding. Google and Intel have also invested in Clearwire.
As the Clearwire network comes online, Comcast and Time Warner Cable have each announced they will offer mobile wireless broadband service using the Clearwire network in areas where they offer cable service.
A deal with MetroPCS, which sells prepaid wireless service, could help Deutsche Telekom get access to a 4G wireless network that will use a more widely adopted technology called LTE or Long-Term Evolution. MetroPCS acquired spectrum in the 700 MHz wireless auction, and it has said that it plans to build a 4G network using LTE starting in 2010. Verizon Wireless, the nation's largest mobile operator, which also acquired spectrum in the same 700 MHz auction, is also building a 4G wireless network using LTE.
Big Internet service providers don't seem to be interested in applying for federal stimulus funds, but smaller players like Leap Wireless are looking at the grant program as an opportunity to provide wireless service to underserved populations.
Prepaid wireless carrier Cricket Communications, which is owned by Leap Wireless, on Monday filed an application with the nonprofit organization One Economy for $8.6 million to help it expand a program called Project Change Access. This project, which launched last fall in Portland, Ore., has helped low income residents get online to improve their access to education, job training programs, health care, and social assistance, according to Leap.
The federal funding is expected to pay for about 80 percent of the cost of expanding the program to five other cities. Specifically, the plan is to provide high-speed wireless Internet access to 23,000 low-income families in Baltimore, Houston, Memphis, San Diego, and Washington, D.C.
Leap said it submitted its proposal to the National Telecommunications and Information Administration, which is overseeing the allocation of $7.2 billion in broadband stimulus grants. These grants are part of the bigger $787 billion stimulus package that Congress passed earlier this year. The government recently extended the application deadline to August 20 for applications for the broadband stimulus grants.
Much of the money is intended to help bring broadband access to rural areas where it's traditionally been difficult to get broadband service, as well as help provide affordable access and education to people who can't afford broadband access.
What makes Cricket's application interesting is that many larger Internet service providers and wireless operators are not applying for funds.
According to a recent article in The Washington Post, AT&T, Comcast, and Verizon Communications aren't expected to apply for funds at least in the initial round of funding. The companies aren't talking publicly about their decision. But the Post reported that the companies are leery about possible strings attached to the federal money that would include Net neutrality conditions. The companies also supposedly don't want to deal with unwanted scrutiny from the government and the public on how it builds out its network.
"We are concerned that some new mandates seem to go well beyond current laws and FCC rules, and may lead to the kind of continuing uncertainty and delay that is antithetical to the president's primary goals of economic stimulus and job creation," Walter McCormick, president of USTelecom, told the Post. USTelecom is a trade group that represents AT&T and Verizon.
Meanwhile, some companies affiliated with these bigger service providers are expected to ask for grant money. Clearwire, a company that is backed by some big service providers like Comcast, Time Warner Cable, and Sprint Nextel, said it plans to apply for stimulus grant money. But an executive recently said that the money received for broadband stimulus would have to be used outside its current expansion plan.
Even though Verizon doesn't seem interested in taking any government money now to help build networks to reach underserved customers, the company says its new 4G wireless network will reach more rural customers than its existing wireless network. And due to conditions established by the Federal Communications Commission on spectrum Verizon will use build this network, Verizon will have to make the 4G network more open than its traditional wireless network.
Still, even as Verizon pledges to offer more wireless access to rural customers, it is actually selling off traditional phone lines in rural areas. And even though it is required to make its 4G wireless network more "open," the company still opposes new rules or legislation mandating Net neutrality.
Verizon Wireless announced Friday that it has completed initial testing of its 4G wireless service in Boston and Seattle.
Using a new technology called Long Term Evolution (LTE), Verizon was successfully able to complete data calls in Boston and Seattle, the first two cities where the company will deploy its service. Verizon is using the 700 MHz spectrum it bought an FCC auction to build the network. The company plans to start offering the service commercially in 2010, providing service for up to 100 million people in 30 markets. The company plans to have the entire nation covered with 4G service in 2013.
As part of this initial test, Boston and Seattle each have 10 LTE 4G cell sites up and running on the 700 MHz spectrum. Verizon selected these markets because of their geographic configuration of suburban and urban areas as well as the areas' high-technology population.
The LTE technology promises to be much faster than current 3G technology and the company expects to deliver services 15 to 100 times faster than these other wireless networks. The actual speeds of the technology have yet to be seen.
