Why Sprint is bullish on its WiMax gamble

10.11.2006

How will this network coexist with citywide Wi-Fi networks that some cities are starting to sponsor or install? In a metro area, we'll have total metrowide coverage. City Wi-Fi proposals I've seen are more like lots of hot spots. We view the difference in coverage to be significant. For true metro coverage, we think WiMax will be superior. We think there is a place for those municipal-based broadband networks, but they'll always have the potential for interference and competition since it's unlicensed spectrum. WiMax can guarantee a quality-of-service level that can't be done with Wi-Fi. It also has a level of security that can't be done with Wi-Fi.

So would you advise municipalities to wait? Those municipal-based Wi-Fi areas will exist just like there's always public transportation. Public transportation services a critical need. But there's also a big demand for privately owned automobiles. I don't think Ford considers public buses a competitor. It'll be the same in our case.

What about pricing? Broadband prices have come down. We'll have the ability, given our less expensive per-megabyte network costs, to offer value pricing aimed at the mass market. Specific pricing strategies haven't been determined yet, but we're going after the mass market.

Is that to imply that EV-DO isn't priced for the mass market? I think you'll see such a number of devices and device categories [with built-in WiMax support] that it'll be a much larger number of devices than EV-DO. Plus, we'll pursue a strategy of multiple devices per account that will be attractive. Imagine your laptop, your personal video player, all these devices, all being accessible from a single account with a single device portal. It'll be very easy and very user-friendly.

Sprint has pursued a strategy of working with cable carriers. What type of bundling can we expect after the WiMax network is rolled out? We see a lot of services and applications that will exponentially increase in our ability to bundle services together.