The rumors are true, Sprint is branding its WiMAX service "Xohm" (pronounced ZOAM). The Xohm WiMAX network will be open access, meaning that all WiMAX-certified devices will be able to operate on the network. Devices will not be required to have an additional carrier certification, as is true with traditional cellular networks today. The Xohm service is scheduled to launch in Chicago and the Baltimore/Washington DC area by year-end and other commercial markets will be launched by mid-2008.
Sprint also revealed updated financial targets for its WiMAX business that account for its recently announced a partnership with Clearwire:
- Sprint expects to generate between $2 billion and $2.5 billion in revenues for the 2010 fiscal year. About 80 percent of that revenue will come from new lines of business, the carrier predicts.
- The carrier expects the WiMAX business to be cash flow positive in 2011.
- Sprint expect $2.5 billion in capital expenditures for the business by year-end 2008, which is 20 percent lower than what Sprint expected. The reason for the reduction is the company's deal with Clearwire.
- By 2010 Xohm will cover 125 million people and could connect up to 130 million consumer electronic devices. This estimate doesn't include the Clearwire coverage area.
In other news, the carrier's push-to-talk service will launch on the company's CDMA EV-DO Rev. A network in early 2008. The service is being rebranded Nextel Direct Connect, which highlights the carrier's commitment to preserving the latter half of its full brand, Sprint Nextel.