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Updated: T-Mobile USA Turns On 3G Today In NYC; Most Major Markets By Year-End

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T-Mobile USA confirmed in a release today what has been rumored for some time—it is launching 3G in New York City today. T-Mobile said the network, based on UMTS and HSDPA, will continue to be built this year, with most major markets being completed by year’s end—at which point it will be the last of the big four carriers in the U.S. to launch the network. Right now, the company is selling four UMTS handsets. Those phones will start using the voice network, but users will also be able to access the Web or download content much faster. In the coming months, T-Mobile says it plans to offer its first HSDPA device, and other data-centric devices that for instance, have full Qwerty keyboards. We would expect one of those devices to be the highly anticipated Google (NSDQ: GOOG) Android phone. T-Mobile plans to launch one of the devices based on the new operating system this year.

SEE ALSO: Updated: T-Mobile USA’s 3G Coming Soon; But Rumored Limitations May Disappoint

UPDATE: I just got off the phone with Neville Ray, T-Mobile’s SVP of Engineering Operations, to get a few more details about the launch. Here’s some interesting tidbits:

—3G speeds: The UMTS handsets will offer 200-300 kbps, which is up from its EDGE network of 50 to 80 kbps. Devices on its HSDPA network will be even faster at 600 kpbs to 1 mbps.

—PC Cards: When the other carriers launched there 3G networks, one of the first products they sold were 3G PC cards for high-speed connectivity from a laptop. T-Mobile hasn’t launched a PC card. “We continue to evaluate our options there; It’s a possibility by the end of the year, but our focus is on consumer and family. Our competition has pushed hard on data cards and productivity, but that’s not our core play….Consumers are becoming more aware of 3G services and capabilities.” He said they’ll be launching devices more relevant to consumers. “data cards won’t be our core focus.”

—On Timing: T-Mobile is the last of the big-four U.S. operators to launch in the U.S., but the carrier argued that it didn’t need to roll-out 3G any earlier because it’s focus was on the consumer, who wasn’t yet demanding higher speeds. Today’s launch was also later than expected. Here’s Ray’s response to both: “The market is ready for much greater mainstream use and broader adoption of broadband on a mobile device. We do a lot of work for and share experiences with T-Mobile International, and we all know the early days of 3G was not fun in Europe or the U.S. We are coming in at a great time, where the service environment is much richer, and the terminal devices are much better. The network will be launched in up to 25 markets by year-end.

—Hints at new services: “Clearly we are doing well today with the Sidekick and social networking on a product like that. That’s a 2.5g, but customers are doing 30 to 40 megabits per month. You’ll continue to see us play in those areas, which include social networking, sharing and communication, greater connectivity—we aren’t just focused on youth segments, but in the family space.” Other segments that have done well are the company’s success with Blackberry’s. He said big consumer news will come out as we near Q4.

—Advice to others: Part of the reason the network has been delayed is because the spectrum was still being used, and was difficult to clear. Ray offers this advice to operators who just bought spectrum in the 700 Mhz auction. “I’d say with any spectrum you’ve got to look at caution with clearance dates; I think the 700 MHz will clear closer to the time frames being talked about.”

—On 4G: Even though, T-Mobile is just getting it’s 3G network off the ground, it’s part of the 4G discussion through T-Mobile International. Ray said for those carriers that are looking at rolling out LTE on the 700 MHz spectrum they just purchased, he offered this advice: “The folks who have won that spectrum, are not going down a common path. They will have standardization issues and terminal issues. LTE is not finished or through the standardization process. T-Mobile [International] is moving hard and fast with LTE, and will be one of the first commercial launches. We aren’t excluded from LTE either. From the spectrum we bout in the AWS auction in 2006, we doubled our holdings and have a strong growth position for many years to come. At some point in time we’ll make our decision on 4G…We’ll make decisions appropriately, and continue to evaluate.

Sprint (NYSE: S) Nextel merger rumors: In the unrelated matter on whether Deutsche Telekom (NYSE: DT) was looking at acquiring Sprint Nextel, a T-Mobile USA spokesperson said: “No comment.”

May 5, 2008 11:00 AM ET

Posted In: Technologies / Formats, 3G, Companies, T-Mobile

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