Is WiMax still a good bet for Sprint?
Is WiMax worth it for Sprint?
With Verizon claiming LTE (Long-Term Evolution) rollout to be in the later phase of 2010 with 4G like speeds, Sprint is going full speed ahead into the 4G space with its deployment (and sizeable investment) in WiMax with Clearwire. With worrisome fourth-quarter earnings performances from both companies, you sure can tell who’s willing to gamble as carriers lock down on subscribers and reduce churn by introducing deep price cuts to keep their current customers happy. Sprint reported -$1.6 billion in losses and over 1.3 million subscribers lost in the fourth quarter compared to Verizon’s 1.4 million and AT&T’s 2.1 million subscriber gains for the fourth quarter alone. Sprint ended the year with 49.3 million subscribers and is likely to continue this hemorrhaging for many months until new products and lines of services are introduced like WiMax and the Palm Pre.
But here’s the fundamental question… Is WiMax worth it? Does the subscriber model still apply? Do we need these speeds when we have 3G and HSPA nationwide? How can you justify the cost when you travel and it’s only in these two cities? Can hardware manufacturers (LG, Intel) stay in the WiMax business offering WiMax chips when there no one is buying them? Is this too early in the adoption curb?
Let’s see if WiMax can continue its deployment into more cities and expand its footprint nationally going beyond Baltimore and Portland. I would like to see this deployed in San Francisco, Los Angeles, Chicago, and Washington DC. If deployment takes any longer, Sprint may have to reconsider its investment and call this 4G race lost, or else Sprint will have to start looking to cut more jobs and offer steeper discounts.
Offer this in Los Angeles and I’ll be the first one subscribing to it