Thursday, March 25, 2010

How T-Mobile Could Save Sprint


It is no doubt that Sprint is trying to make a comeback from their heavy customer losses and customer service issues the company has had in the past. And now that they have become the first U.S. carrier to offer a 4G phone, and the first with a 4G network, it is clear that they are going to try to use WiMax to win back customers and to increase their revenue. But recently, the other carriers, both in the United States and around the globe, have been choosing the competing 4G technology- LTE- over WiMax. What does this mean? Well, if wiMax doesn't have as many subscribers or carriers using it, it means that most phone manufacturers will produce more phones for LTE networks, much like we have already seen with the GSM/CDMA conflict in 3G already. It also means that LTE equipment would be more readily available than WiMax gear, making everything from phones to the tower equipment cheaper than WiMax. So, you ask, what does T-Mobile have to do with this? Well, the company is currently focusing on ramping up it's 3G network before making the jump to 4G, and hasn't selected a technology that they would use for their next network. Their parent company has already picked LTE, but there have been reports lately that T-Mobile is in talks with Sprint/Clear about using their WiMax network for their customers 4G gear. If this is true, and a deal comes around that T-Mobile jumps on the Clear WiMax network (or just plain chooses WiMax over LTE), this could change the game in 4G and for Sprint. Getting another carrier in the United States market to use WiMax would mean more manufacturers would want to make a WiMax phone instead of or in addition to a LTE phone, and mean that another company would be in the mix to help contribute money to network expansion, if they join forces with Sprint and Clear. Many people already consider WiMax to be an outdated technology, or one that will disappear in the next few years, which might be true if T-Mobile decides to go with LTE instead. This could mean that manufacturers wouldn't bother making a WiMax version of phones, or would just make phones for LTE networks. This could lead to many customers migrating away from Sprint and Clear, just to get better and newer phones on other networks. An increase in the pricing of 4G might also become a reality, as Sprint and Clear pay more for their network equipment than LTE carriers, and as customers migrate away to other carriers to get better phones or cheaper prices.

There is nothing decided yet in the 4G wars, and everything is just heating up in the 4G market. Sprint and Clear have established the lead for now, but if other networks can offer 4G with cheaper plans and better devices, then Sprint will be in one big pinch if they don't have a network to back up the pricing and phones.

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