T-Mobile Says 4G Can Wait

It isn't clear whether the latest statements from T-Mobile USA about fourth-generation networks, its preference for air interface or its timetable for 4G migration necessarily add much new insight about what T-Mobile USA might do in the future about its own 4G choices.

Some will speculate that the firm's clear preference for LTE mean it would not invest in Clearwire under any circumstances.

That is among the inferences one could draw, but not by any means the only conclusion. It is correct that T-Mobile USA has some time to make a firm 4G decision, given its recent HSPA+ upgrade that will support bandwidth highly comparable to LTE.

As far as its ultimate migration to 4G, it remains unclear whether there is any path for gaining the needed 4G spectrum other than leasing it from a partner, or possibly investing in Clearwire or some other firm that does have spectrum assets.

Some will point to T-Mobile USA's preference for LTE, not WiMAX, as evidence an investment in Clearwire, or buying wholesale capacity from Clearwire, is not a likely option. But that assumes Clearwire will run WiMAX as its own protocol, and will not, in fact, light an LTE network that runs alongside its current WiMAX network.

Both Clearwire and Sprint Nextel executives (Sprint is the majority owner of Clearwire) have said there is no technological barrier to running LTE alongside WiMAX, or ultimately even in some mode that essentially replaces WiMAX.

“We’ll look towards LTE at the right point in time for us,” Neville Ray, T-Mobile USA’s chief network officer, told Bloomberg.

“That ecosystem is going to be much richer than the competing one from WiMax, which is really a niche play,” Ray said. Most observers now would agree with the general outlines of that position.

Fourth-generation LTE networks promise average download speeds of about 10 megabits per second, compared with 1.7 megabits per second for 3G. But HSPA+ boasts speeds comparable to the LTE speeds AT&T and Verizon Wireless have been saying would be available commercially.

T-Mobile Says 4G Can Wait, Clearwire WiMax Is ‘Niche’