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Sprint PCS Launches 3G Network
pdp1144 writes "Sprint PCS launched the first nationwide 3G wireless network today. Code named Vision it will allow wireless data speeds starting at an average of 50 to 70 kbps." The question is, how much? If the data plan is such that you can use up a month's allotment in five minutes of downloading... Simson Garfinkel had a good column on this recently.
PCS Free & Clear with Vision - Initially ranging in price from $44. 99 to $119.99, PCS Free & Clear with Vision plans will include megabytes for data usage along with varying amounts of voice minutes, depending on the individual plan. For a limited time, Sprint will offer special introductory rate plans that provide more Anytime Minutes than standard Free & Clear plans; allow customers to share minutes with another PCS phone for no additional charge and each phone will have two megabytes of data to use. An example of the introductory PCS Free & Clear with Vision plans include the $89.99 per month plan that features 2,000 Anytime Minutes that can be used by an individual or shared between two people.
If I recall correctly, 2000 anytime minutes right now is $149, so this could be a good initial deal! There's other pricing for laptops.
-DJ
Finally catching up? In a way perhaps, but surpassing as well. Thank god for American capitalism and competition, even if it fragmented the market for a little while. CDMA technology is much better than GSM(w/TDMA), so Sprint should do very well with their nation wide network while all the GSM carriers around the world have to completely retrofit their systems for WCDMA 3/4G.
Actually, no need to do a "complete retrofit". Or, any more retrofitting than Sprint has to do.
When doing the transition from GSM to GPRS, you need a new core network (SGSN, GGSN, et al), to process packet data. This is rather reasonable. There is no need to do any refitting on the radio interfaces, except a Packet Unit to each base station controller.
The next upgrade comes when 3G comes, that is, UMTS in Europe. Now there is no need to refit the core - SGSN and GGSN are the same as before (well, they need a software upgrade, but that is about it). The radio interface of course needs upgrading, but the same upgrades are necessary when transitioning from CDMA -> WCDMA.
At the moment, it is more of a marketing and business decision than anything else. The technology is there, there is just no market for it yet (GPRS seems to be enough for everybody for now). The upgrades would be relatively cheap.
The actual model that we'll see in Europe will be a mixture of UMTS and GPRS networks. UMTS will cover cities and population centres. Your phone will sign up to UMTS network and do a hard handover to GPRS network when you go to rural areas - only thing you notice is that data transfer speed goes down. There is no need to set up UMTS network everywhere. I would imagine this is also the thing with Sprint's network...
In the future, it may even be possible that WLAN techniques will be used as a possible access medium. UMTS standard is pretty free on what the access technology is - in revision 5 there are actually such possibilities as xDSL(!) listed. Wired access to a wireless network core - probably simplifies things for operators that act both as ISPs and mobile network providers.
Just my two (euro)cents...
saw this posted over at the treocentral forums...its from Salomon Smith Barney discussing the 3G launch.
"We have been tracking the signs for Sprint's upcoming "3G" launch, regarding
the brand, launch date, price, and handset selection. Our checks have
indicated that Sprint's new brand for its "3G" wireless data service is PCS
Vision, which will be billed on bits and bytes, rather than minutes.
On timing, we believe there is substantial confusion over the "official" launch
date. Based on our channel checks, "3G" capable phones may go on sale in the
indirect channels in stores such as Best Buy and Circuit City, beginning on
August 8. The "official" launch in Sprint's direct stores may not occur until,
at least, August 12, and may extend to August 19.
On price, we find that Sprint PCS will build upon its national pricing
schematic with its introduction of data, rather than become more aggressive for
national voice minute pricing. We would emphasize the data pricing described
in this report are indications and are still subject to change ahead of the
launch. We have received indications that Sprint will maintain its current
pricing for national voice minutes, which is constructive for the industry.
However, the decision may limit the company's ability to improve its share
relative to the aggressive pricing tactics of its competitors. We find the
data pricing indications to still be somewhat expensive with a minimum
increment of around $10/month on the existing national plans for 2 MB and
likely around $0.02/Kilobyte thereafter. All-in, pricing is not substantially
cheaper than current data plans in the market.
On the handset front, we believe Sprint will launch with several new color
phones by Samsung, Sanyo, and LG as well as with a PC Card, likely from
Novatel. Price points for the handsets should range between $179.99 and
$279.99."
"* Branding -- We expect Sprint PCS to launch a new brand name for its "3G"
service, "PCS Vision." The service will offer applications such as MMS
(multi-media messaging), games, downloadable ring-tones and screen savers,
and ISP-like access for laptops/PDAs.
* Timing -- We find a substantial level of noise within the channels, regarding
the launch date of Sprint's "3G" service. Based on our channel checks, we
believe "3G" capable phones may go on sale in the indirect channels in store
such as Best Buy and Circuit City, beginning on August 8. New displays may
not be constructed until the weekend. The "official" launch may not occur
until, at least, August 12, and may extend to August 19. Our conclusion is
that August 8 will begin somewhat of a soft launch, with the promotional
campaign set for, at least, 1-2 weeks later. We find few employees have been
trained on the service, based on our discussions. Some employees expected to
be trained within the next week. Also, several company stores expected to
receive their full "3G" displays from Sprint within the next 7-10 days. We
do not believe the direct PCS stores are stocking material levels of
inventory of the new phones, yet.
