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European cellular phone providers have invested billions of dollars in acquiring 3G licenses and developing 3G networks. After six years since the licenses have been acquired, the industry has yet to see a profit made on its investment. The 3G technology that once boosted a firm's stock value is now weighing it down. Analysts are downgrading companies such as Vodafone and Cingular because of the uncertainty surrounding the future of the high speed data networks.

Executives leading the companies that have invested in 3G networks are divided. Spain's cellular provider Telefonica has filed a lawsuit to reclaim the money it spent on 3G licenses. T-Mobil plans to expand its 3G capabilities however. It is estimated that European mobile phone providers spent $129 billion, with Vodafone, Europe's largest network provider, assuming $34 billion of those costs. In the US, a combined $10 billion has been spent on 3G by Sprint Nextel, Verizon Wireless, and Cingular.

Mobile phone providers have become so heavily invested in the 3G technology, many must continue their support of the high speed data network and hope that subscribers will see value in the service. As other, inexpensive technologies become more available, such as WiMAX, there is the possibility that Vodafone and other network providers will be faced with dealing with an expensive liability in the near future.

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Cellular providers are taking notice of consumer attraction to Wi-Fi, with companies such as T-Mobile making plans to offer Wi-Fi Cellphones. The phones would switch interchangeably between cellular and Wi-Fi networks, which carriers recognize is a service feature that is inevitably on the horizon.

An effort already exists between Skype and Google to provide Wi-Fi enabled communication in Spain. Domestically, Clearwire, Corp. is investing in a WiMAX infrastructure which would accelerate the access to wireless connectivity and Wi-Fi phone calling. Analysts expect cellular carriers and Internet providers alike to soon offer a Wi-Fi enabled phone service, equipped by Wi-Fi Headsets.

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Analysts report that Sprint Nextel is nearing its decision on which technology will support its high speed wireless spectrum. Speculation surrounds a projected partnership between Sprint Nextel and Clearwire, Corp. which has announced plans to create a nationwide WiMAX network.

The partnership would benefit Sprint Nextel because of the complementary markets Clearwire currently services. A final announcement is expected this summer.

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As notable companies in the telecommunications industry prepare to roll-out the next generation of wireless services, notable individuals in the industry also have plans underway. Billionaire Craig McCaw, wireless service icon, is promising that his current communication company Clearwire will provide a nationwide, high-speed wireless network in three years.

The technology, known as WiMax, has received a $900 million investment from Intel and Motorola. This partnership makes the prospect of a mobile broadband network seem serious enough to put other wireless providers on edge. Currently, the big four wireless providers are investing billions of dollars in 3G which would compete with the WiMax technology.

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Speculation on the future of advanced wireless services continues as the Aug. 9, FCC auction of airwaves approaches. The bidding is expected to raise $8 - $15 billion, but the revenue remains of secondary interest to analysts - many trying to offer the best prediction of how the airwaves will be used.

Intriguing partnerships have emerged, notably that of DirectTV and EchoStar Communications Corp. Sprint Nextel, Comcast, and Time Warner have also entered into an agreement to acquire a portion of the airwaves. The pairing of large media and telecommunication companies leads some to believe that bundles for advanced wireless services are on the horizon for the consumer. It is possible that the auction will lead to all inclusive and integrated packages for television, telephone, and the Internet.

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If you live in a metropolitan area, it is likely that you prefer the wireless services of one of the big four (Sprint, Verizon Wireless, Cingular Wireless, or T-Mobile). The top carriers are aggressive in large markets, but leave smaller, rural markets to niche wireless providers such as Alltel and Suncom Wireless.

Regional carriers are usually the first to invest in their rural markets, knowing a majority of their customers reside in these areas. This business strategy has worked well for the local wireless providers, allowing them to compete with larger carriers who upgrade rural markets on a secondary basis.

Regional carrier customers can often select from service packages which are comparable to the larger wireless providers. However, as larger carriers expand and upgrade their networks, companies such as Alltel and Suncom are aware that consolidation or greater competition is possible. The regional carriers are already offering alternative services, such as inter-network free calling and dropped call credit from Alltel. If the customer service novelties pay off, then we may see regional carriers operating much longer than some expect.

