Sprint (S) has contracted with Samsung to build out its WiMax network in New York. It is part of the $5 billion investment that the cellular carrier plans to make in the tech between now and 2010.
According to Reuters "Samsung had previously been awarded the Washington, DC, Baltimore, Philadelphia, Providence, R.I. and Boston markets." The head of Samsung’s telecom business said he expects the WiMax business to be profitable in three to five years.
Sprint better hope so. It is going against the tradition current by using WiMax to build out its wireless broadband network, and, lagging behind AT&T (T) Wireless and Verizon Wireless, it will need something extra to catch up.
Sprint may also be operating three networks two years from now: the old NexTel network, Sprint’s current network, and the WiMax deployment.
That is too many balls to have in the air at one time, but Sprint does not have a choice.
Douglas A. McIntyre