Sprint Enters Agreement to Deploy LTE Services, WiMAX Left in Limbo
July 28, 2011 4:32 PM
comment(s) - last by
Sprint will be deploying an LTE 4G network for the first time.
(Source: Wikimedia Commons)
Sprint has traditionally backed WiMAX, a rival 4G technology. The new deal puts the future of the company's WiMAX network in limbo.
Third party communications firm will provide Sprint with its LTE services
Sprint Nextel Corp. (
) was the first major U.S. carrier to try to deploy a 4G spec. network. Sprint's WiMAX network
launched in September. 2008
and has slowly picked up steam
adding more cities
. Sprint has indicated, though, that it may
consider switching to LTE
-- the 4G standard that Verizon Wireless (
and AT&T Inc.'s (
) promises to soon support.
Now it appears Sprint is preparing to take the plunge, entering into a $13.5B USD contract with LightSquared to deploy an LTE network. LightSquared licenses and owns large chunks of the so-called "L-Band" (1-2 GHz) spectrum, and thus has room to grow its LTE offerings.
The network will open in some markets next year, and will be available to over "260 million Americans" by 2014.
Under the agreement LightSquared will give Sprint $9B USD in cash for the infrastructure deployment, as well as "purchase credits" for LTE and satellite service valued at $4.5B USD.
Under the convoluted deal, which ties the two companies closely together, Sprint may be able to purchase extra LTE services from LightSquared, using the network it was paid to deploy. Other carriers may also purchase LightSquared services (perhaps AT&T or Verizon).
LightSquared, who sells service to a number of small operators, such as Cellular South, also entered into a contract for 3G nationwide roaming on Sprint's network. This part of the deal should mean extra money for Sprint, and could prove a boon to local network subscribers traveling around the country.
Overall the deal seems like a smart one all around. Cash-strapped Sprint gets a big payday and the chance to sell LTE phones like the HTC Thunderbolt by HTC Corp. (
) for the first time. And LightSquared gains valuable infrastructure to license to players big and small.
The biggest seeming potential downside is the quandary the deal leaves Sprint's WiMAX network. Now that Sprint is officially going to be adopting LTE, customers may be hesitant to purchase WiMAX handsets like the
HTC EVO 3D
by Samsung Electronics Comp., Ltd. (
) -- particularly when Sprint charges $10 USD extra per month for WiMAX data plans on those phones. A big question going ahead is whether Sprint will continue to expand its WiMAX network, or focus its efforts solely on LTE, going forward.
This article is over a month old, voting and posting comments is disabled
7/29/2011 4:30:57 AM
Except that this problem was solved a month ago by shifting to a different Frequency slot, rendering your arguement moot.
7/29/2011 7:04:14 AM
Only in the minds of LightSquared executives. All of their opponents are still firmly against it.
And LightSquared didn't shift to a different frequency slot, they merely want to start using the slightly farther away 10 MHz for the first couple of years before using the closest 10 MHz. But even using only the farther 10 MHz renders all high precision GPS useless and this plan was only hatched up after testing was done and showed utter destruction to GPS in America.
"Folks that want porn can buy an Android phone." -- Steve Jobs
Reviewed: HTC EVO 3D Smartphone, EVO View 4G Tablet
June 17, 2011, 7:46 AM
HTC's ThunderBolt Smartphone Ready to Light Up Verizon's LTE Network
March 15, 2011, 1:31 PM
Sprint Considers LTE, Verizon LTE Hits Detroit
February 16, 2011, 8:15 AM
Samsung Epic 4G, the Fastest Android Smartphone, Hits Sprint
August 12, 2010, 9:36 AM
Sprint WiMAX Available in Five New Markets
November 3, 2009, 9:53 AM
MSI's AMD Richland (A10)/Neptune (7/8xxxM) Gaming Notebooks Start at $1,299 USD
May 22, 2013, 3:15 PM
Apples Tries to Use Decade-Old Patents to Ban Samsung Galaxy S IV
May 22, 2013, 3:00 PM
Intel Shake-Up to Focus on Mobile, New Devices
May 22, 2013, 11:04 AM
Report: DISH CEO Makes Aggressive $2B USD Bid for LightSquared's Spectrum
May 20, 2013, 10:25 PM
Apple Releases Tim Cook's Testimony on Corporate Tax Laws
May 20, 2013, 7:40 PM
Apple's Tim Cook to Talk Profit Shifting, Taxes at U.S. Senate Hearing
May 20, 2013, 1:44 PM
Most Popular Articles
High School Student Creates Storage Device that Can Charge in 20 Seconds
May 20, 2013, 6:51 AM
Google Announces "Pure" Galaxy Nexus S4 for $649, Android Updates
May 15, 2013, 1:42 PM
Seawater Cooling Saves Data Center Big Bucks, Energy, Despite Jellyfish Issues
May 17, 2013, 3:23 PM
U.S. Federal Traffic Board Wants to Make Drunk Driving Threshold Far Harsher
May 15, 2013, 11:32 AM
Newegg Legal Chief: "We don't Feed the Trolls"; Defeats Bell Lab Shell Comp.
May 17, 2013, 10:11 AM
Latest Blog Posts
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
Elon Musk Willing to Spend More Money on Widening of 405 Freeway
Apr 26, 2013, 7:28 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information