Verizon will be competing with Clearwire and its partners, which are already rolling out commercial service for their 4G wireless network that uses a technology called WiMax. Like LTE, WiMax also greatly improves wireless transmission speeds. Clearwire has already launched its service in Atlanta, Baltimore, Las Vegas, and Portland, Ore. And it will add another 10 markets in the next couple of months.
Cable providers Comcast and Time Warner Cable, which invested in Clearwire, will be reselling the service in their cable territories. Meanwhile, Sprint Nextel, which is also a Clearwire partner, is already reselling the service along with its own 3G wireless service throughout the Clearwire territory.
Verizon first mentioned Boston and Seattle as the first two cities to get LTE during its quarterly conference call with investors in July. So far, the company hasn't said much about how the LTE service will be sold and priced. Currently, Verizon offers 3G wireless using a technology called EV-DO. That service is about $60 per month for up to 5GB of data per month.
The Clear WiMax service from Clearwire starts at $20 per month for in-home wireless broadband. And its mobile Internet plans start at $40 per month. Customers can also get a day pass for $10. The company also allows customers to add voice service to their in-home package for $25 per month.
Clearwire, which is using Sprint Nextel's 2.5GHz spectrum to build a nationwide 4G wireless network, announced Monday 10 more markets that will get the company's Clear WiMax wireless broadband services starting September 1.
Eight of the newly announced cities are in Texas: Abilene, Amarillo, Corpus Christi, Lubbock, Midland/Odessa, Killeen/Temple, Waco, and Wichita Falls. The other two markets are Boise, Idaho, and Bellingham, Wash.
These 10 markets will join four other officially launched WiMax markets: Atlanta, Baltimore, Las Vegas, and Portland, Ore.
Some of the additional markets planned to launch in 2009 include Chicago, Charlotte, N.C., Dallas/Ft. Worth, Honolulu, Philadelphia, and Seattle.
Clearwire says it's on track to launch 80 markets by the end of 2010. In 2010, it plans to roll out service in New York, Boston, Washington, D.C., Houston, and the San Francisco Bay Area among others.
It's important for Clearwire to launch more markets, especially in major cities where its joint venture partners can also resell the service. Comcast, Time Warner Cable, and Bright House Networks have each invested in Clearwire, along with Google and Intel. Altogether the companies pitched in $3.2 billion. Comcast and Time Warner Cable have already announced plans to start reselling the WiMax service in areas where they offer cable service. These cable companies plan to bundle the 4G wireless broadband service with their existing high-speed broadband services.
Sprint Nextel, another major Clearwire partner, is also reselling the service combined with its 3G wireless service in some markets, such as Baltimore.
Clearwire uses a technology called WiMax, which offers faster speeds than current 3G wireless technologies, but offers wider coverage than other high-speed wireless technologies such as Wi-Fi. Clearwire claims that it can provide up to 4 megabits per second for downloads and 500 kilobits per second for uploading, which is more than double what consumers can expect using a 3G wireless connection.
The Clear WiMax service from Clearwire starts at $20 per month for in-home wireless broadband. And its mobile Internet plans start at $40 per month. Customers can also get a day pass for $10. The company also allows customers to add voice service to their in-home package for $25 per month.
Time Warner Cable will soon be offering a 4G wireless broadband service using Clearwire's WiMax network.
CEO Glenn Britt told investors during Time Warner Cable's second-quarter earnings call on Wednesday that the company will begin reselling wireless service through Clearwire starting this fall in Dallas and Charlotte, N.C.
Clearwire uses a technology called WiMax, which offers faster speeds than current 3G wireless technologies, but offers wider coverage than other high-speed wireless technologies such as Wi-Fi. Clearwire claims that it can provide up to 4 megabits per second for downloads and 500 kilobits per second for uploading, which is more than double what consumers can expect using a 3G wireless connection.
Britt didn't disclose product offerings or pricing, but he said that investors will hear more details about the new service later. But it's likely that Time Warner will bundle the 4G wireless service into its cable modem broadband services.
"We see wireless as complementing wireline," he said.
Time Warner Cable invested in Clearwire in 2008 joining fellow cable company Comcast, as well as tech giants, Google and Intel. The companies contributed a total of $3.2 billion to the new company. Sprint Nextel also invested in the new Clearwire and is allowing it to use its 2.5 GHz wireless spectrum to build the nationwide network.
Clearwire's service is up and running in a few cities, including Atlanta, Baltimore, Las Vegas, and Portland, Ore. And the company has plans to roll it out in more markets this year and into 2010.
Comcast has already begun reselling the Clearwire WiMax service, which it calls High-Speed 2go, in Portland and Atlanta. Comcast is offering the service at the promotional price of $49.99 per month for a year.
