MWC: ALU, Ericsson licensing Samsung WiMax tech for Sprint network upgrade

BARCELONA – The vendors executing Sprint’s (NYSE:S) Network Vision modernization plan have formed a much cozier relationship with one another than arch competitors usually are inclined to do. In order to win Sprint’s network enhancement contract, Alcatel-Lucent (NYSE:ALU) and Ericsson (NASDAQ:ERIC) needed to support a future WiMax component in Sprint’s multi-mode, multi-standard architecture, but neither vendor has a mobile WiMax product. Both have turned to the third vendor in Sprint’s supplier trio, Samsung, licensing the Korean vendor’s WiMax base station technology.

Ericsson and Alcatel-Lucent would load Samsung’s WiMax radio technology into their software defined radio (SDR) base stations, so no major equipment overhaul would be necessary. While the process isn’t simple, it’s easier than it sounds, said Tom Jasny, vice president of wireless broadband networks for Samsung.

“Some elements of the network will be identical,” Jasny said. “Some elements will be unique to the supplier, but they won’t be unique to the standards.”
Scott Willis, the Ericsson vice president who heads up the Sprint deal, said the licensing deal with Samsung was a one-off arrangement and wouldn’t be extended to any other agreement or technology. “We entered into this agreement specifically to support this deal,” he said.

Ericsson actually has been one of WiMax’s most vocal critics, particularly when the technology was gaining momentum three years ago. Unlike other major vendors, Ericsson never developed a WiMax product line. Instead it threw itself whole-heartedly behind the competing long-term evolution (LTE) standard, which proved to be a smart choice as LTE has proven to be the dominant mobile broadband technology. Alcatel-Lucent developed a WiMax portfolio and still supports multiple fixed WiMax customers. However, it dropped its mobile WiMax product line several years ago. Of all of the major infrastructure vendors only Samsung, Motorola and Huawei stuck with WiMax.

The licensing agreement potentially gives Samsung an opportunity to make a much bigger impact on Sprint’s Network Vision project, which seeks to integrate all of Sprint’s radio technologies and spectrum into a single small-footprint base station platform as well as give it the flexibility to pursue either WiMax or LTE in the future. Samsung is not only replacing much of Motorola’s CDMA footprint, its WiMax technology could be deployed network-wide.

That might be a moot point though, as Sprint is set make a decision on WiMax or LTE soon, and all indications seem to point to LTE. During a round table discussion with Sprint’s vendors at Mobile World Congress, Sprint senior vice president of networks Bob Azzi said Sprint likely will make its final pick in the next six months, though he didn’t say whether Sprint was leaning one way or another. Sprint already has a WiMax network covering 120 million pops through its relationship with Clearwire (NASDAQ:CLWR). It’s unclear, however, why Sprint would launch WiMax over its own network unless it took Clearwire over or arranged some kind of infrastructure sharing deal.
In order for Sprint to deploy LTE it would have to clear spectrum, most likely in the 800 MHz band where its iDEN network is gradually being turned off. Sprint is moving Nextel’s push-to-talk capabilities onto its CDMA EV-DO network using the next generation of Qualcomm’ (NASDAQ:QCOM) QChat technology.

Azzi said the upgrade will bring CDMA 1X Advanced capabilities to the network, allowing it shove far more phone conversations into the network, clearing capacity for mobile broadband. Sprint is also re-mapping its vendor footprint to give Alcatel-Lucent , Ericsson and Samsung roughly equal sections of the network, Azzi said. Sprint has several markets with multiple vendor equipment, creating undesirable hard hand-off between towers. As result all of the vendors will be expected to replace at least some of their competitor’s equipment. Samsung as a new entrant will start from scratch, tearing down Motorola’s old CDMA kit only after its new equipment is up and running. Meanwhile Alcatel-Lucent and Ericsson (by virtue of its Nortel networks acquisition) will primarily be replacing and upgrading their legacy gear.