February 25, 2007 -- AT&T will hit the Springfield and Bloomington markets this summer with the company's first broadband wireless service outside Chicago. Verizon Wireless, meanwhile, is speeding up the downstate network it already has.
It has become a race-to-the-top competition for ever-faster broadband services, from video streaming to music downloads, that an industry executive said can only intensify.
"It's what's driving the competition out there. Who's got the newest toys?" said Doug Dougherty, president of the Illinois Telecommunications Association. The Springfield-based trade group represents phone, wireless and cable providers.
AT&T is completing system upgrades that should make wireless broadband service available in Springfield and Bloomington by midsummer, said Terry Stenzel, vice president of wireless operations in Illinois and Wisconsin.
The 3G (third-generation) service was rolled out in Chicago beginning in late 2005.
"Right now, what we're doing is designing the areas, and going out and looking at each cell site," Stenzel said, who added that broadband would be confined primarily to Springfield and Bloomington.
The company expects to introduce basic service at $59.99 per month, though a representative said some users of handheld devices and smart phones will pay nothing more. Wireless cards are expected to range from $50 to $80, depending on the plan.
Stenzel said the wireless network is separate from discussions with Springfield city officials for a citywide "Wi-Fi" network that would be free at slower speeds, while there would be a charge at higher speeds. Company and city officials are hoping to offer at least part of that network in time for the summer tourism season.
The broadband networks in both cases promise download speeds of 400 to 800 kilobits. According to the companies, most users should be able to download a 1-megabyte e-mail, the equivalent of a large PDF file or a small PowerPoint presentation, in less than 15 seconds.
Springfield and Decatur were the first markets outside of Chicago for Verizon's BroadbandAccess service last fall. The service also is available along Interstate 72 between the two communities, and in some surrounding towns, including Chatham, Rochester, Riverton, Sherman and Auburn.
While the upgrade does not expand the territory, regional director of data services Glenn Eggert said it would mean significantly faster speeds.
"It's kind of like layers on a cake. We're continuing to add layers," Eggert said.
According to the company, the network has average download speeds of 450 to 800 kilobits and upload speeds of 300 to 400 kilobits. The uploads are about six times faster than the original network introduced last fall.
The basic price of $79.99 per month with a one- or two-year service agreement has not changed, though users have to buy a new PC card or modem, for $150 to $180, to take advantage of the new speeds.
"It's an enhancement to our current infrastructure. It's not a major infrastructure, forklift upgrade," Stenzel said, who added that the higher speeds also would expand the variety of services available.
AT&T also just completed the addition of 71 cell towers in Illinois, including three dozen in central Illinois, to improve wireless coverage and quality.
Stenzel said the company also has completed integration of the Cingular network.
AT&T completed a takeover of Cingular wireless through last year's buyout of BellSouth.
Stenzel said the wireless operations would begin to shift exclusively to the AT&T brand name in the coming months.
"You'll start seeing it in our stores and agent locations ... this way we can advertise one brand, and it's a brand recognized all over the world," he said.
Dougherty said wireless carriers Sprint/Nextel, U.S. Cellular and T-Mobile continue to introduce technical innovations of their own. Legislation introduced last week that would make it easier for telecommunications companies to obtain cable television franchises in Illinois is a sign of the competition to come, he said.
Cable companies, including Insight Communications, also have begun offering phone service in some markets.
"It's the bells and whistles that's driving this. I think you're going to see the cable companies step it up a notch too," he said.
--TIM LANDIS--
