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June 5, 2010

Sprint Nextel starting selling its new HTC Evo 4G handset yesterday. Made by HTC, the dual-mode smartphone works on Clearwire's Wi-MAX network where coverage is available and drops down to Sprint's CDMA EV-DO network when wireless coverage isn't available.

Since Clearwire, Sprint and the cable companies formed their partnership and began rolling out standardized WiMAX technology a year ago, the companies selling the service have been touting it as a mobile 'DSL' replacement.

But Sprint has been advertising the Evo under its “What can you do with 4G?” marketing campaign in anticipation of the Evo launch. Currently, Wi-MAX coverage is available in 34 U.S. markets.

The wireless handset sells for about $200 with a two-year service agreement after a $100 mail-in rebate with a new line activation or eligible package upgrade. Sprint is using its retail and business direct sales channels, tele-sales, online sales, and through Wal-Mart, Best Buy and RadioShack stores to sell the new Evo device.

Ross Rubin, executive director of industry analysis at The NPD Group says “unlike the Pre, this is a technological breakthrough. From a specification point of view, the device is top of the line in almost every respect.”

Rubin noted that anticipation for the EVO likely isn't as strong as T-Mobile USA's launch of the G1 handset in October 2008, also built by HTC, because the Evo is a refinement of Google's Android operating system.

Nevertheless, Sprint is further along in its 4G rollout than T-Mobile was in its 3G rollout when it launched the G1 on its 3G network. “Sprint is positioning the device as 4G, but also a strong 3G experience,” the analyst said.

Sprint played up its accompanying unlimited data plan, which is interesting in light of AT&T's announcement earlier this week that it would start capping its data usage at 2 gigabytes per month. For its part, AT&T noted that about 98.3 percent of its users consume less than 2GB per month.

Clearwire customers, which are using modems and USBs, are averaging 7 GB of data usage per month, CTO John Saw said previously, compared to 3G data card users, who average 1.4 GB per month and smartphone users who average 200 MB of use per month.

The handset uses the Android 2.1 operating system and features Qualcomm's 1 GHz Snapdragon processor. It has a 4.3 inch screen and two cameras for two-way video chat, which comes as a pre-installed application.

“With HTC Evo 4G's advanced features, like video chat and 3G/4G capability, customers may find themselves using a lot more data, so a plan with unlimited use is key," stated Carrie MacGillivray, program manager at research firm IDC, in the Sprint press release.

"Overall, wireless customers are looking for simplicity in their voice and data plans. Unlimited plans offer new Evo users the flexibility to use the device as they desire without any worry about exceeding a predetermined limit," added MacGillivray.

Customers who buy the device have to sign up for Sprint's Simply Everything Data 450 plan, plus pay an additional $10 for unlimited Internet, texting and calling.

Additionally, customers who want to use the Evo as a mobile hotspot must pay an extra $30 a month. The Evo can connect eight Wi-Fi devices.

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Source: Sprint Nextel.