4:45 PM -- SoftBank Mobile Corp. $20.1 billion play for a 70 percent stake in Sprint Corp. (NYSE: S) is likely to result in another 4G acronym becoming common parlance on the U.S. wireless scene.
The new 4G flavor you'll need to know is called Long Term Evolution Time Division Duplex (LTE TDD). SoftBank has already deployed an early version of the technology in Japan, so here's a little primer on the fresh 4G.
What it is
The crucial way LTE TDD, which is also known as TD-LTE, differs from the frequency division duplex (FDD) version of LTE deployed today in the U.S. is in what spectrum the technology is deployed on and how the signal is transmitted. TDD technology uses a single channel and a timed signal to separate uploads and downloads. FDD systems have two channels of paired spectrum separated with a guard band for uploads and downloads.
Advocates of TDD technology say that the single channel makes the network more bandwidth-efficient. It also makes it a very suitable technology for data-only wireless devices, much like SoftBank has introduced with its TDD launch this year. (See Just What Is LTE TDD Anyway? and What We Mean When We Say '4G'.)
LTE TDD can be deployed on the 2.6GHz band in the U.S. Sprint's WiMax partner, Clearwire LLC (Nasdaq: CLWR), holds large reserves of this bandwidth across the nation. It has already been testing LTE TDD in the U.S., although launch plans are less clear now. (See Clearwire Targets 31 Cities for LTE TDD .)
The scale of the technology could, however, drastically increase in 2013. China Mobile Ltd. (NYSE: CHL), the major backer of the technology, has started to hand out contracts to build out the networks in Chinese cities. (See ZTE Wins LTE TDD Deal in China.)
Deployments in a massive market like China could help to kick-start the wider LTE TDD device and infrastructure market around the world.
For more
Catch up on our SoftBank-Sprint coverage below:
joset01, User Rank: Light Beer 12/5/2012 | 5:19:01 PM
re: Defining 4G: What the Heck Is LTE TDD?
No LTE TDD support in any Sprint devices yet. But yes, Clearwire & SoftBank both work on 2.6GHz band for TDD so that *could* open things up in the future.
twill009, User Rank: Light Beer 12/5/2012 | 5:18:59 PM
re: Defining 4G: What the Heck Is LTE TDD?
Last I checked T-Mobile was owned by Deutsche Telecom and Verizon Wireless was 50% owned by Vodaphone, so it it not clear to me that any prohibition against foreign ownership of spectrum has any effect upon the practical control of spectrum.
joanengebretson, User Rank: Light Beer 12/5/2012 | 5:18:54 PM
re: Defining 4G: What the Heck Is LTE TDD?
Interesting theory, Headcoach & it makes some sense
One thing to think about is that Sprint's additional investment in Clearwire is supposed to close in a month & the Softbank deal not until the early part of next year. If the latter were to fall through, Sprint would still have majority ownership of Clearwire -- a status it previously tried to avoid.
It's not clear yet what, if any, roadblocks the Softbank/ Sprint deal might encounter. But it's probably a good risk for both of the companies. As you note, this may be the best shot Softbank has at gaining the spectrum it wants in the U.S. market. And for Sprint it's a way to hasten its LTE network buildouts.
City kitty, country mouse or some other creature? The early 5G strategies in the US will either favor short-range speed or long-range coverage, but likely both on the same network.
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