Sprint Nextel is also reselling the Clearwire WiMax service in certain markets, such as Baltimore. The Sprint service offers laptop users the option of using the 4G WiMax network where it's available and Sprint's 3G wireless network where it's not available.
Clearwire also sells service in every market where it's launched. The service called Clear starts at $20 per month for in-home wireless broadband. And its mobile Internet plans start at $40 per month. Customers can also get a day pass for $10. The company also allows customers to add voice service to their in-home package for $25 per month.
Comcast is getting into the wireless broadband business by bundling Clearwire's 4G wireless service with its existing broadband products.
The largest cable operator in the U.S. will launch the new service in Portland, Ore. And it will expand the service to other Comcast cities later in the year, including Atlanta, Chicago, and Philadelphia.
(Credit:
Comcast)
Comcast invested in the new Clearwire in 2008, along with Google, Intel, Time Warner Cable, and Sprint Nextel, which gave Clearwire its 2.5GHz spectrum. Clearwire's plan has been to roll out its service nationwide. The service is now up and running in a few cities, including Atlanta, Baltimore, and Portland, Ore. And the company has plans to roll it out to 80 markets by the end of the year.
Some of the cities where it plans to launch the service include, Las Vegas, Chicago, Charlotte, N.C., Dallas/Ft. Worth, Honolulu, Philadelphia, and Seattle. And it plans to launch the network in cities such as New York, Boston, Washington, D.C., Houston, and the San Francisco Bay Area, in 2010.
Clearwire is using a technology called WiMax, which offers faster speeds than current 3G wireless technologies, but offers wider coverage than other high-speed wireless technologies such as Wi-Fi. Clearwire claims that it can provide up to 4Mbps for downloads and 500 kbps for uploading, which is more than double what consumers can expect using a 3G wireless connection.
Comcast will be selling 4G wireless access as part of an Internet bundle to Comcast subscribers. To entice new subscribers, Comcast is offering the new 4G wireless with its 12 Mbps download cable modem service, plus a free 802.11g router for $50 a month for the first 12 months.
The data card used for the 4G wireless, which fits into a laptop, costs $99. But subscribers who sign up for the package with a two-year commitment get the data card for free.
After the first 12 months, subscribers will then pay $43 per month for the 12 Mbps broadband service and $30 extra per month for 4G wireless service. The 4G wireless service is only available in Comcast's cable territory, but subscribers who travel to other cities where Clearwire's network is operational will be able to access the network at no additional cost.
New customers signing up for Comcast's triple play bundle of TV, phone, and Internet can add the 4G wireless component for $30 extra a month. So with the introductory price of $99 a month for the first year, the total would be $130 a month. After the first year, that bundle increases to $130 per month, so it would cost subscribers with the 4G wireless service $160 a month.
For subscribers who want more ubiquitous coverage, Comcast is offering a 3G/4G service that provides wireless connectivity on the Clearwire 4G network when it is available and on Sprint Nextel's 3G wireless service in other areas where 4G is not available. The cost of this service is an additional $20 per month.
Existing Comcast customers can add the new service for $30 more a month to their existing packages. And they can add the nationwide access with 3G access for $20 more per month.
Comcast has had its eye on the wireless market for quite sometime. The company bought wireless spectrum in the Federal Communications Commission's wireless spectrum auction in 2006. So far, the company hasn't said what it plans to do with that spectrum. But it has at least 10 years to decide, after which time the FCC could ask for the licenses to be returned.
Comcast has also worked with other cable operators to form a joint venture with Sprint Nextel in 2005. This joint venture was supposed to allow Comcast to bundle its broadband, TV, and telephony services with Sprint's wireless services. But the partnership never really got off the ground.
This time, Comcast thinks it has the right service package that will finally offer consumers a compelling product mix. The company is interested in not only using the service to help it win new customers but to also help it keep existing ones who may be tempted to defect to phone company competitors.
"This is really our first entree into expanding our in-home broadband service in combination with a wireless Internet service," said Catherine Avgiris, the company's senior vice president and general manager of wireless and voice services. "We are trying to get those consumers, who may not have chosen Comcast's broadband services in the past, to see that they can get the best and fastest in-home and wireless service from Comcast. But we are also trying to make sure we can keep the customers we do have from going to a competitor."
While it's clear that Comcast is using this new service to compete against its phone rivals, namely AT&T and Verizon Communications, it will also be competing against its partners Clearwire and Sprint Nextel, which will also be selling the same WiMax service to consumers.
