Sprint, MCI to push wireless Net services
The companies aim to make a space in an established market dominated by broadband cable and DSL services, both of which already claim hundreds of thousands of subscribers.
The two companies and a number of smaller firms are looking to link homes to the high-speed Internet over wireless connections. The companies aim to make a space in an established market dominated by broadband cable and digital subscriber line (DSL) services, both of which already claim hundreds of thousands of subscribers.
Wireless Net connections use a receiver dish attached to a home to obtain both television and high-speed Internet data signals from remote antenna towers. In the few cities where wireless Net technology has been introduced, it is comparable in price to cable modem services.
Companies that are focused on so-called fixed wireless Net access say they are poised to take on telecommunications giants like AT&T and the Baby Bells that offer broadband services. And there is much at stake: Analysts estimate that the market for high-speed Net access in the United States is expected to climb to $8 billion by 2002.
Only a few thousand people nationwide currently subscribe to wireless Net services, and the technology is still struggling with some speed concerns. Yet a number of companies are jumping in with products that support the nascent technology. Cisco today plans to unveil further details of its wireless strategy, and equipment giants Nortel and Lucent are working on their own wireless Net technology.
"The real driver is that Sprint and MCI WorldCom are now saying they're serious about using [this technology]," said Christopher Whitely, an analyst with Insight Research, a telecommunications market research firm. "Clearly [companies like] Lucent and Nortel will try to address those needs."
Analysts say that once wireless Net access is deployed on a wide scale, it should prove a strong competitor to cable and DSL. In Phoenix, the most advanced wireless Net service has held its own against services from local phone carrier US West and Net-over-cable service Excite@Home. The high-profile brands of Sprint and MCI WorldCom should help grab the attention of consumers interested in high-speed services.
But this needs to happen quickly, analysts say.
"There is a time to market advantage here," Brooks said, noting that cable and DSL already have a significant lead, and that satellite-based services will likely hit the market in 2002. "If they wait, the competition might be too fierce for them."
The merger between Sprint and MCI WorldCom will now place all of their joint wireless properties under the same roof.
Earlier this year, the long distance rivals began bidding against each other to buy fixed wireless companies, looking at the technology as a potential way to combat AT&T's cable buying spree. In just a few months, the two companies had snapped up enough wireless spectrum to cover about 60 percent of U.S. households.
"That's nothing to sneeze at," Brooks said. "But it's not revolutionary."