Sprint lowered its phone as a modem (PAM) option to $15/month from $50/month. PAM options allow customers to use 3G enabled handsets as Internet modems for laptops and PCs. In effect, the PAM replaces the need for a broadband data card. The service has specific requirements including the use of qualified handsets and qualified data plans. Customers must subscribe to a Sprint data plan of $30/month or more to qualify.

T-Mobile will be the first carrier in the U.S. to launch Google’s highly anticipated Android phone. Android is the open source mobile operating system being developed by Google and its partners, who together form the Open Handset Alliance. According to the New York Times, the new Google phone may be available in October. The phone will be manufactured by HTC, and is often referred to as the “Dream.” Google can’t wait to get Android going because it believes its long term future resides in mobile computing. The New York Times article quotes Google CEO Eric Schmidt as saying, “We can make more money on mobile than we do on the desktop, eventually.”

A first to market launch of Android could also help T-Mobile. They have been somewhat behind the wireless innovation curve, arriving late to both the 3G and smartphone parties. A successful Google phone launch, and the buzz it will create, could help T-Mobile’s competitive posturing with AT&T and the iPhone and Verizon’s continuing wireless gains. T-Mobile will have to leverage any potential Android buzz effectively, because they won’t have the limelight to themselves for long. Sprint is expected to follow with an Android launch sometime in 2009. Both T-Mobile and Sprint could use a boost from Android. Their competitors, AT&T and Verizon, seem to be hitting on all cylinders when it comes to wireless. Maybe Android can help them catch up.

Sprint announced the launch of Sprint Web, a new mobile browser supported on 40+ handsets. The new web browser “…offers an adaptive home page that delivers content based on the customer's previous usage, along with direct access to search from Google.” The new browser will automatically load on compatible phones, requiring no action by subscribers. The new Sprint Web home page uses technology by ChangingWorlds.

AT&T announced their intention to oppose the Sprint-Clearwire venture. AT&T says the regulatory review process isn’t robust enough because Sprint and Clearwire are under reporting the amount of spectrum they will actually utilize. AT&T argues that if all the spectrum represented by the Sprint-Clearwire merger were represented, the FCC would have to scrutinize the merger more closely. This issue, they argue, is grounds to deny the merger.

AT&T has reason to kill the merger. The combined entity will have the capability to get 4G to market before AT&T Mobility. In addition, the new Clearwire will empower cable companies to gain a wireless product. Both of these developments potentially impact the core of AT&T’s growth engines – wireless and broadband. A successful Clearwire will grab existing and potential market share from AT&T Mobility. Additionally, Clearwire’s cable partners will conceivably gain “three screen” capability, allowing them to counter AT&T’s current competitive advantage.

Update - The Wall Street Journal is reporting that negotiations between Sprint and SK Telecom are for strategic partnership considerations, not a merger. The two are apparently looking at ways to collaborate on issues like handset and application development.

The rumor mill has started again on Sprint. There are reports that Sprint is in play to be acquired by SK Telecom of Korea. SK Telecom is one of Korea’s largest wireless providers and has tried to enter the U.S. market before. Several years ago they partnered with Earthlink on the failed Helio MVNO. The remnants of Helio were recently sold to Virgin Mobile. Sprint takeover rumors have been circulating for the past year, with other rumored suitors to have been Alltel, Verizon, and even Comcast. SK also tried an earlier investment in Sprint for $5 billion, tied to the insertion of former Nextel CEO (and former Sprint Chairman after the Sprint-Nextel merger debacle) Tim Donahue as CEO. That plan was rejected by Sprint’s board, and Dan Hesse, formerly of Embarq, was appointed CEO.

Several blogs, including Boy Genius Report (BGR) and Engadget are reporting that Sprint intends to launch their version of femtocell service nationwide sometime this month. Sprint has been trialing femtocell technology in Denver and Indianapolis. Sprint’s femtocell product, Airave, sets up a mini cell tower in a subscriber’s home and utilizes the subscriber’s home broadband service as the transport medium into the core network. Femtocells are seen as a potentially disruptive force on the competitive landscape because in theory, they’ll provide better in home coverage for wireless calls. That better in-home coverage may provide enough ammunition for customers who saw poor in-home coverage as a reason not to cut their home wireline service, to go ahead and cut it now.