Clearwire's service called Clear starts at $20 per month for in-home wireless broadband. And its mobile Internet plans start at $40 per month. Customers can also get a day pass for $10. The company also allows customers to add voice service to their in-home package for $25 per month.
Sprint is also offering a 3G/4G wireless service for people living and traveling regularly to places with 4G wireless coverage. For about $20 more a month, Sprint wireless data customers can get access to its 3G network plus the 4G Clearwire network for $80 per month. Sprint's regular 3G wireless data service costs about $60 per month.
AT&T and Verizon haven't included their 3G wireless data services into their in-home broadband and TV services, but the companies have been offering special deals for wireless customers. And both operators have announced Netbook offers where they subsidize the cost of these mini-laptops in exchange for a two-year service commitment. AT&T has also given free Wi-Fi access for its more than 20,000 Wi-Fi hotspots around the country to its broadband customers as well as some smartphone users.
AT&T isn't the only Wi-Fi provider that could compete with Comcast's 4G wireless service. In cities, such as San Francisco, there is already quite a lot of Wi-Fi in public places thanks to services like X. And in Philadelphia where EarthLink had deployed a citywide Wi-Fi network, Wi-Fi is still available for free in some locations.
Comcast isn't completely down on Wi-Fi. The company also offers a Wi-Fi solution in cooperation with Cablevision, a cable operator serving the New York area. The two companies are deploying Wi-Fi hotspots in train stations and on train platforms along the North East corridor from Philadelphia to New York City. The Wi-Fi access is free to Comcast and Cablevision broadband subscribers.
But Wi-Fi doesn't offer ubiquitous coverage. So these networks aren't the best answer for every consumer. But the success of Comcast's 4G wireless service is very much dependent on price. The company has priced the first year of the service extremely well, making it the hands down winner in terms of value for consumers. But it will be interesting to see if consumers are still interested in the service once the promotion is over.
The other potential downside to the service right now is that consumers will only get one USB laptop card per account. This might make it hard for families with multiple family members who want wireless broadband service outside the home. And this is also a problem for small businesses, which Comcast is also targeting with this service.
That said, Avgiris said that Comcast is working on a solution and will be offering multiple wireless cards for an additional cost. But the exact pricing of these cards and service hasn't been determined just yet.
Alcatel-Lucent said on Monday at Mobile World Congress in Barcelona that it has joined with other companies to form a consortium to encourage the development of the next generation of wireless communications technology.
Called NG Connect--the "NG" stands for "next generation"--the consortium will bring together device manufacturers with content providers, application developers, and other interested parties, the Alcatel-Lucent said.
The consortium will be looking at different next-generation technologies, such as 4G, long-term evolution (LTE), and other ultra high-bandwidth technologies, Alcatel-Lucent said in a statement.
Other companies that have joined the consortium include Samsung, HP, Buzznet, Chumby, Connect2Media, Total Immersion, TuneWiki, and Words & Numbers.
According to Alcatel-Lucent, the benefits the consortium will bring include "a seamless broadband experience" for users of mobile phones, cars, and computers. The aim is to enable users to stream more content, run more applications on the move, and communicate more easily, the company said.
Alcatel-Lucent admitted that the development of this technology would also help the network operators to make more money by helping them, and other suppliers, to "expand the revenue base."
This expansion will partly occur through the promotion of a variety of "pre-integrated" or ready-to-run systems that incorporate new applications and use new devices and software technology, the company said.
Commenting on the initiative, Tim Krause, chief marketing officer for Alcatel-Lucent, said: "The establishment of the NG Connect program is an important step in our strategy to create an open ecosystem, so that the trusted capabilities of service providers can be combined with the innovation of the Web."
Colin Barker of ZDNet UK reported from London.
Sprint Nextel announced Wednesday that it will start selling dual-mode 3G/4G wireless broadband modems for laptops starting Sunday.
Sprint 3G/4G USB Modem U300
(Credit: Sprint Nextel)The new device allows users to access both Sprint's 3G cellular data network and the new 4G WiMax wireless network the company is building as part of the new Clearwire venture.
The modem known as the Sprint 3G/4G USB Modem U300 will use the new 4G Clearwire network with download speeds between 2 Mbps and 4Mbps where that network is available. And when users are out of range of the 4G wireless network, they will automatically be able to access Sprint's 3G network, which offers average downloads of between 600 Kbps and 1.4 Mbps, according to Sprint.
Sprint launched the 4G WiMax network called Xohm in Baltimore in October, just months before it officially merged its WiMax network with Clearwire's network. The service will be launched in other markets across the country throughout 2009.
