Sprint Nextel Corp. is expected to unveil the first U.S. phone compatible with a fourth-generation mobile network next week, according to people familiar with the matter.

The device, dubbed the Supersonic by HTC Corp., represents Sprint's latest and biggest bet that its WiMax network and promises of a speedier wireless connection will reverse the struggling carrier's fortunes. The company is racing to make WiMax services, run by partner Clearwire Corp., available to more people as it hopes to exploit its temporary lead over the next-closest carrier with 4G aspirations.

"It's now or never," said Avi Greengart, an analyst at Current Analysis."They won't have an exclusive on the 4G marketing message indefinitely."

The device is expected to be the centerpiece of a presentation made by Chief Executive Dan Hesse during the CTIA Wireless trade show Tuesday.

Over the next few years, wireless carriers will be progressing to 4G from the currently used third-generation, or 3G, technology. The move allows the carriers to deliver more bandwidth at a lower price, making them more efficient. The carriers say the technology also offers higher wireless downloading speeds, although some dispute the significance of the advantage once more people convert to 4G.

Sprint, thanks to its investment in Clearwire, is seen having a head-start in 4G deployment over its larger rivals, Verizon Wireless and AT&T Corp., and it has made WiMax the focal point of the company's strategy. Earlier this month, Sprint said it changed its short-term incentive plan for employees, making new WiMax customers a priority.

"Expanding the coverage of 4G in 2010 will be an important catalyst for continued improvement in Sprint's post-paid subscriber results," Hesse said during the last quarterly conference call.

For Clearwire, the phone marks a start of an aggressive push of its service. WiMax originally was positioned as a replacement for the Internet connection in the home but slowly has gotten louder over its mobile capabilities. The Clear service is already in 27 markets, and the company plans to cover up to 120 million people by the end of the year.

As part of their agreement, Sprint will pay Clearwire a fee for each 4G customer, with a higher rate when the customer lives in a Clearwire market, according to Macquarie Securities analyst Phil Cusick, who said in a note early Wednesday that he expects Sprint to launch the Supersonic next week.

Sprint previously said it plans to start selling the WiMax phone in the summer.

Sprint sees WiMax as its way of stemming the loss of lucrative customers who sign long-term contracts. It has partially offset those losses by adding lower-end customers who pay on a month-by-month basis. The WiMax strategy is important enough that the company opted to infuse Clearwire with an additional $1.18 billion in capital in November. Sprint owns a majority stake in Clearwire and intends to continue investing in the company.

Sprint and Clearwire have enjoyed a lead with 4G, but the gap is quickly shrinking. Verizon Wireless, which is jointly owned by Verizon Communications Inc. and Vodafone Group Plc, plans to have its own 4G technology, which runs on a rival standard called LTE, in 25 to 30 markets by the end of the year.

The companies need to make a splash quickly with WiMax, as many key players in the wireless world are lining up behind LTE, Greengart said. Last week, Cisco Systems Inc. shuttered its WiMax business, following fellow network vendors Alcatel-Lucent and Nokia Siemens Networks.

While there are WiMax deployments around the world, Clearwire runs the only major WiMax network in the U.S.

The Supersonic illustrates that there remains support for WiMax.

"It shows that there is commitment and willingness by the handset manufacturers to build this stuff, which is big," said Roger Entner, an analyst at Nielsen.

For HTC, the Supersonic marks another high-profile phone as the company increasingly makes a name for itself. Over the past few years, HTC has transformed from an anonymous manufacturer of carrier-branded smartphones to a maker of buzz-worthy devices. HTC's profile has risen enough to draw the ire of Apple Inc., which earlier this month filed a lawsuit against the Taiwanese handset maker alleging patent infringement.

Sprint shares recently rose 4% to $3.59. Clearwire was up 1% to $8.24.

 source:totaltele