Sprint “Opens Up” XOHM

XOHM

There have been significant discussions over the past few months around offering open wireless access. It all emanated from the upcoming FCC auction of the 700 MHZ spectrum. You can read the details from yesterday’s post.

However the brouhaha has been over offering the following on the new spectrum:

  • Open Devices
    • Meaning users can buy devices from anywhere as far as they support the frequency. The wireless operator cannot lock the subscribers into any specific device
  • Open Applications
    • Meaning that any application/service provider can deploy software which can run on these devices

As one can imagine that this has become a burning issue among the big boys of wireless. In middle of all this Sprint has been quietly working on deploying their WiMax service. Just last week they launched in Chicago (at WiMax World) at a snazzy press event staged on a cruise. Among various announcements they provided the first glimpse into the pricing structure of their service, which is scheduled to launch in 2008.

This was a key announcement as Sprint has take a significant turn here and is going against the grain. They have chosen to completely adopt the open service business model. To Sprint this service is a ubiquitous wireless pipe. Users will sign up for wireless broadband for a day, a month or a year without a contract tied to a specific device. Payment can be made via a credit card wirelessly.

They are moving away from the binding contract model and transitioning to a subscription model. User’s will have no restrictions on how to use the service and what device to use it on as far it supports WiMax standards. This is very similar to the experience you get while accessing WiFi at the airport, where you are required to pay for usage only.

Frankly this is unheard of in the wireless industry. Traditionally carriers have created structures to lock-in subscribers. Most existing pricing models require two year contract and handset choice is limited to what the carrier offers. Don’t even get me started on the closed applications model. Sprint has clearly leap-frogged everyone in this area. This thought process is completely 180 degrees to their existing wireless offering, which is pretty much a walled garden.

Google, Verizon and AT&T fighting over a spectrum, which will probably be accessible few years from now. However Sprint has taken the lead and planning to offer this structure early next year. All this makes Sprint look pretty smart with this approach. On the other hand they have also made key partnerships with other industry giants such as Samsung, Motorola and Intel.

Among these I believe that the Intel partnership is the most important. As Sprint has adopted a wireless ISP model, it no longer controls the devices and hence their distribution. Yes they will certainly sell data cards. However success will come from wide adoption of this technology. Intel is very much committed to this space and has a leadership position. They are planning to add WiMax capability to their Centrino line, code-named “Echo Peak”, which will be a dual mode WiFi/WiMax chipset, allowing users to easily access broadband from anywhere.

I remain bullish on XOHM and think that it will be the saving grace of the company. However time will only tell what happens and how successful they are. Here is a neat video from the XOHM’s site for your viewing pleasure.

October 5th, 2007 in Mobile

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