MetroPCS launches LTE smart phone

MetroPCS Communications Inc. (PCS) continued its pioneering work in the LTE space announcing today the imminent availability of Samsung Telecommunications America’s LTE-equipped Galaxy Indulge smart phone. The device is the first LTE-enabled smart phone to hit the domestic market, just beating out scheduled deployments by larger rival Verizon Wireless.
The device sports a 3.5-inch touchscreen, a slide-out QWERTY keyboard, 3-megapixel camera, a 1 GHz Samsung Hummingbird processor and runs Google Inc.’s Android 2.2 operating system. In addition to support for LTE, the device also includes a CDMA radio for voice calling and as a fall back for data services. MetroPCS noted that it currently offers LTE in 13 of its 14 markets, with Tampa, Fla., the only market still waiting on the LTE deployment. Ed Chao, SVP of engineering and network operations at MetroPCS, noted that the Tampa market was still waiting on the Department of Defense to free up some spectrum related to the 1.7/2.1 GHz spectrum band before proceeding with the LTE deployment.
The device is set to sell for $399 without a contract and be available with the carrier’s recently adjusted LTE plans. The Indulge will also join the previously launched Craft as the carrier’s LTE-enabled devices.
MetroPCS noted that it has been pleased with sales of the Craft device, and that the price point for the Indulge provides a compelling alternative for those customers looking for a more feature-packed device. Those customers have also been drawn to the carrier’s premium $60 per month plan that includes unlimited access to all of MetroPCS’ services and provides a nice bump for the carrier’s average revenue per user.
“We’re confident our customer base will be willing to pay,” explained Tony Lau, director of handset product management at MetroPCS. “We have launched BlackBerry products in the past at this price point and saw good sell through. Some of our customers may be of a lower income bracket, but we have found they are willing to save up and pay for certain devices.”
As for the performance of its LTE network, Chao said the carrier has been pleased with the ability of the technology to handle data traffic. MetroPCS is using 10 megahertz of spectrum in support of its LTE network in most markets, though in some it has been forced to go with smaller slices.
The carrier’s focus on urban markets has also allowed it to take advantage of competitive rates on Ethernet backhaul in support of its LTE network that in most of its markets mirrors the coverage of its legacy CDMA offering. Chao added that the carrier is using its 1.7/2.1 spectrum for a majority of its LTE network, with some markets also using its 1.9 GHz assets.
While rival Leap Wireless International Inc. has begun to run into spectrum constraints on its network due to strong demand for its mobile broadband and smart phone services, Chao said MetroPCS has been able to avoid those issues as it has not moved into the data-heavy wireless modem space.
MetroPCS is also continuing to trial Voice over LTE solutions that are designed to handle voice traffic over LTE networks. Chao said the carrier was on track to roll out a commercial deployment during the second half of this year.