CES 2008

Sprint Adds to the XOHM Ecosystem and Hints at Service Models

| Jan 10, 2008 | Wireless, Wireless Infrastructure | Show Update

| Analysts: Bill Ho, Kitty Weldon, Peter Jarich

Current Perspective: Positive/Neutral Vendor Importance: High Market Impact: High

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Event Summary

January 8, 2008 – Sprint announced new ecosystem partners for its XOHM mobile WiMAX service. In particular, it was announced that Amdocs was awarded a multi-year contract to support service activation, customer management and billing, with SwapDrive supporting online data backup applications, McAfee delivering online security products and eTelecare Global Solutions providing, “voice and e-support customer care.” Device support from ASUSTek, OQO and ZYXEL was also announced.

Analytical Summary

• Current Perspective: Slightly positive on Sprint’s further expansion of its XOHM ecosystem as the company is now bringing together a larger and more comprehensive set of vendors. Aside from the earlier infrastructure and device vendors already announced, the additional details regarding new vendors and devices (converged devices) as well as core network components (e.g., billing, security, apps) are welcome in order to enhance the view of XOHM execution and build momentum towards its commercial launch. In addition, more specifics on services were divulged, alluding to service models beyond the standard subscription approaches prevalent in the wireless industry today. Despite this, XOHM’s future is still in question as important details such as timing are lacking on a commercial (vs. soft) launch.

• Vendor Importance: High to Sprint as the company is still committed to a successful XOHM offering. As such, it needs to foster the WiMAX ecosystem that can help further its vision and shoulder the burden of marketing it to the buying public. Moreover, any positive XOHM announcements positions the company favorably as executing on a high stakes and controversial bet, while distracting people from the fact that Sprint’s commitment could be wavering or could be altered when new CEO Dan Hesse ultimately makes the ‘go, no go’ decision.

• Market Impact - Wireless Services - U.S.: High on the wireless services segment because Sprint is rolling along. One of the fundamental points that Sprint has pushed is that WiMAX provides it a competitive advantage in delivering mobile-DSL like speeds ahead of competitors. Since LTE as a technology is still in development and at least two to three years away, any successful data service adoption will likely provide strong differentiation against other wireless competitors. Moreover, the promised new data service business models, if well-received, may set consumer trends for other service providers, wireline and wireless.

• Market Impact - Enterprise Mobility - U.S.: High on the enterprise mobility segment, because Sprint is rolling along. One of the fundamental points that Sprint has pushed is that WiMAX provides it a competitive advantage in delivering mobile-DSL like speeds ahead of competitors. As LTE as a technology is still in development and at least two to three years away, any successful data service adoption will likely provide strong differentiation against other wireless competitors. Moreover, the promised new data service business models, if well-received, may set trends for other service providers, wireline and wireless.

• Market Impact - Wireless Infrastructure: High on the WiMAX infrastructure and broader WiMAX markets. Though initial mobile WiMAX momentum may be driven by emerging market applications, Sprint has becomes a high-profile example of what the technology is capable of. Thus, while the market will move forward with or without Sprint, Sprint’s ability to pull multiple device, network and application vendors into its ecosystem is important for showing what the technology can do as well as the market’s support for WiMAX. In short, Sprint’s new partners could help other operators looking at WiMAX to see the technology as more attractive.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

| Client access - Wireless Services - U.S. | More information
| Client access - Enterprise Mobility - U.S. | More information
| Client access - Wireless Infrastructure | More information

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