CTIA: Sprint unveils Android WiMax handset

The pact formed by Sprint (NYSE:S), Clearwire (NASDAQ:CLWR) and Google (NASDAQ:GOOG) over a year ago finally bore its first results. As expected, Sprint at CTIA Wireless announced its first dual-mode 3G-4G handset, using the Clearwire WiMax network for broadband data, Sprint’s own CDMA network for voice and Google’s ever-present new operating system, Android.

The HTC-built Evo is the first 4G handset in the U.S. market, giving Sprint the initial advantage in the 4G race as competitors Verizon Wireless (NYSE:VZ, NYSE:VOD) and AT&T (NYSE:T) build their long-term evolution (LTE) networks and look for device suppliers. While Verizon plans to launch its commercial LTE service in the latter half of the year, it will initially offer laptop data cards for its 4G service. LTE handsets aren’t expected until mid-2011, giving Sprint about a year to take advantage of its early 4G lead after the Evo goes on sale this summer.

While Sprint may be first to market it is still constrained by geography. Clearwire has WiMax service in about 27 markets, covering 34 million people. The dual-mode radio in the Evo allows Sprint customers to fall back on its nationwide EV-DO network, but that means that only ordinary 3G speeds are available to customers throughout the majority of the country. Clearwire, however, plans an aggressive expansion this year, reaching a footprint of 120 million pops by year's end. Sprint and Clearwire revealed that Los Angeles, Cleveland, Miami, Pittsburgh, Salt Lake City and St. Louis were all on Clearwire’s 2010 deployment road map, along with earlier announced markets Boston, Denver, Kansas City, Houston, Minneapolis, New York, San Francisco and Washington, D.C.

Sprint is positioning the HTC Evo as a multimedia-intensive device, taking advantage of the WiMax network's 3 Mb/s to 6 Mb/s of average throughput. "Not only is this feature-rich device incredible on our Sprint 3G network, but Sprint 4G speeds will take mobile multimedia, including live video streaming, gaming and picture downloads to a whole new level,” said Sprint CEO Dan Hesse in a statement. In addition to a complement of high-powered cameras, large touch-screen and Android 2.1 operating system, the phone will support the same hotspot capabilities as Sprint’s Overdrive mobile broadband router, allowing up to eight other devices to share the WiMax or 3G connection via Wi-Fi.
Qualcomm’s (NASDAQ:QCOM) Snapdragon processor will power the device’s multimedia function, while small 4G chipset vendor Sequans Communication will supply the WiMax silicon. The deal is significant to Sequans, which has seen rival Beceem Communications far outpace it in the WiMax device market. Almost all of the WiMax laptop modems and routers being sold over the Clear network use Beceem 4G technology. But by landing in the Evo, Sequans is establishing a key foothold in the high-end smartphone and converge device market.

The mobile WiMax market globally is starting to gain steam as Clearwire and operators such as UQ Communications in Japan and Yota in Russia ramp up their networks. Motorola today reported its sales of WiMAX customer premise equipment and laptop dongles have more than doubled in the last six months, increasing to 2 million total units shipped. Beceem reported 2 million WiMax chipset shipments through the first three quarters on 2009 and was on target for another 1 million in shipments in the final quarter of the year.