* Pricing -- We have learned that Sprint PCS is currently planning to maintain
its national voice pricing and charge a premium for data access by the
megabyte and kilobyte. Our data points on pricing are preliminary and are
subject to change ahead of the launch. We believe Sprint will begin offering
data packages at an access level of $49.99 with data plans going up to
$119.99. The company will offer these plans on several new color-screen
phones with data capabilities as well as a PC-card modem at launch. Services
will initially focus around multi-media messaging (including digital
pictures), gaming, and laptop connectivity.
Figure 1 highlights the preliminary pricing indications we have received from
our research. Sprint has essentially added a $10 charge for 2 MB of data to
its popular national price points at $39.99 and $49.99. For 8 MB of data,
Sprint has typically added $20-$25 to each of the access charges. We expect
the additional charge per KB to be around $0.02 if customers break their
buckets.
FIGURE 1. PRELIMINARY INDICATIONS ON 3G PRICING
Monthly Charge
$49.99 $59.99 $74.99 $84.99 $89.99 $99.99 $119.99
Peak Min. 350 500 750 750 1,000 1,000 1,300
Off-Peak Min. 3,650 4,500 5,750 5,750 7,000 7,000 8,700
MB Data 2 2 2 8 2 8 8
Source: SSB research and estimates.
To put the pricing into perspective, we return to our VEP, voice-equivalent
pricing model, that is far from perfect, but allows us to compare the price
for data services on an apples-to-apples basis with voice. The methodology
uses average throughput of the data network to convert data traffic into
voice minutes. This can give us a back of the envelope measurement to
compare with voice capacity and pricing. We calculate a voice equivalent
price (VEP) per minute for a given data plan as follows:
where VEM, or voice equivalent minutes, is defined by the following formula:
Using average throughput of 30 kbps (our average 1X experience on Verizon's
Express Network), we find Sprint is pricing these buckets at a healthy
implied voice equivalent price of $0.70 - $1.13/minute
FIGURE 2. VOICE-EQUIVALENT PRICE POINTS
VEP
Throughput 2 MB 8 MB
20 kb/sec $0.75 $0.47
30 kb/sec $1.13 $0.70
40 kb/sec $1.50 $0.94
Source: SSB Estimates.
The sensitivity analysis above shows that Sprint has flexibility to increase
the size of the data buckets, especially if the loaded 3G network offers
faster average throughput speeds. As the speed of the network improves,
Sprint is able to achieve better voice equivalent pricing per minute. Data
margins will be sensitive to the cost for content and subscriber acquisition
and education.
Sprint is clearly trying to hold the line on its national voice pricing,
which is constructive for the industry and the company's subscriber
economics. However, its national competitors have not broadly shared
Sprint's strategy. Thus, pricing is a double-edged sword for PCS as the
company is trying to improve subscriber economics at low access plans, but
may limit its marketshare in the process. We do appreciate Sprint's effort
to differentiate on its service offering, rather than on price, and view it
as a constructive signal that Sprint is focused on its subscriber
profitability. On the data pricing front, we believe Sprint's data pricing,
like its competitors, runs the risk of revenue cannibalization for customers
that use too much or too little data. We still believe material data revenue
is, at least, 12 months away given the pricing plans and level of customer
education required. We highlight the pricing of its competitors' 2.5G data
services below."
"* Handset Selection -- We are enthusiastic for the launch of Sprint's new line-
up of handsets that should begin with at least two color-screen phones at or
below $200 and a PC-card for laptops/PDAs. We expect Sprint's phones to
include the color Samsung N400 which should retail for $199.99 and likely a
color-screen Sanyo 4900 for $179.99. These phones should be 1X voice and
data capable. Sprint should also offer the Samsung A500 for around $279.99.
We also expect LG to launch a color-screen flip phone at or near the launch
date, but we could not ascertain the SRP (suggested retail price) from our
channel checks. We expect Sprint to deploy several PC-card modems that will
range in features and price. We expect PC-card modems to range from $249.99
- $399.99 at retail. The company should also shortly launch the Audiovox
Thera, an integrated phone/PDA using Pocket PC, as well as the color
Handspring Treo."
Uh... not really. What AT&T rolled out was GPRS, which is 2.5 G, not 3G.
And before the flames arrive about what is 2G and what is 3G, that my granpa heard this columnist say it wasn't really 3G, and all that junk, there is an Industry Partnership that determines what consitutes 3G, and they determined a while back that 1XRTT (What Sprint is deploying) IS 3G.
Watch the Teaser Trailer for "The Lightning Thief" Her
Ricochet is about 40-100Kb/s, so it's comparable to 3G. And it's flat-rate, at $44.95/month.
I had Ricochet service five years ago, and it was quite good. It was a viable alternative to dial-up at the time.