[Satellite News 09-21-10] MetroPCS has launched the United States’ first 4G LTE-enabled network in Las Vegas with Samsung’s multi-mode, CDMA Craft handset signed on to support the service, MetroPCS announced Sept. 21.
    Analysts hailed the launch of the service as a U.S. mobile industry game-changer. In a statement to Satellite News, Informa Telecoms & Media Principal Analyst Mike Roberts called Metro PCS’ U.S. LTE launch a milestone for both domestic and global markets. “It signals the shift of mobile networks from 3G to 4G and from a focus on voice to data. Metro PCS has also put its name in the mobile history books by becoming the first mobile operator in the world to launch an LTE handset.”
    While acknowledging the significance of the launch, Roberts also noted that the move comes with risks associated with first-generation handsets. “Handsets using new mobile technologies take years to develop and [Samsung’s Craft] is very early. This could lead to problems such as poor battery life and dropped calls or data sessions, which happened with early WCDMA and WiMax handsets. Time will tell if being first to market with an LTE handset will pay off for Metro PCS.”
    MetroPCS’ LTE service enters a competitive market with Clearwire’s WiMax service, which also is available in Las Vegas. The Samsung Craft handset also competes with its own Epic handset and the HTC EVO 4G service from Sprint, both of which operate on the Clearwire WiMax network. “The Samsung Epic and HTC EVO 4G are likely to deliver better user experiences since they are based on a more mature technology and network, but the Samsung Craft and Metro PCS LTE network will improve rapidly. Metro PCS has also launched LTE services at aggressive prices, $55 per month or $60 per month for unlimited talk, text and data, compared to $80 per month or more from Sprint,” Robert said.
   Terry Norman, senior analyst at Anlaysys Mason, noted that WiMax investors have been writing off billions of dollars in Clearwire and its majority-owner Sprint over the past year, which may put WiMax at a competitive disadvantage to LTE. “In the developed markets of Europe and the United States, we see some early signs of a difficult future for WiMax. In developed European markets, operators are almost certainly upgrading their 3G technologies to 4G LTE in order to match the rising demand for data. We expect that [WiMax operators] will compete head-to-head for the same customer base, and LTE will have a clear advantage in this.”
    MetroPCS is also set to face competitors from the satellite realm. In July, Harbinger Capital signed an eight-year, $7 billion contract with Nokia Siemens Networks to build and operate a 4G LTE satellite and mobile broadband network for wireless providers, which will rely on satellites and terrestrial spectrum that Harbinger acquired through its $280 million purchase of SkyTerra in March. The venture, dubbed LightSquared, plans to launch in its first markets by the middle of 2011 and aims to provide coverage to 92 percent of the United States by 2015. The company will raise up to $1.75 billion in debt and equity before service launch. Harbinger Capital Partners and affiliates have invested $2.9 billion in the venture.
    Roberts believes the United States is at the beginning of an LTE era with enormous potential. “The United States will be the largest LTE in the market in the world through 2015 … and will grow rapidly to have 1.5 million subscribers at the end of 2011 and more than 70 million at the end of 2015. As a smaller operator, Metro PCS was smart to launch LTE first in the U.S. because it will have a much bigger impact than if it would have launched in the wake of the larger services coming later this year. ”