At an event like the Consumer Electronics Show in Las Vegas, gadgets are like candy and the creme de la creme are the thinnest TVs, like the ones in the LG (SEO: 066570) booth, or the coolest and most advanced technology, like 3D-video recording and playback. So, when Sprint (NYSE: S) made a big deal out of its brand new wi-fi router that runs on both its 3G and 4G network, many rolled their eyes and moved on to the next thing.
But Sprint’s splashy press conference represented much more than a the roll-out of a modem that’s capable of connecting all of your wi-fi devices to either its 3G or 4G network – it was the official coming out party for Sprint’s consumer launch of 4G. In an interview, Sprint’s President Steve Elfman told mocoNews: “Our communications group is showing a little leg…You’ve just seen the biggest thing we’ve done on 4G. We’ll do a lot more. We’ve got to go on the road and are still explaining.”
To be sure, Sprint could have done a better job of getting the message out. The 8 p.m. event was a bit muddled and left already-tired journalists wondering why Steve Ballmer was there if he wasn’t going to announce anything. Not to mention, cooking demonstrations by Chef Mario Batali and a Comedy routine by Frank Caliendo only provided more distractions from the real message.
Here was the point: Sprint’s 4G network is ready for prime time, and now there’s devices in the market that consumers will actually clamor for…Up until now, it’s been a little unclear what the network, which is actually being built by Sprint’s joint venture partner, Clearwire (NSDQ: CLWR), is for when consumers just started understanding the benefits of 3G. So, an important part of the event was showing how the network would be marketed. Elfman: “The concept we are selling is that this is not like 3G, where you are going to get your next cool phone, it’s a lifestyle. Consumers are not prepared to pay another monthly recurring charge for each electronics device.” Instead, the Overdrive modem will connect five of your wi-fi-enabled devices at a time for a set price.
In different sectors of the massive hall Sprint rented, it built several scenarios around different themes. One area looked like a dorm, where a student could connect an iPod Touch, use Skype to make phone calls, and stream a move from Hulu or Netflix (NSDQ: NFLX) to their laptop. In the home, Sprint demonstrated how you can bypass your cable provider and stream HD movies to your TV; connect your Xbox 360 to the internet, and move pictures from your camera to a digital picture frame. In the theoretical office, you can video conference and download large files, and while on the go, you can watch movies on your laptop, connect a portable gaming device, like a PSP, and download music to your Zune. The Overdrive will be available starting Jan. 10 and will cost $99 with a two-year contract. The monthly contract will run you about $60 for service. That is the same price Sprint is currently charging for a 3G-only contract. Elfman explained that it is able to offer such low prices because the traffic is running on Clearwire’s network, not Sprint’s, which is a huge cost savings (even if they have to share a piece of the revenues with Clearwire).
Sprint’s CEO Dan Hesse, who also made a brief appearance at the event, said: “2010 is the year of Sprint 4G. By the end of the year, we’ll cover about 120 million people. It’s not just about speed—although it can be up to three times faster. 4G means four times the value, four times the amount of gigabytes you get monthly. If your device has wi-fi, Sprint wants you to be free to connect that wi-fi device anywhere.”
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