The four largest wireless carriers in the U.S. are investing hundreds of millions of dollars into Orange County’s communications infrastructure.
The spending comes amid growing demand and storage capacity strains against the explosion of video and streaming data over mobile phones, tablets and other devices.
It’s a four-way fight, with Verizon Communications Inc., AT&T Inc., Sprint Nextel Corp. and T-Mobile USA Inc. counting on upgrades as a way to claim a lead in consumer and business markets here.
Dallas-based AT&T, the nation’s second-largest mobile carrier in subscribers behind Verizon, considers Orange County “critical” in its nationwide improvement plan, according to Andy Shibley, AT&T’s vice president and general manager of the Southern California region.
Many Investments
AT&T has made numerous investments in the county this year to boost speed and reduce dropped calls on its network. The effort has included 12 new cell sites and added capacity for 450 others; fiber-optic network connections that now enable 4G speeds on more than 500 cell sites; a new and upgraded distributed antenna system, or mini cell sites, at the Brea Mall; and added capacity for cell sites in the area around John Wayne Airport, a major commercial center.
AT&T is spending $20 billion nationwide on the plan this year.
The local portion of the plan follows major wireless and landline improvements here during the three prior years. From 2008 to 2010, the company invested more than $450 million in upgrades centered in Orange County.
Mobile data traffic on AT&T’s nationwide network has grown some 8,000% in the last four years. As customers consume more data, network traffic is projected to increase eight to tenfold by 2015, the company said.
AT&T employs more than 2,800 people in Orange County. It operates 24 local stores and has deals with 29 resellers to sell their products. The company is looking to hire about 100 people in its retail outlets, a spokesperson said.
4G Race
Rival Verizon Wireless, a unit of New York-based Verizon Communications, is seen as the early leader in the 4G race here. The company debuted what it calls its “4G long term evolution network” here late last year. The network promises to boost download speeds and allow users to do more with their smart phones.
“When it comes to speed, our competitors’ ceiling is our floor,” said Verizon spokesman Ken Muche.
Verizon doesn’t disclose specifics on local investments, such as cell sites, but it did say it invested $475 million in network improvements in Southern California in 2010.
In its second-quarter earnings report, Verizon said capital expenditures in the first six months, which include the LTE network, topped $8.9 billion.
Verizon continues to upgrade its 3G network as well, adding capacity to meet growing demand, Muche said.
It is seeing big gains in its business-to-business and machine-to-machine market segments as new electronic products, such as scanners and tracking devices, use Verizon technology.
In one application, tracking devices are placed on trucks that transmit real-time data on speed, air pressure, temperatures in storage compartments, and the frequency doors open and close, among other measurements.
Verizon’s Irvine campus, considered its hub in Southern California and the Western region, employs about 2,400 people.
Sprint Upgrades
Kansas-based Sprint has made more than 100 capacity upgrades to its 3G network in Orange County this year and has plans for nearly 90 more before year’s end. That includes in-building coverage, adding or updating new parts to a cell site, and adding antennas or T1 lines—fiber-optic lines that can carry roughly 60 times more data than a normal residential modem.
Sprint beat Verizon by a month in deploying its 4G network in the county last November. A month later, it announced a major plan to upgrade its network by installing equipment on towers to support multiple frequencies.
That will enable smart phones and other devices to use the optimum spectrum available, according to Kevin Kunkel, regional vice president at Sprint.
While 4G technology was heavily touted before its arrival, it has developed much slower than anticipated, in part because wireless carriers are running out of usable spectrum, hampering speed and connectivity in the process.
Wireless carriers, in essence, must find new ways to use available spectrum efficiently.
Sprint’s project, dubbed the Network Vision plan, aims to do just that.
The multi-year initiative is projected to cost between $4 billion and $5 billion.
Like Verizon, Sprint keeps its local investments under wraps.
Sprint employs nearly 500 people in the county. That includes Sprint employees and those who work for its prepaid brands such as Boost Mobile, Virgin Mobile and Assurance Wireless.
Sprint operates 14 local retail stores and has deals with RadioShack and Best Buy to sell its products and services. It’s planning to open outlets in Garden Grove and Lake Forest later this year.
“We are seeing the need to expand our retail footprint in Orange County,” Kunkel said.
Each store employs 15 to 50 people.
T-Mobile Launch
Bellevue, Wash.-based T-Mobile launched 4G service in Orange County in June 2010 and has continued to invest in infrastructure improvements. It has brought some 2,100 cell sites online in the Greater Los Angeles area since then as data traffic has increased 240% in the past year, the company said. Since 2010 it has invested more than $229 million in network improvements in Greater Los Angeles, which includes Orange County.
T-Mobile, the U.S. wireless operation of Deutsche Telekom AG, doesn’t break down local investments.
The company is expanding its local work force, adding marketing, operations personnel and employees to its retail stores. It recently established a group that targets small businesses and rolled out an unlimited talk and text package for that segment for $45 a month.
The company employs about 300 people in OC.
T-Mobile is being targeted by AT&T, which hopes to buy the company in a $39 billion deal.
