Sprint (S) set to make wireless handset comback this fall

Sprint Nextel Corp. (NYSE: S) is set to roll out this fall some cutting-edge wireless handsets that will hopefully give the struggling company ammunition to compete with the latest wireless gadgetry from larger competitors AT&T, Inc. (NYSE: T) and Verizon Communications, Inc. (NYSE: VZ). In some respects, the wireless cellular industry is seen by many consumers as a commodity, and the actual tools (handsets) are now the differentiating factors in the buying and subscription decision. AT&T knows all about this with the late-June release of the Apple, Inc.'s (NASDAQ: AAPL) iPhone.

Yes, Sprint is placing a huge bet on an emerging wireless technology called WiMAX, which it hopes will propel it further than any other wireless operator in the U.S. In fact, Sprint's already marketing the service under the 'Xohm' name. Until that effort is solidly underway, the company will be offering a slew of new phones for both consumers and business customers this fall.

Shortly thereafter, hopes the company, a whole new network built on WiMAX technology will give its customers a whole new way to use its wireless services. Most of this will be centered on data usage (not voice), as more and more consumers want portable email and web browsing with them everywhere they are. Well, at least this is the thinking Sprint has, and it's betting billions that consumers will bite at these new services.

Will Sprint's bet on wireless data usage by its existing customer base and the tech-savvy teenage and 20-something demographic pay off? The AT&T brand, to many kids I've talked to, is stodgy and uninspiring - regardless of the iPhone exclusivity the company has. Brands like Sprint and T-Mobile are hip. Notice that network capability and features are not mentioned there -- we're talking brands (things kids respond to). Sprint may be able to carve a hip, data-centric brand to this burgeoning age demographic who may be the first generation to use more instant messages and MySpace updates to replace voice calls.