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HOME > ARCHIVE > Aug. 14, 2008 (Vol. 29, No. 16) > Verizon and Sprint Face Off in Push-to-Talk Battle

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Verizon and Sprint Face Off in Push-to-Talk Battle

Aug. 14, 2008 (Vol. 29, No. 16)

Let the games begin! In the race to win push-to-talk business, it’s Verizon Wireless coming up fast, challenging defending champion Sprint Nextel…

AT&T has a push-to-talk offering, too, but Verizon Wireless’ and Sprint’s services were the subject of heated discussions lately on Voice Report’s Telecom-Talk listserv. (www.thevoicereport.com/TelecomTalk)

Verizon Wireless has undertaken a marketing blitz in the past few weeks to win enterprise communications technology pros over with its upgraded push-to-talk (PTT) offering. Even before Verizon Wireless launched its ads portraying Sprint Nextel as a has-been (see the TV commercial at http://solutions.vzwshop.com/ptt/), questions arose about Sprint’s viability as a company and the fate of its iDen network.

But Sprint has long defined the PTT gold standard and brings lots of enterprise loyalty to the game.

Which carrier should you bet on? It’s a big decision: End users on one PTT network can’t talk to those on another, so it’ll be tough for you to turn on a dime once you commit to a provider. Here are five factors you should consider as you weigh your options:
 
#1: The Network

Verizon Wireless launched its new PTT service with the unveiling of two handsets: the Motorola Adventure V750 on July 21 and the G’zOne Boulder on July 29. The handsets are the first capable of performing PTT on Verizon’s evolution-data optimized (EV-DO) Rev. A data network.

(Verizon Wireless isn’t new to the PTT game entirely. The carrier launched PTT over its 1xRTT data network in 2003. But enterprise telecom pros complained about delays because of 1xRTT’s pokey transmission speeds [VR 10/11/07].)

Sprint, meanwhile, also uses EV-DO Rev. A technology for one of its existing PTT services. Sprint’s PTT devices connect in less than a second, says spokeswoman Sukhi Sahni. Sprint alleges that Verizon Wireless’ PTT takes longer than a second to connect. Verizon Wireless’ spokeswoman says it does not disclose its connection speed.

In addition to its EV-DO PTT service, Sprint simultaneously maintains the iDen network it acquired when it bought Nextel in 2005. Both services are marketed as “Nextel Direct Connect,” and EV-DO users can talk to iDen users and vice versa, says Chris Hackett, Sprint’s VP of business and government solutions. Sprint recommends customers needing high-speed data applications use the EV-DO version.

There’s been much speculation that Sprint could retire the iDen network in favor of its EV-DO offering, or be forced to move off the spectrum on which iDen operates so it could be used for emergency responders. Most recently, CNBC and Reuters reported that Latin American service provider NII Holdings, which uses iDen technology, is interested in buying Sprint’s iDen assets. 

But Sprint’s Hackett maintains in the most recent episode of Telecom Junkies that Sprint intends to continue operating the iDen network. (www.TelecomJunkies.com)

In fact, Sprint invested $6.5 billion in its CDMA and iDen networks in 2007; it added new towers and enhanced existing ones, Hackett says.
 
Verizon Wireless’ PTT works in its BroadbandAccess Rate and Coverage Areas, including 258 major metropolitan areas.

Click here to see if your enterprise’s locations are within Sprint’s PTT coverage area.

Sprint claims to be the only provider that offers international PTT. Sprint’s iDen/PowerSource devices can reach Argentina, Brazil, Canada, Chile, Mexico and Peru.

#2: The Devices

Verizon Wireless has two handsets available on its Rev. A PTT network: The Adventure passed military specs for shock, vibration, dust, solar radiation, high-temperature storage, high- and low-temp usage and altitude. It’s available for $99.99 after a $50 mail-in rebate and a new two-year agreement.

The Boulder meets military specs for withstanding shock, water and dust environments; plus the Boulder can withstand immersion, vibration, salt fog, humidity, solar radiation, altitude, and high- and low-temperature storage. It’s available for $129.99 after $50 rebate with a new two-year agreement, though corporate discounts are available.

Sprint offers 19 handsets for PTT use on its EV-DO network, and there are hundreds of devices for use on iDen, Sprint’s Hackett says. Sprint classifies eight of its PTT devices as “rugged.”

#3: The Price

Verizon Wireless customers with PTT-capable phones can add unlimited PTT for $5 a month per line.

Sprint’s Business Essentials plan gives you unlimited PTT, unlimited mobile-to-mobile calling, and free nights starting at 7 p.m. and weekends. The monthly price scales from $39.99 for 400 “anytime” minutes to $199.99 for 4,000 anytime minutes. You can pool minutes and add between two and five lines for $25 a month each.

#4: The Call Functionality

When you’re on a voice call with a Verizon Wireless PTT device, you cannot receive a PTT call. You won’t receive any indicators that you missed a PTT call, though the person trying to reach you will get a message saying you’re not available, Verizon Wireless says on its Web site.

Likewise, if you’re on a Verizon Wireless PTT call, you won’t be alerted when a voice call comes in. Incoming regular calls go directly to voicemail.

If you’re talking radio-to-radio on Sprint’s PTT service, you can’t receive Direct Connect or voice calls, says Ken Steinhoff, telecom manager at Palm Beach Newspapers, in West Palm Beach, Fla.

#5: The Carrier’s Financial Wellbeing

Verizon Wireless reports that its growth trend continues in its latest quarterly filing with the U.S. Securities and Exchange Commission: The carrier increased its subscribers 10.7% from June 30, 2007, to reach 68.7 million. It earned $12.12 billion in domestic wireless revenue in the second quarter, up nearly 12% from the same quarter a year ago.

Sprint, meanwhile, lost 901,000 subscribers in its second quarter of 2008, and reported its wireless revenues of $7.0 billion are 11% lower than they were for the same period a year earlier.

Sprint also wrote off most of the value of Nextel – $29.7 billion – in the fourth quarter of 2007. The carrier’s iDen network has dropped significantly in value: Analysts now say it’s worth $5 billion, far less than the $35 billion Sprint paid for it.  

Financial stats notwithstanding, Sprint has led the PTT market for years. Sprint’s Sahni boasts that Sprint has 15 years of PTT experience to Verizon Wireless’ five. And Nextel Direct Connect subscribers completed more than 90 billion PTT connections in 2007 (Sprint alleges Verizon Wireless only did a fraction of that).

Sprint boasts 17 million PTT-capable users; Verizon Wireless declined to reveal how many PTT subs it has. (

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Aug. 14, 2008
Vol. 29, No. 16