Understanding the lexicon attached to new cellular technologies has proven just as tough as staying strapped into the wild rollercoaster of expectations they drive.
For at least the past five years, the promise delivered by many Internet providers has been a world seamlessly connected from every steakhouse, outhouse and doghouse.
In the past year and in the year ahead, cellular providers are fulfilling some of that promise in Arkansas by delivering new 3G technologies that allow Internet users access on wireless devices with the same speed and convenience they are used to with wired broadband networks at home and work.
And perhaps best of all, the access will be completely mobile, unlike Wi-Fi hot spots, which have only limited range.
3G, short for third generation, is not defined by a single, standardized network but rather a set of requirements. It is preceded by 1G’s analog cellular technology and 2G’s digital cellular technology, which integrated voice and data communications. 3G, however, delivers always-on data access, greater voice capacity and much faster data transfer rates, which enable wireless applications like streaming media.
3G technology has been slow to catch on in the United States — Europe and Japan, for example, were much quicker to adopt the technology — but is fast gaining popularity.
Research firm In-Stat predicted last month that the worldwide 3G subscriber base will grow from 29.1 million in 2004 to 540 million in 2010.
“For the most part, carriers will take a breather over these next few years and refine the networks they already have, while developing new features to make use of those networks,” In-Stat analyst Allen Nogee said in the report. “Carriers have spent billions of dollars to deploy 3G, but future strategy will be geared toward how to best utilize these networks.”
Arkansas, however, is a bit behind the curve. Only Little Rock’s Alltel Corp. and Sprint Nextel Corp. of Reston, Va., sport their own 3G networks in the state, using Evolution Data Optimized, or EVDO, technology.
And the country’s two largest wireless providers, Cingular Wireless of Atlanta and Verizon Wireless of Bedminster, N.J., have yet to roll out their services in Arkansas, though both have plans to do so soon.
As the gaps fill in, wireless users across the state will further cut the tethers to Internet networks at home and work and even challenge traditional broadband service offered by cable and landline operators.
Arkansas Goes EVDO
There’s some debate as to which company was the first to have a 3G network in Arkansas. Both Sprint and Alltel claim the distinction.
Sprint launched it EVDO service, Sprint Vision Service, last October — but only at the Little Rock National Airport. A month later Alltel began offering its Axcess Broadband service, also using EVDO technology, throughout central Arkansas, as far north as Conway and Jacksonville and as far south as Benton.
Later, Sprint extended its service throughout central Arkansas and at airports in Blytheville, Conway, Jonesboro, North Little Rock, Searcy and West Memphis.
Sprint also has plans to add EVDO to Fayetteville, Fort Smith, Hot Springs, Pine Bluff and along the state’s major highways by 2008, according to Sprint spokeswoman Kristin Wallace.
Both Axcess Broadband and Sprint Vision Service allow users to browse the Internet with average speeds of 400 Kbps to 700 Kbps with bursts of more than 2 Mbps for about $60 a month, not including a required wireless card.
Little Rock was one of only a dozen EVDO networks Alltel rolled out last year; Sprint, meanwhile, has been a veritable Johnny Appleseed of EVDO since late 2005, planting mobile broadband service in 466 major U.S. airports and in more than 220 markets covering more than 152 million.
Verizon, which was the first carrier to build a national wireless broadband network, has also been very aggressive in its EVDO rollout. The company first launched its 3G service, called BroadbandAccess, in October 2003 and an-nounced a national rollout in January 2004.
Verizon’s EVDO network now serves 181 major metropolitan areas, covering 148 million people, and 72 major airports. Its download speeds are comparable to Sprint’s and Alltel’s, but it costs a few bucks less per month when coupled with a Verizon voice plan.
Verizon first entered Arkansas last December. The company began by offering service in Little Rock, North Little Rock, Jacksonville, Maumelle, Sherwood and along Interstate 40 to Memphis, though none of those markets has EVDO service yet. Verizon spokesman Jimmy Duvall said, though, that the company would definitely be offering EVDO service in Arkansas this year or next.
Because Verizon, Sprint and Alltel all use same underlying technology, Code Division Multiple Access, or CDMA, they can share their networks through roaming agreements.
Earlier this month Sprint and Alltel announced the first roaming agreement between U.S. carriers to share access to EVDO service. The 10-year deal allows Alltel subscribers access to Sprint’s EVDO service throughout Sprint’s entire network.
When Cingular finally enters the 3G fray in Arkansas, it will be sort of the odd man out among carriers. Instead of offering 3G service over a CDMA network, Cingular will offer 3G service using Universal Mobile Telephone Service, or UMTS, which will operate over its GSM network.
Part of the $62 million Cingular is investing in Arkansas this year will ready its network for 3G service here.
Cingular spokesman Frank Merriman said the carrier would launch 3G service in Arkansas sometime this year but did not offer a more specific timetable. Some sources say, however, that the rollout is ahead of schedule and could be launched as early as this summer.
Bells and Whistles
With faster, more nimble networks, 3G technology allows wireless carriers to offer a wide array of new applications. And carriers are finding big bucks to be made in these new cellular bells and whistles.
Andrew Moreau, vice president of corporate communications for Alltel, said data services have become one of the company’s fastest-growing revenue sources as voice services across the industry have essentially become a competitively priced commodity.
Indeed, last quarter Alltel increased its revenue from data services by 80 percent, or $37.5 million, compared with the same quarter last year.
Among the many Axcess Broadband services Alltel offers are text, picture, video and instant messaging, television from more than 25 channels, radio, games, ringtones, and office management applications that enable customers to view calendars, contacts and e-mails on the road.
Verizon, which has been in the EVDO game longer than any other U.S. carrier, has two EVDO services, BroadbandAccess and V Cast. The former, aimed at business customers, focuses mostly on high-speed Internet access on laptops. V Cast, however, is geared toward online entertainment over the phone or other small wireless devices, from 3-D games and short films to V Cast’s extensive music library of more than 1 million downloadable songs.
Another source of data revenue for Verizon and other carriers is through mobile virtual network operators (MVNOs), which resell wireless services under a different name than the company from whom they lease the frequency spectrum.
In its most recent quarter, Sprint reported 1.3 million new wireless customers, 20 percent of which came from MVNOs and affiliates.
One of those MVNOs offering service in Arkansas is Mobile ESPN, offered by the sports conglomerate ESPN Inc. of Bristol, Conn. Launched nationwide on Super Bowl Sunday in February, Mobile ESPN fixes sports junkies with up-to-the-minute, customizable content, including scores, breaking news, and audio and video programming, all over the phone. ESPN leases airtime from Sprint’s network wholesale.
Another MVNO using EVDO is Amp’d Mobile, which targets youth and young professionals with quick access games, music and entertainment.
Though Amp’d EVDO service, which uses Verizon as its base provider, is not yet available in Arkansas, it could soon be on its way once Verizon builds out its EVDO network in the state. Amp’d would arrive just in time to join a long line of other 3G providers.
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