4G

I can not thank one of my fellow classmates for doing an in-depth report on 3G and how it compared to 2G technologies. This quick lesson helped me to understand what all of the buzz was about Sprint's 4G network.

The 4G network promises to deliver speeds of 100 Mbps or higher on mobile-based devices. (Reference) These types of transmission speeds provide the capability to steam high resolution video to their wireless devices and participate in real-time video conferencing. (Reference)

Since developing markets typical lack mature land based communication infrastructure and coupled with the difficult terrain, wireless communication capabilities the ever speed increasing wireless networks (e.g. 4G) also provide greater opportunities and hope to greatly enhance communications in these areas. It was particularly interesting to see Africa and the Middle East highlighted in the above article. Perhaps these are markets that are ripe for financial investment and future financial gains.


Unfortunately, there are still some roadblocks for the industry to overcome before 4G becomes ubiquitous. One challenge is the extreme cost associated with upgrading to and/or rolling out a 4G network. Sprint along has reported spending $3 billion to develop its 4G network. Another challenge is that there is not a set 4G standard. WiMAX (Worldwide Inter-operability for Microwave Access) and LTE (Long Term Evolution) are two of the possible 4G standards. Sprint has elected to invest in WiMAX where as AT&T and Verizon are going down the LTE path. These two competing approaches remind me of the Beta Max vs VHS and BlueRay vs HD-DVD standards battles.

While Sprint clearly has the first-to-market advantage, it is too early in the 4G lifecycle to know which carrier or carriers will prevail with their 4G investment strategies. As this eWeek article points out, while Sprint has the first mover advantage, their initial projections of obtain 100 million users by the end of 2008 did not come into fruition. While Sprint continues to slowly expand its WiMAX 4G offerings I am curious to see how Verizon's planned entrance into the 4G space in 2010 will help shape the 4G environment.