Sprint Expands 4G Footprint

Sprint Nextel (S) has further expanded its 4G wireless broadband network footprint as the third largest US carrier has officially launched commercial services in the Pennsylvanian cities of Harrisburg, Lancaster, Reading and York. Sprint’s 4G services now cover 32 markets nationwide.

Subscribers in these new markets will now enjoy lightning fast mobile broadband experience, which is 10 times faster than the existing 3G deployments. Moreover, the users can seamlessly connect upto five Wi-Fi (wireless broadband) devices including Apple’s (AAPL) iPad simultaneously to Sprint’s 4G network using the carrier’s “Overdrive” dual-mode (3G/4G capable) wireless router.

Sprint offers its 4G service under the "Sprint 4G" brand piggybacking the WiMax (a wireless broadband technology) network operated by Clearwire (CLWR) in which it holds a 51% stake. The downlink speeds enabled by the 4G WiMax network average 3-6 megabits per second (Mbps) with peak speed exceeding 10 Mbps.

Sprint leapfrogged over its larger US peers by becoming the first carrier to deploy 4G services in the US with the commercial launch in Baltimore in October 2008. The company’s 4G services now cover 40 million people in the US and are expected to address 120 million by the end of 2010.

Since the 4G network launch, Sprint has introduced an array of 4G devices such as dual-mode modems, mobile hotspots and PC cards. The carrier is gearing up to launch (likely in June 2010) the world’s first 4G smartphone “HTC EVO 4G”, which will foster the effective use of 4G bandwidth for data-intensive applications. The feature-rich device is expected to help Sprint lure more users to its 4G network.

Sprint’s 4G initiative represents a response to the emerging 4G wireless broadband standard known as Long-Term Evolution (LTE), which has demonstrated higher network speeds than WiMax in technical trials. The company’s larger peers Verizon (VZ) and AT&T (T) are expected to deploy their 4G LTE networks in 2010 and 2011, respectively.

Nevertheless, expansion of 4G services is vital for Sprint’s survival in the US wireless market given its continued market share losses to larger rivals. Sprint will continue the aggressive network deployments through 2010 with 4G service launches in key US markets including Boston, Los Angeles, New York, San Francisco, Miami, Cincinnati, Kansas City and Washington D.C.