Motorola signed a multi-million dollar deal with Sprint PCS Tuesday to
provide third-generation wireless equipment.
Sprint officials declined to comment on the financial terms of the
contract, which will give Sprint users access to equipment that can
download information on the Internet at rates of 144kbps. It will mark
Sprint’s network upgrade to take advantage of the promise of the
third-generation mobile wireless Internet.
Tony Krueck, Sprint PCS vice president of engineering and network design,
said the contract confirms his company’s dedication to a global Code
Division Multiple Access standard.
“This contract represents a major step in furthering our commitment to
Interoperability Specifications,” Krueck said. By furthering IOS as a
global CDMA standard, operators will gain the freedom to pick the best
combinations of RF and switching platforms for their networks. These
benefits will enable greater freedom of choice for wireless carriers.”
The Sprint PCS contract marks the second contract in the U.S. for 1x
high-speed data services by vendor Motorola. Last month, the company
penned a similar deal with carrier ALLTELL.
Third generation services hold much promise for the future of broadband
communications, promising mobile data and voice communications using
broadband spectrum from anywhere around the world.
The U.S. has been slow to adopt 3G standards, compared to its counterparts
in Europe and Asia. Unlike those countries, American wireless users are
charged when receiving calls from another person, prompting many to turn
off the phone when not in use.
Also, a dearth in available spectrum prevents the widespread use of
broadband wireless usage. Earlier this year, President Bill Clinton tried
to get the Department of Defense to free up some of the spectrums it holds,
but it remains unclear whether that will happen soon.
This is in marked contrast to Europe, which has had two well-publicized
spectrum auctions this year. Earlier, the German government raised $51
billion for licensing rights given to telecommunications companies, while
the United Kingdom raked in $37 billion in its auction.
Telcos around the world are eager to pay the whopping price for the
expected future returns in the 3G market. Cahners In-Stat, a research
firm, estimates that the total 3G market will exceed $200 billion over the
next three years.
