The move to 4G wireless networks portends a whole new set of devices and services for consumers and a whole new set of business models for carriers and device makers, a Sprint official told me during a Sprint developers’ conference that concluded today.
“[The 4G network] is a significant leap forward in terms of the speeds and the kinds of tonnage that it can take in comparison to 3G,” said Steve Elfman, president of network operations, during an interview at the 2009 Open Developer Conference in Santa Clara, Calif. “It will enable a whole new set of gadgets.”
People use feature phones and smartphones on 2G and 3G networks now to place phone calls but also to transmit data to play games, download video, send text messages, pictures and e-mails. On 4G networks, the universe of applications can expand, Elfman said.
Elfman pointed to my digital camera sitting on the table between us during the interview and said, in the near future, I could send still pictures or videos from such a camera on a 4G network to the Internet or to my home or office computer. Other devices not yet invented could send or receive data over WIMAX networks -- WiFi for a wide section of a city, not just a few dozen feet from a hot spot. E-book readers such as the Amazon Kindle or Sony Reader are just the most recent examples of wireless devices that aren’t smartphones but depend on a high speed wireless network to run.
Sending photos from a networked camera or receiving digital books on a Kindle also represents what may be the future of the device business model, Elfman continued. It could mean the end of the carrier-subsidized device pricing.
“You’re used to paying full price for that,” he said, again pointing to my camera. Likewise, consumers pay full price for a Kindle or Sony Reader and pay per download for books or periodicals they receive on those devices.
"If you’re paying full price for the device there’s a lot of flexibility [for the carrier] in how you charge for the service,” he explained. The new device can be bought by consumer at full price and they can “pay by the drink” for the service.
Not to worry, he assured me, the subsidized device model is likely to remain for smartphones: “We’ve trained the public to expect that.” However, he noted that with prepaid phones the device subsidy is generally lower than it is for people subscribing to postpaid plans.
The developer conference at the Santa Clara Convention Center was a showcase for what is possible with 4G. Sprint parked a new Ford F-150 pickup at its exhibit on the show floor to demonstrate a number of wireless services from the truck maker, including Sprint-provided broadband Internet access.
Creative Labs, of Colorado Springs, Colo., demonstrated a portable video conference unit the size of a book that opens up and transmits voice and video to other participants in the conference wirelessly. I told Michael Baker, director of sales, that, “This looks like something I’d see on ‘24’ or ‘Mission Impossible,’” and he replied, “I certainly hope so.” A good product placement goes a long way.
“The 3G is good, but 4G is great,” Baker continued. The portable video conference device already provides good quality video on 3G networks but, as with any cellular service, the connection can drop off. With 4G, he said, the connection will be more stable.
Clearwire is building the 4G network Sprint will use in North America. Already, 4G service is available in Atlanta, Las Vegas, Portland, Ore. and other cities, said Clearwire spokeswoman Jennifer Morgan. The plan is to have 4G service in 80 U.S. cities covering 120 million people by the end of 2010.
The opening day of the conference, Monday, Oct. 26, Sprint announced the availability of 4G in Philadelphia, where Sprint customers can access mobile broadband anywhere in the city for a $10 a month premium over the price of their 3G data plan.
Comments