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Sprint Nextel Outlines Plans for EV-DO, WiMAX, and Cable

Company Building A Hybrid Device For iDEN and CDMA

      

Sprint Nextel will move ahead to upgrade its EV-DO Rev. A network including building a hybrid device for integrated Digital Enhanced Network (iDEN) and CDMA traffic and continue to focus on a fixed-mobile convergence-centric (FMC) joint venture with cable operators this year. Beyond that, the carrier will move ahead as quickly as possible on a mobile WiMAX play beginning in 2008.

“We are rapidly deploying the fastest and broadest broadband network (and) we’re making considerable progress on our WiMAX plan and we continue realize significant merger synergies (with Nextel),” said Gary Forsee, chairman-CEO of Sprint Nextel.


During a conference call outlining generally positive fourth quarter results, Sprint Nextel executives made it clear that broadband in all its iterations – including as part of the long distance business – is the carrier’s going-forward focus.

“We are rapidly deploying the fastest and broadest broadband network (and) we’re making considerable progress on our WiMAX plan and we continue realize significant merger synergies (with Nextel),” said Gary Forsee, chairman-CEO of Sprint Nextel.

A first step in this process, he said, is integrating Sprint’s CDMA-based network with Nextel’s iDEN push-to-talk gear. This, he said, is being accomplished via PowerSource phones being built by Motorola and by refocusing its distribution channels on a business model that includes Nextel as well as Sprint gear.

“A vast majority of our dealers are enthused beyond any point we’ve seen them for a vast number of quarters,” Forsee said. They are especially excited about the potential for PowerSource phones and “that only gets better as we move into the later stages of the first quarter and second quarter with EV-DO available PowerSource devices,” he continued.

Sprint Nextel, too, is showing continued enthusiasm for its joint venture (JV) with the cable industry that is expected to blend the carrier’s mobile resources with the broadband content and capabilities of cable providers, including a fixed- mobile convergence (FMC) play.

“Initial product development for video, e-mail, portal, voice mail and handset integration is on schedule and we’ve completed the very important steps of linking our billing and service platforms,” Forsee said. “Additionally, development continues on automation and new products that will be launched during the course of 2007.”

The first six commercial markets have been launched and more than 30 are planned for the year, Forsee said.

WiMAX, where Sprint has announced both initial markets – Baltimore-Washington, D.C. and Chicago – and a bevy of vendors, ID on schedule for 2008, he said, with the first WiMAX-enabled devices being more conventional laptop computers and PDAs and mobile phones entering the business a little later.

WiMAX progress is dependent on technology but “we’ve seen significant progress on devices and chipsets,” he said

Forsee cited work being done by Intel in multi-band chipsets; Samsung with both devices and plans to enter the chipset space; and Motorola and Nokia for next-generation devices as well as that “LG Electronics is committed to develop multimedia devices to work on Sprint’s WiMAX network (so) you can see significant progress under way on many fronts.”

Perhaps not surprisingly, Forsee said that Sprint Nextel would continue to emphasize its long distance business a key component of its broadband play and as a fundamental piece of its IP strategy with enterprise customers as they move from ATM and frame relay networks to IP and MPLS.

“The underpinning of that is that long distance network,” he said. “It is core to our strategy.”

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