Verizon beats Sprint PCS to 1XRTT

Verizon Wireless has launched 1XRTT commercially in 10 markets, making it the first carrier to introduce third-generation networks in the U.S. With Sprint PCS rolling out 3G nationwide this summer, CDMA carriers could gain the upper hand over their GSM competition.

Some industry experts believe 1X operators will have the advantage because in the short term Cingular Wireless and AT&T Wireless are focused on the challenging transition from TDMA to GSM/GPRS.

In the long run, however, the GSM operators will be able to leverage the economies of scale that the GSM market has relative to CDMA, said Phil Marshall, senior analyst at The Yankee Group.

1XRTT is expected to reach a peak speed of 144 kbps compared to 115 kbps for GPRS. However, both standards are expected to offer consumers an average of between 40 and 60 kbps, making the discrepancy in data rates less of a differentiator than some have thought.

Marshall actually believes speed will become insignificant over time.

“I'm not sure speed is the most important metric on which to measure success,” he said. “Being able to create applications to meet specific market needs will be more important.”

Verizon may have gained first-mover advantage with its U.S. launch of 1XRTT, but some industry experts expect Sprint PCS to be a formidable competitor, especially since Verizon is not rolling out 3G with an arsenal of applications or handsets.

In fact the carrier only has one handset available — the Kyocera 2235 — as well as the Sierra Wireless AirCard 555.

In addition to its current 10 markets — Norfolk, Va.; Washington, D.C.; Baltimore; Philadelphia; New York; Boston; Portland, Maine; the Silicon Valley; the San Francisco Bay area and Salt Lake City — Verizon will roll out additional markets beginning in March, according to a company spokesman.

Verizon also has struck a strategic relationship with Accenture. Together, the companies plan to market and sell mobile enterprise applications offered by the Accenture Mobile Service Bureau. Through the alliance, Verizon Wireless and Accenture can offer enterprise customers access to a wide variety of integrated mobile solutions deployed via Verizon Wireless' Express Network, as well as its existing digital network.