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http://www.infoworld.com/articles/h...514hnsprint.xml
Sprint PCS to Launch Advanced Network in August
Tue May 14, 4:34 PM ET
By Yukari Iwatani
CHICAGO (Reuters) - Sprint PCS Group will likely roll out its long-
anticipated advanced wireless network capable of high-speed Internet access
nationwide in August, industry sources said on Tuesday.
Sources said the fourth-largest wireless telephone company and its regional
affiliates, which sell wireless service under the Sprint PCS brand, should
have the upgraded network ready in May and devices such as cell telephones
and PC cards in stock by the end of June.
Sprint PCS spokesman Dan Wilinsky declined to comment except to say: "We're
still on track for a summer launch. We're hearing a buildup of customer
excitement about the pending nationwide roll-out."
The Kansas City, Missouri-based firm said in the past it plans to launch its
CDMA2000 1X network across the country in mid-summer of 2002.
While its rivals, Verizon Wireless , Cingular Wireless and AT&T Wireless ,
have already begun rolling out high-speed data-capable networks, Sprint PCS
would be the first to offer an advanced wireless service nationwide.
1X is the next-generation version of Qualcomm Inc.'s Code Division Multiple
Access (CDMA (news - web sites)) technology. It offers wireless Internet
access via cell telephones and PC cards comparable to a home dial-up
connection. It also doubles the voice capacity on networks.
Customers would be able to send and receive e-mail, download pictures and
music and eventually watch video over wireless devices.
CDMA is the dominant wireless standard in the United States and the
second-most commonly used standard in the world behind the Global System for
Mobile Communications (GSM).
Advanced data-capable networks are expected to be the next catalyst for
growth in the wireless industry, which has suffered from slowing subscriber
growth after years of frenetic gains. About 45 percent of Americans already
own cell phones.
William Benton, wireless analyst with William Blair & Co., said Sprint PCS
was using the time until August to decide how to price the new service and
train its sales and marketing force.
"They're trying to get the basic blocking and tackling ready from a billing
and sales and marketing focus," he said.
Analysts agree that Sprint PCS has an opportunity to jump ahead of its
rivals in attracting customers to its new service this summer.
Verizon Wireless launched its 1X service in January in parts of its network,
but analysts have criticized its pricing structure. Customers pay an extra
$30 a month to use minutes from their voice plans for data. Heavy data users
can also pay based on actual data usage.
AT&T Wireless is rolling out a GSM-based advanced network called General
Packet Radio Service, but coverage and the availability of devices are
limited.
"I think they saw an opportunity when Verizon launched and saw the way they
priced it," said Jane Zweig, chief executive of wireless consulting firm the
Shosteck Group, "It makes sense for Sprint to get this right. They don't
want it to go wrong. They want to make sure that all the bugs are worked out
on that."
Sources said Sprint also wants to make sure everything works as well as
possible before they roll out the service because of past criticism about
the poor quality of its network.
One source close to the company said Sprint was learning from its mistake
when it rolled out its first wireless Web service. After a lot of fanfare,
customers signed up for the service only to find out that actual
applications for it was limited, the source said.
Sprint shares closed up 9 cents at $10.14 on the New York Stock Exchange
(news - web sites).
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