Sprint Plans 4G Smartphone

Sprint Nextel (S: 3.34 0.00 0.00%) continues to lead the 4G hoopla in the US as the third largest wireless carrier has revealed its plan to unveil its first 4G smartphone during first-half 2010, months ahead of market expectations. As such, the prolonged wait for a 4G handset is likely to culminate in the summer of 2010.
 
The dual-mode (3G/4G capable) smartphone, rumored to be “HTC Supersonic”, is expected to run on Google’s (GOOG: 535.07 0.00 0.00%) Android platform. The device, which is likely to feature a 4.3-inch touchscreen display and 1 gigahertz (GHz) Snapdragon processor, will be targeted at enterprise and government markets besides consumers. It will be the first 4G compatible phone in the US.
 
Sprint offers its 4G service under the “Sprint 4G” brand and leverages the WiMax (a mobile broadband technology) network operated by Clearwire Corp. (CLWR: 6.98 0.00 0.00%) in which it holds a 51% stake. The 4G WiMax network offers up to 10 times faster throughput than the existing 3G deployments. The downlink speeds enabled by the 4G WiMax network averages 3-6 megabits per second (Mbps) with peak speed exceeding 10 Mbps.  
 
Sprint leapfrogged over its larger US peers by becoming the first carrier to deploy 4G services in the US with the commercial launch in Baltimore in October 2008. The company’s 4G services now cover 27 markets and 32 million people in the US and are expected to address 120 million people by 2010.
 
Since the 4G network launch, Sprint has introduced an array of 4G devices such as dual-mode modems, mobile hotspots and PC cards. The carrier launched a new dual-mode wireless router called “Overdrive” in January 2010, which enables users to seamlessly connect upto five Wi-Fi (wireless broadband) devices simultaneously to Sprint’s 4G network. However, Sprint has been constantly under pressure as consumers increasingly clamor for a 4G compatible phone.
 
Sprint’s 4G WiMax initiative represents a response to the emerging 4G wireless broadband standard known as Long-Term Evolution (“LTE”), which has demonstrated higher network speeds than WiMax in technical trials. The company’s larger peers Verizon (VZ: 28.74 0.00 0.00%) and AT&T (T: 24.83 0.00 0.00%) are warming up to deploy their 4G LTE networks in 2010 and 2011, respectively.
 
Expansion of 4G services is vital for Sprint’s survival in the US wireless market given its continued market share losses to larger rivals. The much-anticipated 4G smartphone will enable the company to boost its WiMax network as the device will foster the effective use of 4G bandwidth for data-rich applications. Sprint promises that 2010 will be the year of WiMax and the new smartphone will help the carrier to entice more users to its network.