Sprint Struggling to Gain 4G WiMax Subscribers

Sprint is apparently having difficulty gaining 4G or WiMax subscribers according to Aurigia USA analyst Chandan Sarkar. After launching WiMax this past year and rolling it to several cities nationwide, Sprint still isn’t seeing the explosion in 4G users that it was hoping for. Part of that reason is probably because it’s still very much missing from many major cities in the U.S., like Los Angeles, San Francisco and New York City. While it’s live in other big cities like Chicago, Las Vegas and Dallas, picking up on those other three could be huge.

According to Barrons, Sarkar says:

“As the first carrier to launch 4G service, we had expected strong subscriber growth at Sprint,” he writes. “However, in addition to the well publicized parts shortages on their EVO handset, we believe that the successful deployment of HSPA [high-speed packet access, a technology used to speed up 3G service that uses the WCDMA standard] by competitors (especially AT&T) appears to have limited Sprint’s 4G subscriber growth prospects.”

Sarkar is right in that the hardware shortages aren’t helping, and that the problem is compounded by the fact that AT&T and T-Mobile have both boosted their respective 3G networks. Some AT&T users have been seeing 3G download speeds of up to 4-5Mbps, which is just about as fast as what some WiMax users are seeing on average. T-Mobile HSPA+ has shown similar speeds, and its first HSPA+ capable handset is coming soon in the form of the very attractive T-Mobile G2.

Additionally, Verizon Wireless is on schedule, if not a little ahead of schedule, in terms of launching its own 4G network using LTE technology.

Sprint may be forced to do something a little more drastic if it expects to grow its WiMax user base. The $10 premium for the EVO 4G was once a point of controversy, and while its most basic plan is still cheaper than most other carriers, the comparison within its own line-up makes some customers question that cost. The upcoming Samsung Epic 4G has received rave reviews, but is one of the more expensive handsets on the market at $250 with a two-year contract. With phones like the iPhone 4, Droid X and Sprint’s own HTC Evo 4G going for just $199, many users might find it hard justifying the additional $50 cost and the $10 extra per month for data service.

[Via: Barron's]

About The Author

Marc Flores

Marc has been a mobile fanatic for the better part of a decade and has had more devices pass through his hands than he would care to count. Originally from Los Angeles and briefly in San Francisco, Marc now lives in Brooklyn where, unlike Will Park, he longs for simpler times and simpler technology. All the while, he writes about gadgets and wireless technology as he tinkers, hacks and ultimately breaks most of his gadgets in the process. Marc has written about the mobile industry for Boy Genius Report, MobileCrunch, Laptop Magazine and has had his work appear in the Wall Street Journal, Gizmodo, CrunchGear and more.

Matthew

im in boston, and have sprint, NO 4G HERE , supposably its coming in september, i also have mobile broadband with sprint when i recently purchased my 3G/4G overdrive modem the plan didnt go up in price there is no $10 extra fee a month on the mobile plan, but its funny that its 5GB a month on 3G and unlimited on the 4G
anonymous

Clear, the company that provides sprint with the 4g network is due to launch 4g services here September 1st 2010 sprint will most likely be rolling it out on or around the same day. I have seen the test devices in the Boston market and can say the speed is great. So standby And you will get your 4g service in the near future.
MJM

Sprint 4G is available in 45 markets covering almost 51 million people today. There are 35 additional markets being deployed between now and the end of the year. This will take Sprint 4G availability to 80 markets covering 120 million people by the end of 2010 – exactly as announced. These markets include NYC, LA, SF – also as previously announced. Verizon, meanwhile, is not ahead of schedule. They are still attemptng to get 20 to 30 markets up by the end of the year, and haven’t launched a single commercial market yet.

As for WiMAX versus LTE – the techical difference is exceptionally minor. The 4G technology shouldn’t matter much, except to how well the carrier is able to leverage its RF resources. What should matter for users is where can I get 4G, and on what devices. In these areas Sprint is well ahead of its competitors, and will be for some time to come.

Subscriber growth for Sprint is not limited to the HTC EVO. Sprint has several 3G/4G connection cards, the Sierra 3G/4G Ovrdrive, and some 4G only desk top modems as well. No markets and no devices from competitors like Verizon.

