Sprint Plans To Redouble Push For More 4G, Android Devices
Sprint Nextel Corp. (S) plans to launch more devices capable of running on its superfast wireless network this year, seeking to hold on to its lead in 4G as its competitors begin trumpeting their rival speedy services. Sprint will exceed the 20 fourth-generation wireless products--including smartphones and laptop cards--sold last year, according to Fared Adib, vice president of product development and operations. In addition, he said, the company will launch more Android devices, with roughly 70% of its portfolio for the year running on Google Inc.'s (GOOG) mobile operating system.
Sprint's early embrace of 4G and Android was crucial in sparking a turnaround, allowing the nation's third-largest carrier by subscriber base to return to customer growth last year for the first time since 2007. But that advantage has eroded as its competitors begin to roll out their own 4G smartphones running on Android.
Adib declined to say specifically say how many Android and 4G devices would be released this year. But he added that he believes the company's quick start with both continues to give it an advantage. He noted that Sprint's manufacturing partners had to go through a learning curve of a year and a half to develop products running on its 4G network, which uses a technology called WiMax.
He said he believes that learning curve will apply to companies building devices for Verizon Wireless, which launched its own 4G network with another technology called LTE.
"A lot of our (original equipment manufacturers) have experience with 4G, so it's easier to build products," he told Dow Jones Newswires.
Still, he acknowledged the mounting competition and rhetoric around 4G, which rivals AT&T Inc. (T), Verizon Wireless and T-Mobile USA have also embraced.
Adib said 4G is becoming a standard feature for all carriers, but there are other factors in winning over customers, including monthly rate plans and even the specifications of each device. He added he expects to see smartphones with quad-core processors next year, which are faster than many computers.
He also acknowledged that consumers still need more education on what constitutes 4G, particularly because the term is now so widely used.
The company launched the Evo Shift, its third 4G smartphone, in January, and plans to sell a 4G version of the Research in Motion Ltd. (RIMM) Playbook tablet in the summer.
The other leg of Sprint's strategy has been its embrace of Android. It was the second carrier to unveil a major Android smartphone, and its Evo 4G, made by HTC Corp. (HTCXF, 2498.TW), is the company's best-selling phone and heavily contributed to contract customer growth last year.
Sprint plans to report fourth-quarter results on Thursday.
On Monday, Sprint unveiled another Android device, the Echo from Kyocera Corp.'s (KYO, 6971.TO) U.S. unit. The unique device features two 3.5-inch touchscreens that can be stacked side by side to form a mini-tablet. One of the screens can be tucked under the other to form a more traditional smartphone.
Adib said that there will likely be similar products down the line.
Kyocera is heavily invested in the phone and expects this to become a family of dual-screen products, according to Gary Peterson, director of marketing for Kyocera's U.S. arm.
Sprint isn't the only one putting its resources behind Android. Verizon Wireless--a joint venture between Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD)--has spent heavily on creating a premium Droid brand out of Android, and AT&T said it would sell a dozen Android devices this year.
"It's obvious the momentum is with Android," Adib said.
Sprint shares recently fell 1.7% to $4.33.
Adib declined to say specifically say how many Android and 4G devices would be released this year. But he added that he believes the company's quick start with both continues to give it an advantage. He noted that Sprint's manufacturing partners had to go through a learning curve of a year and a half to develop products running on its 4G network, which uses a technology called WiMax.
He said he believes that learning curve will apply to companies building devices for Verizon Wireless, which launched its own 4G network with another technology called LTE.
"A lot of our (original equipment manufacturers) have experience with 4G, so it's easier to build products," he told Dow Jones Newswires.
Still, he acknowledged the mounting competition and rhetoric around 4G, which rivals AT&T Inc. (T), Verizon Wireless and T-Mobile USA have also embraced.
Adib said 4G is becoming a standard feature for all carriers, but there are other factors in winning over customers, including monthly rate plans and even the specifications of each device. He added he expects to see smartphones with quad-core processors next year, which are faster than many computers.
He also acknowledged that consumers still need more education on what constitutes 4G, particularly because the term is now so widely used.
The company launched the Evo Shift, its third 4G smartphone, in January, and plans to sell a 4G version of the Research in Motion Ltd. (RIMM) Playbook tablet in the summer.
The other leg of Sprint's strategy has been its embrace of Android. It was the second carrier to unveil a major Android smartphone, and its Evo 4G, made by HTC Corp. (HTCXF, 2498.TW), is the company's best-selling phone and heavily contributed to contract customer growth last year.
Sprint plans to report fourth-quarter results on Thursday.
On Monday, Sprint unveiled another Android device, the Echo from Kyocera Corp.'s (KYO, 6971.TO) U.S. unit. The unique device features two 3.5-inch touchscreens that can be stacked side by side to form a mini-tablet. One of the screens can be tucked under the other to form a more traditional smartphone.
Adib said that there will likely be similar products down the line.
Kyocera is heavily invested in the phone and expects this to become a family of dual-screen products, according to Gary Peterson, director of marketing for Kyocera's U.S. arm.
Sprint isn't the only one putting its resources behind Android. Verizon Wireless--a joint venture between Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD)--has spent heavily on creating a premium Droid brand out of Android, and AT&T said it would sell a dozen Android devices this year.
"It's obvious the momentum is with Android," Adib said.
Sprint shares recently fell 1.7% to $4.33.
Source: http://online.wsj.com/article/BT-CO-20110208-711636.html
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