MetroPCS, Sprint Target LTE Devices, Spectrum
While MetroPCS intends to launch its LTE handsets in the second half of the year, Sprint claimed it’s free to offer potential LTE iPhones if Apple has such a device planned, their executives said during the Barclays Capital, High Yield Bond and Syndicated Loan Conference Tuesday.
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MetroPCS is working with five OEMs on LTE devices between $99 and $149, vice president Keith Terreri said. A challenge is that LTE devices are still quite expensive so the company tried to bring the price down by working with manufacturers, he said. That would help the carrier migrate customers from CDMA to LTE, he said. Most LTE customers signed up for either a $50 data plan, capped at 1 GB, or an unlimited $60 data plan, he noted. The carrier is evaluating additional data options that potentially include a higher price tier, he said. Currently about 5 percent of MetroPCS’ customers are LTE subscribers, Terreri said. The carrier’s LTE network won’t be as fast as the major national carriers’ but is still a significant enhancement, he said.
MetroPCS is interested in spectrum Verizon might have to divest as a result of its spectrum deal with the cable companies, Terreri said. The company is also interested in buying capacity from companies like Dish Network or Clearwire, he said. “In our markets we prefer to own the spectrum so we can control the customer experience,” Terreri said. “Outside of our markets, we'll need partners, particularly for 4G.”
Meanwhile, Chief Financial Officer Joe Eutenuer said Sprint’s iPhone contract with Apple is similar to Verizon’s and AT&T’s iPhone contracts. That means, he said, if Apple launches an LTE iPhone this year, Sprint won’t be disadvantaged. He declined to say if Apple has planned such a device. Eutenuer claimed Sprint’s LTE network would be as fast as Verizon’s and AT&T’s though Sprint doesn’t own the same amount of spectrum. Verizon and AT&T are double the size of Sprint so they need more spectrum to accommodate their customers, he said. Though Sprint has enough spectrum through its partnership with Clearwire, it’s always looking for more, Eutenuer said. The carrier could be a good hosting partner for Dish Network, he said.