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]