AT&T (T) has announced a major advancement in its nationwide 3G mobile broadband network. The US telecom ace has decided to upgrade its HSPA 7.2 standard based 3G network to HSPA+ (High-Speed Packet Access Plus), which will double the existing network throughput. With this announcement, Ma Bell seems to have tweaked its previous plan of a direct upgrade from 3G to 4G.
The HSPA+ upgrade will catapult network speeds to offer a maximum downstream speed of 14.4 megabits per second (Mbps), compared to 7.2 Mbps enabled by the HSPA 7.2 network. AT&T plans to cover 250 million people with the advancement by fourth-quarter 2010, thereby expanding the reach of its high-speed network footprint.
Deutsche Telekom’s (DT) US subsidiary T-Mobile USA is the only other major national carrier which has taken the HSPA+ path. T-Mobile USA became the first operator in the US to commercially deploy the HSPA+ network in Philadelphia. The network boosted throughput by three-fold to offer peak downlink speeds of 21 Mbps.
At the CTIA wireless conference in Las Vegas in March 2010, T-Mobile USA revealed its plans to expand its HSPA+ standard based 3G network footprint through 2010. The operator plans to cover more than 100 metropolitan areas with HSPA+ by the end of 2010 addressing roughly 205 million Americans.
AT&T’s extensive nationwide 3G network has already covered around 370 US cities. The carrier is expanding fiber-optic backhaul connection to 3G cell sites (“fiber-to-the-cell”) to ensure its customers take full advantage of its high-speed network. AT&T’s 3G network is faster than its archrival Verizon (VZ) which operates a EVDO Rev A standard-based 3G network, offering peak download speed of 3.1 Mbps.
To further increase network throughput, AT&T is preparing for field trials of 4G Long-Term Evolution (LTE) network in 2010. Verizon and T-Mobile USA also have embraced LTE and plans to launch their networks in 2010 and 2011, respectively. Sprint Nextel (S), the other Tier-1 rival, is aggressively expanding its 4G WiMax deployments.
The HSPA+ network upgrade will open the door to AT&T for a smooth transition to LTE, which the carrier targets deploying in 2011. Moreover, besides offering a competitive network throughput, the HSPA+ network will provide the much-needed support for a wide range of wireless devices.
Read the full analyst report on “T”
Read the full analyst report on “VZ”
Read the full analyst report on “DT”
Read the full analyst report on “S”
Zacks Investment Research
Uncategorized