Why the iPhone's Lack of 3G is Good for Sprint's XOHM

One major complaint about the iPhone is that the phone itself is not 3G enabled - it will not run on AT&T's HSDPA/UMTS data network, but instead runs on the older and slower EDGE network. Steve Jobs attributes this to battery life - a 3G chip in the iPhone would cut the already short battery life down even more.

Because the iPhone is exclusive with AT&T, many users opted to switch out of their old network, or pick up a second network. Some analysts say that more than 800,000 iPhones are estimated to have been sold by the fourth quarter. Almost all of these phones come with new plans.

This jettison of 3G technology will be one of the largest contributing factors to the success of the new WiMax network from Sprint - named XOHM. Sprint's XOHM is dodging a bullet - had the iPhone included 3G technology, the vast amount of users who were willing to switch would probably not see the reason to switch networks yet again two years down the road. The advantages of switching to WiMax from 3G are not as compelling as the advantages of switching to WiMax from EDGE.

Boasting a larger, more vivid display with more multimedia solutions, the marriage of the iPhone and a wireless broadband network would seem natural. In order to fully unlock the capabilities of this smartphone, one would need a higher speed connection. The 3G HSDPA/UMTS network may have been sufficient for most new iPhone users who would not be willing to reap the advantages of an even faster and less expensive network - a true wireless broadband network.

One thing to keep in mind is that most Americans at this point do not use 3G (or really even know about it) - they're still using EDGE or GPRS or other, older 2-2.5G networks. Sprint might believe that if they deploy their network fast enough, they'll catch most iPhone users as they upgrade from their slower network - they'll give them the choice between the expensive and slower 3G and the cheaper and faster WiMax. This is, of course, relying on Apple's adoption of WiMax technology. The poor results and hidden charges from AT&T, however, might persuade Apple to go a new route.