Thursday, August 10, 2006

Sprint to Invest $3 Billion in WiMax Network

Sprint plans to invest $1 billion in 2007 and between $1.5 billion and $2 billion in 2008 to build out a fourth generation wireless network based on the WiMax wireless broadband standard. It will work with Intel to build chipsets, and Motorola and Samsung to provide the handsets in order to create the infrastructure needed to operate the network. The handheld chipsets to operate on the network will be capable of delivering streaming video, faster download data, and other services. Competitors in the mobile industry are still trying to figure out how to integrate 3G or third generation networks and services. Sprint intends to use a 'unique business model' to foster adoption of WiMax. Its investments will create a network that will be available at a cost similar to 3G networks, but will operate at a much higher speed.
Sprint Nextel is taking "a major step forward" by linking the Internet and mobile communications, according to CEO Gary Forsee. "We'll give customers the power to harness business information and personal entertainment easily and inexpensively -- and in ways that they will one day wonder how they lived without."

Competitors speculate that Sprints fourth generation WiMax investment will not be an improvement for broadband mobile networking, but will function as a parallel service that will be hard for consumers to determine any significant differences in service and product offerings.
http://www.ecommercetimes.com/story/qVWL00GgUlaNRq/Sprint-to-Invest-3-Billion-in-WiMax-Network.xhtml

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