At the Baltimore launch, Sprint's CEO Dan Hesse promised a wireless data device that would allow users to access both networks for better coverage.
"It will take a while for the new (4G) network to be built ubiquitously," Hesse said during the Baltimore press event. "And we will have new multimode devices that will use 4G where it's available, and when it's not, it will downshift to 3G to provide that ubiquitous data coverage."
The new wireless modem connects via a standard USB port and costs $149.99 after a $50 mail-in rebate and with a two-year subscription to the wireless data service. The wireless modem will be available through Sprint's direct business sales force and at most Baltimore-area Sprint stores and select Baltimore-area retailers, the company said. Starting in January, the device will also be available in Baltimore-area Best Buy stores.
The new wireless modem from Sprint will likely be a better deal for most consumers because the service, which costs $79.99 per month, offers the best coverage at the best price.
... Read moreCable company Cox Communications will add cell phone service to its service bundle starting in 2009.
The cable operator announced Monday that it will initially partner with Sprint Nextel to resell its wireless service to customers in its cable territory. Cox already bundles high speed Internet, telephony, and TV service. And soon it will add wireless service for a quadruple play offering.
"Wireless service will be a key driver to Cox's future growth," Cox President Pat Esser said in a statement.
But Cox isn't stopping with just reselling Sprint's wireless service. It also plans to build a 3G wireless network. And it will eventually build a 4G network using LTE technology. The company will use the nearly $550 million worth of spectrum it bought in the Federal Communication Commission's AWS and the 700 MHz wireless auctions.
As consumers become more mobile, wireless service is quickly becoming a must-have for cable operators. But getting into the wireless game won't be easy for Cox, which faces an already saturated and competitive wireless market and an expensive network build-out.
This isn't Cox's first foray into wireless. In 2005, Cox Communications, Comcast, Time Warner, and Advance/Newhouse Communications, formed a joint venture with Sprint Nextel called Pivot that was supposed to develop wireless services that the cable operators could bundle and resell to their customers. Nearly three years later, and the Pivot brand is essentially dead.
Earlier this year, all the companies involved pulled out of the partnership completely. Comcast and Time Warner are now backing a joint venture formed between Sprint and Clearwire. Comcast is fronting $1.05 billion and Time Warner Cable is putting in $500 million to help make a combined Sprint/Clearwire wireless network that uses a 4G wireless technology called WiMax a reality.
Cox and the other Pivot cable companies also formed a joint venture called Spectrum Co. that bid on and won significant amounts of spectrum in the FCC's AWS spectrum auction. Cox is now the only one of the four cable operators that formed Spectrum Co. to use the spectrum to build its own network to cover its existing cable footprint.
As for the failed effort with Sprint, Stephen Bye, vice president of wireless for Cox, said the company's latest strategy is very different from what it was doing with Pivot.
"The Pivot joint venture was offering a co-branded experience," he said. "Now we are building our own wireless network in our footprint and leasing capacity from Sprint nationwide to deliver an integrated service that we build and manage."
Specifically, Cox plans to use its existing voice switching technology and fiber within its network footprint to build the wireless network. The company will be building the service from the ground up as opposed to just bolting on a service from the outside, Bye said.
But it's unclear whether Cox's latest strategy will work considering that more than 85 percent of Americans already subscribe to cellular phone service.
What's more, in Cox's territory, consumers are likely to already have three if not four nationwide wireless operators offering them service. Cox hopes that bundling wireless with its existing services will help it get a piece of the market. But Bye also believes that Cox can integrate wireless into its existing services. For example, the company might extend its video offering to mobile devices using the mobile network.
"As we look to the future of wireless, it's about much more than just voice services," Bye said. "Wireless is undergoing a new wave of adoption around data and video. So we see a tremendous opportunity to take our existing services outside the home and make them mobile."
Still, building a wireless network from the ground up is expensive. Bye wouldn't say how expensive, but he acknowledged it will be a significant investment.
And because Cox only owns wireless spectrum in and around its existing cable footprint, it will always have to partner with other wireless carriers to provide nationwide coverage.
For now, Cox is partnering with Sprint to provide seamless 3G wireless coverage. The company claims this is not an exclusive deal, but no other operator has been named as a partner. The real problem for Cox comes when it starts deploying 4G wireless services. Sprint is building its 4G network using WiMax. And Cox plans to use a competing technology called LTE. This means that Cox will have to find another partner for 4G wireless, and the seamless integration between 3G and 4G might be difficult to iron out.
But Bye said that there is still a lot of life left in 3G services and that a 4G network is still a long ways away. When the time comes, the company will have a plan to deal with the migration, he said.
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