Sprint hails WiMAX arrival by announcing LTE downfall

After CTIA this year it became clear that LTE 4G technologies would be in the future for both AT&T and Verizon, but we would not see a roll-out until 2011/2012.  Meanwhile Sprint’s XOHM (WiMAX network) is set to launch this year after some delays, but with a WiMAX Nokia 810 Internet Tablet hitting the market their first flagship device is set.  The big question here is whether a three to four year head-start on launching 4G caliber next-gen network will solidify WiMAX’s position in the market for Sprint.

Clearly if we based our opinion on history, the release of a technology before its competitors provides a huge advantage for market share and whether that technology becomes adopted by the general public.  Image that Blu-Ray was given 3 years in the market before HD DVD launched: I don’t think HD DVD would have lasted a third of the time it did before collapsing as a format.  The other factor to consider here is the global trend in mobile technology which is set by the actions of the GSM world and mainly Europe.  Sprint is a CDMA network while 80% of the global market are GSM-based carriers that will be launching 4G LTE networks.  From a global perspective, LTE will be available in more places and Sprint will remain a CDMA carrier stuck in a GSM marketplace.

Verizon Wireless (a partnership of Verizon Communications and Vodafone Group) has CDMA roots, but it’s decision to move towards the GSM friendly LTE 4G technology over WiMAX puts it into the position for global success.  I am not saying that Sprint’s WiMAX network will not be successful, I am simply re-enforcing the fact that WiMAX will limit Sprint’s chances for global success and with falling stock prices and company hiccups they need to appeal to anyone and everyone who will listen.  On the other hand, if Sprint is able to translate an early network launch into millions of new subscribers and a nationally accepted technology they will be in the position for their greatest chance at a company rebound.