Summary
1. The evidence has been slowly building that Sprint would have to go with LTE as its 4G technology. 2. In late 2007, we asserted that, “WiMAX is increasingly perceived by analysts to be just a sucking sound for large amounts of capital.” 3. Sprint’s reply to the blog, which started the speculation, winds up being yet another example of the lack of true commitment by the wireless carrier to WiMAX.
Analysis
About a year ago, we wrote an analysis entitled, “Do Not Rule Out LTE for Sprint.” The wireless operator has consistently had a compulsion to initially not use the same technology as Verizon – only in the end to do the same. Ultimately, Sprint did go with 1xRTT and EV-DO. And now it appears that it will head again in the same direction with 4G – LTE.
The most convincing argument in support of Sprint moving away from WiMAX was when Sprint gave up the keys totally to Clearwire on the Xohm operation. And then there were all of the other signs from Sprint including 1) the discussion about the future convergence of WiMAX with LTE, 2) the delaying tactics to help run out the clock to hand over control to Clearwire, 3) the confusion surrounding CAPEX budgets, 4) the ambiguity regarding WiMAX trials as well as commercial availability, 5) the lack of credibility of certain technology executives, 6) the suspected lack of funds to adequately test WiMAX equipment and 7) the absence of hype on WiMAX at the 2008 CTIA conference.
For Sprint, WiMAX was mainly a Hail Mary and a distraction from its enormous problems. So, it is not surprising at all that Sprint is apparently exploring LTE.
