Sprint is launching its first fixed wireless service this week, an offering that will let users access the Internet at up to 5M bit/sec.
Broadband Direct lets business users bypass local-loop connectivity and access the Internet at much higher speeds than are possible using a standard dial-up modem.
The service is available in two flavors, Broadband Direct and Broadband Direct Office. Both services access the Internet at 256K bit/sec upstream and up to 2M to 5M bit/sec downstream. But Broadband Direct Office, which costs $90 per month, includes five IP addresses, whereas Broadband Direct, which costs $40 per month, includes only one IP address.
Instead of using Sprint's own Internet services to link Broadband Direct customers to the 'Net, Sprint is using EarthLink's Internet backbone. Sprint recently spun off its Internet business into a separate unit with plans to sell it off to see its merger with MCI WorldCom through. It seems Sprint decided it would be less messy to launch its fixed wireless services using another service provider's Internet backbone than to switch at a later date when Sprint's Internet business is sold. Sprint has a close relationship with EarthLink already. In fact, all Sprint residential Internet access service users were transferred over to EarthLink nearly 2 years ago.
While Sprint's Broadband Direct services will offer consumer and business users a high-speed alternative to dial-up, digital subscriber line and cable modem offerings, Broadband Direct is somewhat limited in functionality and reach today. Broadband Direct is available only in Phoenix and supports only Internet traffic.
But Sprint is planning additional fixed wireless services that will support voice and Sprint's Integrated On-Demand Network, says Tim Sutton, president of Sprint Broadband Wireless Group. And Broadband Direct will be available in 10 to 15 markets by the end of this year, Sutton says.
Broadband Direct runs over the 2.5-GHz to 2.7-GHz spectrum. Sprint spent $800 million last year buying up multipoint multichannel distribution service (MMDS) providers including Videotron USA, Transworld Telecommunications, People's Choice TV and American Telecasting. With these four providers, Sprint picked up MMDS licenses that cover 90 markets.
MMDS licenses were initially auctioned off by the Federal Communications Commission as an alternative to wire-line cable television systems. But the services were not a success.
Because MMDS was thought of as a one-way cable television transmission alternative, the FCC states that the licenses can be used only for one-way transmissions. But the FCC is expected to change its rules and let service providers support two-way traffic.
Sprint, like its pending merger partner MCI WorldCom, has special permission to support two-way traffic in certain cities, which is one of the reasons why Sprint is rolling out its service only in Phoenix. The service provider is also in the midst of rolling out new two-way MMDS equipment from Hybrid Networks, which supports point-to-multipoint communications. But the FCC is expected to officially change its MMDS license rule to support two-way traffic in July, Sutton says.
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