4G World: MetroPCS to transfer cord-cutter strategy to 4G

MetroPCS (NYSE:PCS) has apparently been so successful in its pursuit of ‘cord-cutters’ for its wireless voice service, it plans to take the same approach to 4G data. When it launches it long-term evolution (LTE) network in late 2010, it plans to go after the wireline replacement market offering an Internet and broadband experience comparable to what customers receive from the telephone companies and cable operators.

AT 4G World in Chicago today, MetroPCS announced Ericsson (NASDAQ:ERIC) would build its LTE network and Samsung would provide its first 4G handsets. The operator also named its timeline for launch, which is just aggressive as the schedule as fellow CDMA provider and LTE standard bearer Verizon Wireless (NYSE:VZ, NYSE:VOD).

“As the Internet goes ‘mobile,’ we are excited to be at the forefront of this wireless evolution with the building out of our 4G broadband data services,” MetroPCS president, CEO and chairman Robert Linquist said in a statement. “We anticipate to begin offering our 4G LTE services and a dual-mode LTE/CDMA smartphone in our major metropolitan markets in late 2010. When launched, our customers will benefit from our next generation, leading-edge network technology which will enable true high-speed Internet access in the palm of their hand. With the announcement of our LTE launch vendors, MetroPCS will move directly to 4G.”

Metro didn’t reveal many specifics on the 4G devices are plans it will launch next year, saying only that 4G will allow it to extend the same non-contract, flat-rate, unlimited-calling business model it uses today for voice to the data world, though whether that will take the form of an no-contract unlimited data plan for a flat fee remains to be seen. Metro, however, did say it plans to make its service as attractive to potential broadband Internet cord cutters as its voice plans have been in the wireline replacement space.

Though a small contract compared to Verizon Wireless, NTT DoCoMo or AT&T’s eventual deployment, the deal adds yet another feather in Ericsson’s cap as it tries to establish an early lead in the LTE infrastructure market as well as penetrate more deeply into North America. As CDMA providers, both Verizon and MetroPCS were both off limits to Ericsson just a few years ago, having exited the CDMA business years ago, only to return to it this summer with the purchase of bankrupt Nortel Networks’ CDMA group.

The deal ostensibly gave Ericsson visibility into one of the world’s most locked down marketplaces, but even without a CDMA product Ericsson has seemed to have had little trouble convincing CDMA operators to buy its next-generation infrastructure and services. In addition to its LTE wins with CDMA operators, Ericsson won a major network operations contract with Sprint (NYSE:S), which effectively gives Ericsson control over the day-to-day management of its CDMA and iDEN network.