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Sprint's 4G update today.(Credit:Roger Cheng/CNET)
Sprint Nextel said today that it plans to aggressively rollout its own 4G LTE service next year as it looks to avoid falling behind in the network race.
Sprint plans to launch its next-generation network that will 120 million people by the end of next year, and wrap up with coverage of 250 million people by the end of 2013. The company confirmed 15 LTE devices will be available next year, with the first to launch by the middle of summer, CNET previously reported.
"There will be an aggressive rollout of LTE," said Steve Elfman, head of network operations for Sprint, during the company's investor presentation today.
By moving on its own, Sprint will be able to move to LTE--a newer, and speedier wireless technology--quicker than if it relied on Clearwire, which currently furnishes it with an older 4G technology called WiMax. Clearwire has opted to make the switch to LTE as well, but is still seeking financing for its upgrade.
Indeed, early during the presentation, Clearwire was never mentioned, with the company only referencing WiMax. Clearwire's stock retreated today.
Sprint Chief Executive Dan Hesse reiterated that the company has a two-year wholesale agreement that lasts through next year, but didn't comment on what would happen beyond 2012.
"I'm not in a position to announce anything," he said on the sidelines of the event.
Sprint CEO Dan Hesse speaks to his leadership team at an investor meeting today.(Credit:Roger Cheng/CNET)
Sprint's LTE adoption is critical as it seeks to keep pace with Verizon Wireless and AT&T, which have both opted to deploy their own next-generation networks using the same technology. While Sprint had the edge for years with its WiMax service, its rivals have caught up and, in Verizon's case, surpassed it.
The announcement adds to a big week for Sprint. The company became the latest carrier to offer theiPhone, joining larger rivals AT&T and Verizon Wireless, when Apple unveiled its iPhone 4S on Tuesday. Elfman said he believes the network will be able to handle the increased traffic that comes with the iPhone.
Sprint's Network Vision plan is the key to its upgrade plans. It's an overhaul of the company's infrastructure, allowing it to straddle multiple network technologies, including its core 3G CDMA service, as well as Nextel iDEN service, which it plans to shut down in 2013.
If Network Vision was available a few years ago, Sprint would be in a different position, Hesse said.
"Network Vision is the right approach for Sprint," said Will Power, an analyst at Robert W. Baird & Co.
Sprint plans to use 1.9-gigahertz spectrum as the foundation for its LTE network. It also has a networking-sharing deal with LightSquared, a start-up that will pay Sprint to host and maintain its own 4G network. The deal gives Sprint the option to use some of LightSquared's spectrum, but is still contingent upon LightSquared getting the proper approval for its rollout.
The company plans to launch dual-band LTE/CDMA smartphones next year, as well astablets and other 4G devices, said Fared Adib, head of products for Sprint.
Clearwire's WiMax network has essentially hit its cap at 71 markets, and alongside the funding for its LTE upgrade, is also looking for further financing for its regular operations. Elfman said Sprint plans to continue selling WiMax devices through next year.
By October 20, Verizon will have covered 164 markets in the country with its rapidly expanding LTE network. AT&T, meanwhile, has launched its next-generation service in five cities, and plans to roll out more this year. It also has a souped-up version of its 3G network it also calls 4G.
Updated at 8:24 a.m. PT: to include confirmed details of 15 devices next year.
Updated at 8:01 a.m. PT: Includes an additional comment from Sprint CEO and an analyst, and background throughout.
Corrected at 8:01 a.m. PT: Sprint plans to cover 120 million people with 4G, not 120 markets next year. Likewise, it plans on covering 250 million people, not 260 markets.
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