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123webguru, NEW YORK (Reuters) - Sprint Corp. <FON.N> on Thursday said
it began selling high-speed wireless services to laptop
computer users, betting that the fast-growing market for mobile
data will offset falling phone call prices.

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Sprint begins high-speed mobile services

NEW YORK (Reuters) - Sprint Corp. (FON.N: Quote, Profile, Research) on Thursday said it began selling high-speed wireless services to laptop computer users, betting that the fast-growing market for mobile data will offset falling phone call prices.

Sprint follows Verizon Wireless into the market to enable customers to use the fast cellular links to their laptops to read e-mails and surf the Web while on the go.

Verizon Wireless, a venture of Verizon Communications Inc. (VZ.N: Quote, Profile, Research) and Vodafone Group Plc (VOD.L: Quote, Profile, Research), was the first mobile operator to introduce broadband cellular Internet services for laptops more than a year-and-a-half ago when it launched its Internet service in two markets.

Sprint, which is seeking government approval to buy Nextel Communications Inc. (NXTL.O: Quote, Profile, Research), said monthly service fees would start at $40 for downloads of up to 40 megabytes of data -- the equivalent of about 10 to 20 digital song downloads. Its $80-a-month price for unlimited use is in line with Verizon's charges.

Ovum analyst Roger Entner said Verizon, which launched high-speed handset services in February, has a head start but that the companies should have similar coverage by next year.

"By next year it really becomes a question of who customers like better," Entner said.

The two U.S. companies, along with most large operators around the world, are upgrading their networks in a bet that data services can boost their revenue even as the price of mobile phone calls declines amid steep competition.

Sprint plans to sell the service in business districts and airports in 34 markets in July. It expects to have coverage for 143 million people by the fourth quarter and 150 million people -- or roughly half the U.S. population -- in early 2006.

Verizon Wireless, the country's second-biggest wireless provider, already has services in about 50 markets covering about one-third of the U.S. population using the same high-speed technology, known as EV-DO.

Verizon plans coverage for 150 million potential customers by the end of 2005. Cingular Wireless, a venture of SBC Communications (SBC.N: Quote, Profile, Research) and BellSouth Corp. (BLS.N: Quote, Profile, Research), plans to have high-speed services in about 15 to 20 markets by year end.

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Sprint plans to sell new handsets and applications based on the higher-speed network by the end of the fourth quarter. It already has agreements to sell laptop cards from Novatel Wireless Inc. (NVTL.O: Quote, Profile, Research) and Sierra Wireless Inc. (SW.TO: Quote, Profile, Research).

Sprint said it expects its latest service to provide Web access average speeds of 400 to 700 kilobits per second, about six times faster than its current network.

Sprint shares were down 6 cents at $24.95 in afternoon trade on the New York Stock Exchange, where Verizon Communications shares were down 15 cents at $34.27

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