Why Sprint is bullish on its WiMax gamble

10.11.2006

Then why would somebody buy an EV-DO phone? EV-DO will have features conducive to the handset voice experience like push-to-talk and mobile voice-over-IP. So it'll be more voice-centric. If you had a high-end multimedia application like TV or a large number of audio files to download, WiMax would make sense. For nonvoice, data-centric entertainment devices, WiMax would make more sense.

Sprint and the other cellular carriers are pushing media applications like audio and TV for their EV-DO networks. Would those applications be shifted over to WiMax? We will want to transfer a lot of that traffic to WiMax. On a per-megabyte basis, those applications make sense on WiMax. But a lot of devices will be dual-mode EV-DO and WiMax.

When EV-DO was rolled out, it was touted as mobile broadband. Now it sounds like Sprint is moving EV-DO back to the voice realm. It will be device-centric. There will be more EV-DO handset voice devices than WiMax. So there will be certain devices and applications that EV-DO is well-suited for and certain applications that WiMax is better suited for.

You mentioned that EV-DO might be a good fit with VoIP. Wouldn't WiMax be a better fit? For stationary VoIP, there will a WiMax solution when we launch. To provide a truly mobile experience, we think our EV-DO CDMA [Code Division Multiple Access] network will be a superior voice network into the foreseeable future. For push to-talk and voice over IP, CDMA will be the way to go. EV-DO Rev A will be used for push to talk. It'll be a nationwide superior network for push to talk.

So you won't be using the existing cellular network for push-to-talk anymore? Correct.