Sprint Nextel begins selling HTC Evo, a 4G handset first

Sprint Nextel Corp.’s HTC Evo 4G handset went on sale today, accompanied by an advertising campaign that focuses on “first” inventions, starting with the wheel and including gramophones, trains, planes, rocketships, TVs, laptops and of course, cellphones.
The dual-mode smartphone, built by HTC Corp., works on partner Clearwire Corp.’s WiMAX network where coverage is available and drops down to Sprint’s CDMA EV-DO network when coverage is not available. Since Clearwire, Sprint and the cable companies formed their partnership and began rolling out standardized WiMAX technology, the companies selling the service have been touting it as a mobile DSL replacement. However, Sprint has been advertising the Evo under its “What can you do with 4G?” marketing campaign in anticipation of the Evo launch. WiMAX coverage is available in 34 markets.
The handset sells for $200 with a two-year service agreement after a $100 mail-in rebate with a new line activation or eligible upgrade. Sprint is using its retail and business direct sales channels, tele-sales, online sales, and through Wal-Mart, Best Buy and RadioShack stores to sell the device.
“Unlike the Pre, this is a technological tour de force,” noted Ross Rubin, executive director of industry analysis at The NPD Group. “From a specification point of view, the device is top of the line in almost every respect.”
Rubin noted that anticipation for the EVO likely is not as strong as T-Mobile USA Inc.’s launch of the G1 handset in fall 2008, also built by HTC, because the Evo is a refinement of Google Inc.’s Android operating system. Nevertheless, Sprint is further along in its 4G rollout than T-Mobile was in its 3G rollout when it launched the G1 on its 3G network. “Sprint is positioning the device as 4G, but also a strong 3G experience,” the analyst said.
In today’s press release announcing the device’s availability, Sprint played up its accompanying unlimited data plan, which is interesting in light of AT&T Mobility’s announcement earlier this week that it would start capping its data usage at 2 gigabytes per month. For its part, AT&T noted that 98% of its users consume less than 2GB per month.
“With HTC Evo 4G’s advanced features, like video chat and 3G/4G capability, customers may find themselves using a lot more data, so a plan with unlimited use is key,” stated Carrie MacGillivray, program manager at research firm IDC, in the Sprint press release. “Customers are looking for simplicity in their voice and data plans. Unlimited plans offer new Evo users the flexibility to use the device as they desire without any worry about exceeding a predetermined limit.”
Clearwire customers, which are using modems and USBs, are averaging 7 GB of data usage per month, CTO John Saw said previously, compared to 3G data card users, who average 1.4 GB per month and smartphone users who average 200 MB of use per month.
The handset uses the Android 2.1 operating system and features Qualcomm Inc.’s 1 GHz Snapdragon processor. It has a 4.3 inch screen and two cameras for two-way video chat, which comes as a pre-installed application.
Customers who buy the device have to sign up for Sprint’s Simply Everything Data 450 plan, plus pay an additional $10 for unlimited Web, texting and calling. In addition, customers who want to use the Evo as a mobile hotspot must pay an additional $30. The Evo can connect eight Wi-Fi devices.
Sprint is also touting Evo’s packaging, which is made of 100% recyclable materials, and partially made from sugar cane, which an increasingly popular choice for sustainable packaging.
Boost for HTC
For its part, the HTC branding in the name of the device is likely to give the handset manufacturer more name-recognition in the United States. The company has been building smartphones for years and now is trying to build awareness with consumers with its “Quietly Brilliant” ad campaign.