Sprint will sell the Airave for $99 and tack on an additional $15/month or $30/month depending on the existing wireless plan (individual vs. family, etc.), providing unlimited calls through the Airave. BGR reports that Sprint femtocell service may only be available to customers who subscribe to an unlimited wireless plan. Unlike similar products from T-Mobile, Sprint’s Airave does not utilize Wi-Fi. Rather it uses the CDMA technology present in all of its handsets, meaning any existing Sprint customer will be able to use an Airave, not just the ones with a Wi-Fi enabled handset.

Sprint released its main competitor to the iPhone with an aggressive entry price point. The Instinct, manufactured by Samsung, will be priced at $129.99, a direct shot across the iPhone bow, which is priced at $199 (or $299 for a better version). The Instinct offers many of the same features of the iPhone, minus the fanatical following. Sprint will market the Instinct through their retail footprint, website, and through telesales. It will also be sold through an exclusive retail window at Best Buy from June 20 - August 28.

The Instinct mimics the iPhone in many ways, including a touchscreen, visual voicemail, and advanced data and web friendly features. Unlike the iPhone, the Instinct also has a slide out QWERTY keyboard. Sprint is marketing the Instinct as their “… first EV-DO Rev A consumer-centric device,” referencing the consumer appeal of the iPhone and 3G broadband capabilities. Sprint needs all the help it can get. We’re sure the iPhone has contributed to Sprint’s customer hemorrhaging problem of late, which has been averaging one million+ customer defections per quarter this year.

All eyes will be on Baltimore this Fall. Barry West of Sprint/Xohm/Clearwire announced that Baltimore will be the launch market for their WiMAX effort in September. It will make Baltimore the largest North American market for WiMAX (for the time being) and a true test of WiMAX’s capabilities on a large scale. West announced the launch at his keynote presentation Tuesday at the WiMAX Forum Global Congress in Amsterdam. The launch is somewhat behind schedule. Sprint/Xohm had targeted Spring 2008 for these initial launches. The Washington D.C. market will follow Baltimore and launch WiMAX in the fourth quarter of 2008 according to West. The details are in this telecoms.com post.

Sprint introduced a new pricing plan that it hopes simplifies its wireless plans. The new pricing plans build on their Simply Everything $99/month plan. They offer a variety of service options, which include voice only, voice with messaging, and voice with messaging and data. Subscribers select an 1) individual or family option; 2) the aforementioned service option; and 3) the total number of monthly minutes to arrive at their monthly price. Depending on options selected the monthly fees range in price from $39.99 to $99.99.

A stated desire of regulators is to foster competition for broadband. They claim that many of their policies are created to achieve such a desired outcome. Sprint and Clearwire are exploiting this desire with regulators with their most recent regulatory filing. They are positioning WiMAX as the desired “third pipe” into the home - a broadband pipe that will compete with the other two dominant broadband pipes, DSL and cable modem. While still a concept, a wireless third pipe into the home is building momentum.

Whether it’s Sprint/Clearwire with WiMAX or Verizon/AT&T with LTE, wireless broadband technology is evolving quickly. Its ability to rival wireline broadband service is approaching – and quickly. I’ve heard the argument that wireless broadband will never really rival wireline broadband services, especially with FTTH gaining momentum. That’s certainly true. But I wonder if it misses the point. Wireless broadband won’t rival FTTH speeds, but it doesn’t have to. All it has to do is provide “enough.” When it does provide “enough,” a fair number of customers will see the same compelling convenience with wireless broadband that they saw with wireless voice. Those customers will cut the wireline broadband cord, in much the same way they cut the wireline voice cord. Will it be everyone? No. But will it be enough to create serious competitive implications. Absolutely.