RESTON, Va.—Ali Tabassi, vice president for technology development at Sprint Nextel Corp., predicted diverse spectrum and technology assets, combined with proven strategic partners, will give the No. 3 mobile-phone carrier a substantial headstart over competitors in wireless broadband deployment in the United States.
“We truly believe through our spectrum position…we have a good 12 to 24 months lead over any of our competitors,” said Tabassi at last week’s Wireless Communications Association International conference held here.
Sprint Nextel announced its commitment to WiMAX technology in August, and Tabassi said the company plans to begin rolling out WiMAX using its expansive 2.5 GHz spectrum holdings in the fourth quarter of 2007. The nation’s capital could be Sprint Nextel’s first WiMAX market.
In addition to its 2.5 GHz holdings, Sprint Nextel controls spectrum in the 800 MHz, 900 MHz and 1.9 GHz bands for cell-phone and wireless Internet services. In total, Sprint Nextel said it controls more wireless broadband spectrum than any other of the four national mobile-phone carriers as well as wireless broadband competitor, Clearwire Corp.
In approving Sprint Corp.’s $35 billion purchase of Nextel Communications Inc. last year, the FCC imposed 2.5 GHz wireless broadband service milestones on the merged company. The first requires Sprint Nextel to offer wireless broadband in the band to at least 15 million Americans within four years of the Aug. 8, 2005, order. The second milestone requires the carrier to serve an additional 15 million Americans within six years.
“We will not only meet, but exceed that,” said Tabassi.
WiMAX promises wireless data speeds far in excess of those over wireless networks operated by Sprint Nextel, Cingular Wireless L.L.C. and Verizon Wireless, though throughput speeds over cellular systems are expected to accelerate by the time WiMAX networks begin operation. Sprint Nextel is working closely with vendors Motorola Inc., Intel Corp. and Samsung Corp. on its WiMAX initiative.
Tabassi said winning bidders in the recently completely advanced wireless services auction likely will have to wait one-to-three years before actually securing spectrum in the 1710-1755 MHz and 2110-2155 MHz bands because of the time needed to negotiate carrier-financed relocation of incumbent licensees from those frequencies to other bands. Sprint Nextel and its cable TV allies ponied up more than $2 billion for 137 licenses in the AWS auction.
Tabassi, citing AWS auction disclosure restrictions, declined to say how the cable TV component will fit into the mobile phone/WiMAX mix.
Tabassi said 4G—a term increasingly tossed around but which lacks any technical basis—will be a big jump from 3G in terms of data speed, visually rich content and the amalgam of applications it will offer. “It’s a major change,” said Tabassi. “It’s a huge difference with what you have experienced in the wireless arena in the past,” he added.
Many industry analysts expect 4G services to be based on an all-IP infrastructure, similar to what powers the wired Internet.
For Sprint Nextel, according to Tabassi, it also means getting away from the traditional wireless telecom business model of heavy subsidization. Rather, he said, the vision is to shift Sprint Nextel from a telecom carrier to a communications and media distribution company.
Gerard Salemme, executive vice president for strategy, policy and external affairs at Clearwire, said the Craig McCaw-led firm is making good progress transitioning to WiMAX and that strategic partnerships will be a major factor in achieving competitiveness in the wireless broadband space. There has been speculation Clearwire, needing additional spectrum, could be a good match for a satellite company seeking a high-speed wireless Internet play.
“It’s [wireless broadband market] going to be competitive. That’s how life is,” said Salemme.
