(S) Sprint Nextel Expands 4G WiMax Footprint

Sprint Nextel (S) has further expanded its fourth-generation (4G) wireless broadband network coverage to ten more U.S. markets. The third largest US carrier has officially launched commercial services in Salem (Oregon), Milledgeville (Georgia) and Texas cities of Amarillo , Killeen-Temple, Corpus Christi , Lubbock , Waco , Wichita Falls , Abilene and Midland-Odessa. This follows Sprint’s 4G service launches in Atlanta, Portland and Las Vegas in August 2009.

Sprint offers its 4G service under the “Sprint 4G” brand and leverages the WiMax (a mobile broadband technology) network operated by Clearwire Corp. (CLWR) in which it holds 51% stake. The 4G WiMax network offers up to 10 times faster network speeds than the existing 3G deployments. The download speeds enabled by the 4G WiMax network averages 3-6 megabits per second (Mbps) with peak speed exceeding 10 Mbps.

Subscribers across the newly launched markets can now enjoy lightning fast mobile broadband experience by paying just $10 per month over their existing 3G wireless data plans. This is enabled by the nation’s first dual-mode (operates on 3G and 4G networks) mobile broadband modem, which was launched by Sprint in December 2008.

Sprint made history by becoming the first U.S. carrier to deploy 4G WiMax mobile broadband services in the U.S with a commercial launch in Baltimore in October 2008. This was followed by subsequent launches in five more cities of Chicago, Dallas, Philadelphia, Seattle and Honolulu.

The company plans to continue the aggressive network deployments through 2010 with 4G service launches in key US markets such as Boston, Houston, New York, San Francisco and Washington, D.C.

Sprint’s 4G WiMax initiative is a response to its major competitors Verizon (VZ) and AT&T (T), who are preparing to deploy their own advanced wireless broadband networks in the 2010-2011 timeframe based on the emerging 4G wireless standard known as Long-Term Evaluation (“LTE”).

The 4G WiMax service is expected to play a critical role for Sprint’s survival in the wireless market as the company continues to lose market share to its larger rivals. Additionally, WiMax is expected facilitate the deployment of broadband in rural areas where the expansion of traditional fiber-based networks may not be feasible.

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