Wireless Updates

Sprint Nextel Corp. announced they will allow a wider range of their cellular phones to access corporate e-mail. Elsewhere, networking specialist Belden, Inc. has entered an agreement with Trapeze Networks for $133 million in an all cash deal. Lastly, enterprise customers of Verizon Wireless should expect for some improvements as a result of the Alltel, Corp. acquisition, though it may take time.

Focal Points:

• Sprint will soon start providing access to corporate e-mail to phones that are not traditionally deemed as corporate devices, such as flip phone style handhelds. Customers will need to pay an additional $9.99 per month for the service unless they are on an unlimited plan. As Sprint has recently been seeing significant user defections as customers leave the wireless provider for other networks, this is service is designed to stymie further abandonment. Sprint will also start selling the Samsung Group Instinct Apple Inc. iPhone competitor for $129.99, a full $70 less than the iPhone. Confirmation has additionally arrived that Sprint will begin to offer the forthcoming Palm, Inc. Treo 800w Microsoft Corp. Windows Mobile device. The 800w will feature 100 megabytes (MBs) of free RAM for user applications and data, Wi-Fi, and a price point of $249.99 with a two-year contract. Palm recently ported the Centro to the Verizon network, is expected to release the 800w for Verizon and AT&T Wireless in September.
• The addition of Alltel's 13 million customers to Verizon's 80 million will provide Verizon with the claim of the U.S.'s largest wireless network in addition to the most reliable. Verizon enterprise customers can expect better coverage for users that roam to rural areas, though roaming pricing will likely not decrease for some time. It is also important to recognize that the convergence in wireless network providers mimics that of high speed telephony data providers, as both AT&T and Verizon offer DSL and fiber-based options for consumers and business. This convergence potentially provides IT executives with even better leverage in negotiating enterprise-wide contracts and pushing for preferred pricing and consolidated billing.
• Data networking manufacturer Belden has announced its intention to acquire Trapeze Networks as it aims to become the premier provider of signal transmission solutions. Trapeze Networks develops wireless local area network (WLAN) solutions that are designed to provide high levels of performance, reliability, and security according to the companies. Belden is aiming to become the premier provider of reliable network infrastructure components for corporations across multiple vertical industries by focusing on providing performance-oriented solutions for wired and wireless network requirements.

Experton Group believes Sprint understands that it is faced with some daunting challenges as it tries to stop bleeding customers and begin rebuilding its market position. For the time being, the company is trying to leverage new phones and lower pricing than its competitors to jump start customer interest in its services. It is too soon to know whether the impact of these events will have the positive effect the company is desires, but it should help to reinvigorate some degree of interest from consumers and small businesses. IT executives satisfied with Sprint's service levels should take advantage of improved hardware and pricing offers, but most enterprises that are pleased with performance from other providers are advised to remain in a "wait and see" mode with Sprint until and if it can recapture steady ground. Experton Group believes Sprint has a shot at a comeback, and if it is to be achieved, will likely happen after its Worldwide Interoperability for Microwave Access (WiMAX) network becomes mature and widely available.

Verizon's quest to improve its network capabilities, increase its customer base, and provide open device and application access proves the company is a force with which to be reckoned. Experton Group believes the Alltel acquisition will be approved and finalized within 12 month's time, and that the company will continue to provide the most reliable network for the majority of the country. Upcoming fourth generation networks could change positioning, though Verizon is well poised to get its rollouts completed in a timely manner.