Sprint to Invest $5 Billion (With a B) in XOHM WiMax
August 16, 2007
In its announcement of its unfortunately-named XOHM WiMax service today, sprint mentioned that it's planning to spend approximately $5 billion to roll out the network – $2.5 billion by year-end 2008, and another $2.5 billion by year-end 2010.
In return, the company says it expects to generate more than $2 billion a year in revenue starting in 2010.
"The cellular provider did not commit to service plans, but reportedly intends to offer between 2 Mbps and 4 Mbps download speeds for approximately $50 per month," according to Electronista.
More here from Reuters … more here from the Wall Street Journal … more here from Unstrung … more here from Wireless Week … more here from BetaNews … more here from InfoWorld … and the press release is here.
Jim said:
Aug 20, 07 at 8:47 amThere is a reason Sprint is investing in WiMAX vs their EVDO Cell network. They see the future for 4G is not Cell which still struggles to deliver anything over 768Kbps consistantly on their Narrowband networks.
Sprint however will need to move off the 2.5Ghz spectrum and find someway to get access to the 700Mhz spectrum (hello Google)if they are to compete with the Verizon Wireless juggernought who will definetely win on Nationwide License in 700Mhz. VW must win the 700Mhz because they see the same issue that Sprint did with their EV-DO NArrowband network. They need the 700Mhz in order to stay competitive.
Jacomo
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