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The 2004 Sprint Nextel merger faced skepticism from industry analysts in regards to the compatibility of the seemingly disparate services. Executives at the time relayed excitement at the future prospects the merger would created.

Almost three years later, analysts have more to evaluate regarding Sprint Nextel's performance and they are not impressed. Most experts remain critical and have downgraded the value of Sprint Nextel's stock. They cite that that Sprint Nextel merger has not attracted new customers at the rate they had hoped. Better performance was seen before the merger, when the companies each held roughly 500,000 subscribers each, compared to the presently combined 660,000 customers.

The reaction in 2004 as a result of the merger was not laudatory. Some analysts still hold a buy rating on the Sprint Nextel stock, and hope that the companies new marketing campaign and customer service offers will stimulate growth.

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This story has personal interest to me. I am a previous AT&T Wireless Customer (Blue Network) who has my own stories about Cingular's attempts to force me to switch to the Orange Network (Cingular). I personally have had to buy an unlocked GSM phone and pay $25 for an AT&T sim card.

20 million former AT&T Wireless customers are being represented in a class action lawsuit that alleges Cingular downgraded their service and breached contract after the companies merged in 2004. The cingular lawsuit contends that the TDMA networks of AT&T Wireless were not maintained and forced customers to switch to a Cingular plan or pay an early termination fee.

A cingular lawsuit in California imposed a $12.1 million fine against the wireless phone provider. The founder of the watchdog group that filed the lawsuit, the Foundation for Taxpayer and Consumer Rights, estimates that "ten of millions" of AT&T Wireless customers were effected.

Cingular has denied the allegations of the lawsuit, but stated that last year $6.5 billion was spent improving its network.

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A partnership between Clearwire, Motorola, and Intel has been created to build the first national WiMAX network. Clearwire has raised $900 million from the two companies, which it will use to aggressively fund the WiMAX service deployment.

Intel will begin manufacturing chips for laptops to connect to the service, and Motorola has committed to building the infrastructure. WiMAX is expected to be cheaper and faster than the 3G networks that cellular service providers are developing.

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Bell South will expand its fixed wireless broadband coverage to five metropolitan markets during the third quarter of 2006.

The service promises downstream speeds up to 1.5 MBps. It will use the WiMAX 2.3GHz spectrum.

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A court has upheld the Maryland cell phone tax imposed on cellular and wireless services. Sprint, Verizon Wireless, Cingular Wireless, and T-Mobile challenged the tax, but the cell phone tax was found legal under Maryland law.

Qualifying as an excise tax, the cell phone tax is estimated to have raised $45 million since it began in August 2003.

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Manufacturers are preparing for the next phase of mobile telecommunication, WiMAX cell phones. Companies such as Intel, Qualcomm, and Texas Instruments have started to troubleshoot the energy consumption of WiMAX cell phones. Even though solutions are still in development, commercial use has already begun for the technology which is a DSL and Cable Internet alternative.

The news article suggests that WiMAX will offer superb improvements to the current wireless data network, but reader comments from user 'Dinesh' say otherwise.

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Details for the next generation of cell phones have been released, and the promises are sensational. The most anticipated change, and the basis for all others, is the new dual mode technology of cell tower signal and wi-fi. The wi-fi cellphones are expected to operate on the wi-fi band that PCs use to connect to the Internet. The switch to wi-fi cellphones also promises to enable television programming, scheduling, and rich media delivery to the handset.

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Plans have been announced by Sprint Nextel to acquire more shares of the 2.5 GHz spectrum. The company's strategy for this acquisition is to make their 2.5 GHz spectrum offering available nation wide, as opposed to select metropolitan areas.

Sprint Nextel has yet to disclose how the technology will be offered to customers, but says that it will meet the requirements given to it by the FCC for exclusive rights to the spectrum band before the 2009 and 2011 deadlines.

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