Is T-Mobile Stretching the Truth about 4G?

In a press release, dated May 24, 2010, T-Mobile USA announced that 4G speeds were now available in Northeastern U.S. and in other major cities nationwide.

According to the company, "using the HSPA+ wireless technology standard, the T-Mobile network currently delivers theoretical peak download speeds of 21Mbps. T-Mobile’s rapidly expanding HSPA+ mobile broadband footprint makes it easy for customers to enjoy 4G speeds on existing mobile broadband devices"

 

Most industry analysts look at HSPA or High Speed Packet Access and its more advanced sibling HSPA+ as 3G. And AT&T was using first HSPA and then HSPA+ as stepping stones to its LTE rollout next year. LTE (short for Long Term Evolution) is widely considered 4G technology, although there were some early versions of a slower LTE that were labeled 3G.
What is most interesting in this little scuffle between wireless companies is the changed standard within T-Mobile itself. In a March 23, 2010 press release, the company referred to this same HSPA+ rollout as 3G technology.  
So the Company refers to HSPA+ as 3G in March but 4G in May. What has happened in the meantime?
Disappointing 1st quarter results showing customer loss
An FCC reports that suggest T-Mobile and Sprint Nextel falling further behind AT&T Mobility and Verizon Wireless
Rumors of an alliance with Harbinger Capital to get access to 4G networks.
Does this May 24 press release mean that the Harbinger deal is dead? Will we have to settle for HSPA+ while other carriers move to real 4G? When will the company reverse its disastrous decline in capital expenditures?
Instead of deceptive marketing, perhaps the Company needs to re-think its business model.In a press release, dated May 24, 2010, T-Mobile USA announced that 4G speeds were now available in Northeastern U.S. and in other major cities nationwide. According to the company, "using the HSPA+ wireless technology standard, the T-Mobile network currently delivers theoretical peak download speeds of 21Mbps. T-Mobile’s rapidly expanding HSPA+ mobile broadband footprint makes it easy for customers to enjoy 4G speeds on existing mobile broadband devices"

So what is the problem? T-Mobile is rolling out faster networks in urban areas…. That should be seen as good thing.

The very next day, AT&T started complaining about T-Mobile's misleading marketing. For an AT&T Mobility spokesman, "companies need to be careful that they're not misleading customers by labeling HSPA+ as a 4G technology." Click here to read more.

Let's step back a bit. 4G refers to the fourth generation of wireless technology. As such, it follows 3G, which followed 2G, which followed the 1G standard. We started with analogue technology for voice in the early 1980s (1G), advanced to digital transmission for data in the early 1990s (2G), moved to multi-media technology (3G) in the early 2000s. The 4G standard will mean very fast speeds to allow for mobile computing and easy streaming video.  4G also allows for integration of different types of communication (voice, video, e-mail, messaging) on the IP protocol. It promises to revolutionize how we use our cell phones.

The International Telecommunications Union defines 4G as the ability to hit 100 Mbps. HSPA+ is 21 Mbps.

Most industry analysts look at HSPA or High Speed Packet Access and its more advanced sibling HSPA+ as 3G. And AT&T was using first HSPA and then HSPA+ as stepping stones to its LTE rollout next year. LTE (short for Long Term Evolution) is widely considered 4G technology, although there were some early versions of a slower LTE that were labeled 3G.

What is most interesting in this little scuffle between wireless companies is the changed standard within T-Mobile itself. In a March 23, 2010 press release, the company referred to this same HSPA+ rollout as 3G technology.  

So the Company refers to HSPA+ as 3G in March but 4G in May. What has happened in the meantime?

Disappointing 1st quarter results showing customer loss

  • An FCC reports that suggest T-Mobile and Sprint Nextel falling further behind AT&T Mobility and Verizon Wireless
  • Rumors of an alliance with Harbinger Capital to get access to 4G networks.
  • Does this May 24 press release mean that the Harbinger deal is dead? Will we have to settle for HSPA+ while other carriers move to real 4G? When will the company reverse its disastrous decline in capital expenditures?

Instead of deceptive marketing, perhaps the Company needs to re-think its business model.