Sprint Nextel to Roll Out Nationwide 4G WiMAX Network

Strategic Insights -

Sprint Nextel Corporation has announced plans to deploy a nationwide fourth-generation wireless broadband network based on the WiMAX technology standard, aiming to cover up to 100 million people by the end of 2008. The initiative, which will cost up to $3 billion, involves partnerships with Intel Corporation, Motorola, Inc., and Samsung Group to develop and manufacture mobile WiMAX-enabled chipsets and devices. Sprint Nextel will utilize its extensive holdings of 2.5 GHz band spectrum, covering 85% of the top 100 US markets, to deploy the network.

Key Takeaways:

  • Sprint Nextel plans to roll out a nationwide 4G WiMAX network starting late next year, with the goal of reaching 100 million people by the end of 2008.
  • The network will be built in cooperation with Intel, Motorola, and Samsung, who will develop and make available WiMAX-enabled chipsets and devices.
  • The network will utilize Sprint Nextel's 2.5 GHz band spectrum, covering 85% of the top 100 US markets.
  • The 4G network will offer download speeds of 2 to 4 megabits per second, about four times faster than current wireless broadband services.
  • WiMAX technology is expected to provide a cost-per-megabit advantage, with a substantial improvement in performance compared to third-generation broadband network services.
  • The network buildout will be demand-driven, with Sprint Nextel building it out in areas where high demand is expected.
  • Sprint Nextel officials expect the 4G network to provide a unique broadband capability for meeting the growing access and mobile Internet needs of businesses, governments, and consumers.

Statistics:

  • Up to $3 billion will be spent on deploying the 4G WiMAX network through 2008.
  • The network will cover 85% of the households in the top 100 US markets.
  • WiMAX technology offers about four times the throughput of other technologies, at one-tenth of the cost of other services.
  • Download speeds on the 4G network are expected to be 2 to 4 megabits per second.
  • Sprint Nextel's current wireless broadband services provide download speeds of about 1 megabit per second.

Sources:

  • Sprint Nextel Corp.
  • Intel Corp.
  • Motorola, Inc.
  • Samsung Group