Lastly – 3G remains a 5GB plan for all major national carriers, not just Sprint. For good or bad, this is because the RF channel sizes used in 3G technologies are very narrow compared to 4G channel sizes, and so have less capacity to handle simultaneous users at acceptable speeds and latency performance.
Anonymous Me

This guy – Sarkar – has no clue what he is talking about. AT&T’s HSPA upgrades are slowing WiMAX down? Thats a joke. A simple Google search for AT&T’s network troubles should set the record straight. AT&T has a crappy network and EVERYONE knows it ! I’m shocked that a telecom analyst cant figure this out. If anything is slowing Sprint down, it is the slow 4G network rollout. For example – Boston should have had 4G a year ago!
SprintUSer

I think Sprint has done its customers an injustice charging this extra 10 fee for “4g” service that is not in many parts of the country such as NJ where I am from. You expect me to pay this extra fee for a service that is not provided to me because I want a particular phone. And then this fee is for “premium” data usage yet I have an unlimited data plan. This is misleading if I already have an unlimited data package yet you tell me that I have to pay to use extra data. What sense does that make?

I am not surprised that Sprint is struggling to gain 4g subscribers especially with how difficult its been for sprint customers and those who want to become Sprint customers to find the EVO. And then this new fee. Im glad that they are basking in their new found surge of numbers and/or interest theyve recieved but theyve got to do better
waiting on 4g

I would suscribe to Sprint 4g today if it was available in my area of Florida (Palatka, FL). I just have no idea when it will be available and Sprint has done a poor job of updating their progress in my opinion. Jacksonville, FL went live this month, but the service falls about 20 miles short of where I live.

I’ve been waiting for this service ever since I heard about it and that has been almost two years now.
SoKal26

First of all, the $10 premium data charge is NOT misleading, in any way, shape or form. It’s spelled out in black and white and frankly, If you don’t want to pay it…don’t buy the phone. So many people complain about the fee, t to no avail. Its not going anywhere, and quite honestly….it shouldn’t. Sprint is doing a fantastic job in rolling out their 4G network..(which nobody else has done so far). I live in NJ as well my friend, but here’s my opinion on the matter. I live in Trenton, 5 minutes away from PA…so i will get sporatic 4G connections, even though the Philadelphia market is not as close. With those sporatic connections, my speedtest.net app records average speeds of 4-6 mbps…..and that’s NOT at full bars. With that being said…I knew my Evo would come with a $10 premium…but If it helps to build up our 4G network…i’m all for it. I look at it as an investment into the company, a company I believe has a strong foundation and a promising future in mobile communications. From what i’ve seen so far in person…(even without living in a “4G zone”), 4G is fast…very fast….and I can’t wait until we see nationwide coverage. No i’m not a Sprint employee, just a new subscriber, very satisfied user…..and an all around happy camper.
FONE INSIDER

agreed with anonymous me and sokal26. people are complaining about the $10 fee and just complaining is not going to do nothing. honestly it really isnt. there is a better solution than you crying over a fee. DONT GET THE PHONE and get at&t’s iphone 4 that is MUCH MORE EXPENSIVE than an EVO a month without 4G capabilities and bad ANTENNA reception. even the droid inkredible is more expensive than an evo a month. WiMAX 2 will be rolling out as well and when it does guess what? it will be faster than verizon’s and at&t’s lte network. so i’d take sokal26′s advice and invest your money wisely and go with sprint. they have gotten a lot better over the last 2 years and their service is just as great as verizon’s. and way better than at&t and tmobile’s. like sokal26 im no sprint employee but i have been with sprint for over a year now and things have improved so much in just one year. imagine when lte comes out with verizon this year or next year whats their fee going to be like? $20 – $30 more? sounds about right doesnt it? seeing that they are expensive already and most likely with a CAP on their 4g network since their is less spectrum on their end.
NoelleC

This should be noted that the $10 fee only applies to handsets not data cards. Personally I want Sprint and Clear to go TD-LTE, it’ll be faster than VZW LTE because Sprint owns so much spectrum in the 2.5Ghz band that its LTE will operate in 20Mhz chunks versus the 10Mhz on VZW. VZW LTE is projected to do 6 to 12Mbps due to spectrum. If Sprint goes to TD-LTE it’s capable of 85 Mbps like the LTE in Sweden.