How AT&T, Nokia pulled Windows Phone into the 4G LTE world

Microsoft wasn't ready for LTE, until AT&T and Nokia came knocking.

(Credit: Nokia)

The ink was barely dry on Nokia's deal with Microsoft to use Windows Phone more than a year ago when Nokia rushed to AT&T in an early bid to get a foothold back into the U.S.
AT&T was hesitant at first. The company's existing lineup of Windows Phone devices hadn't sold well, and Nokia hadn't had much of a presence in the U.S. AT&T was looking for a unique device suitable for its customers, but its principal hang-up was the lack of 4G LTE support, which was a dealbreaker.
So the two companies went to Microsoft, which wasn't prepared to move to 4G yet. Yes, LTE, or Long-Term Evolution, was part of Microsoft's road map, but not anytime soon.
"It certainly wasn't something they planned for," Jeff Bradley, senior vice president of devices, told CNET. "When you have a plan and working to execute it, and someone comes in and tells you to come up with a new plan, it's tough."
Spurred by Nokia and AT&T's request, Microsoft redrew its roadmap. What followed was a whirlwind schedule -- the phone came together far quicker than the typical 18- to 24-month development period -- and the emergence of the Lumia 900 at the Consumer Electronics Show in January.
The speed at which everything came together underscores the importance that the Lumia 900 has to all parties involved. For Nokia, the phone represents its best shot to return to the U.S., where its once-dominant brand has faded nearly into obscurity. AT&T, meanwhile, wants to wean itself off its reliance on the iPhone and find a third alternative to the growing Android-iOS duopoly. The Lumia 900's success will also determine whether Microsoft's Windows Phone platform has a shot beyond being a niche player.
"It's extremely important," Avi Greengart, an analyst at Current Analysis, said of the Lumia 900. "If you want to succeed, you need to be a player in the U.S."
The phone launches on Sunday.
Early LTE ambitions
When Windows Phone first launched in October 2010, AT&T was the premier carrier partner, carrying three devices in its lineup. But even then, roughly a year before it would launch its 4G LTE network, AT&T was already talking about the combination of Windows Phone and LTE. Microsoft, however, didn't consider LTE a priority at that point.
Even back then AT&T was rooting for Microsoft to mount a comeback. None of the carriers want to be wholly reliant on two platforms, and AT&T in particular has had a long partnership with Microsoft. The software titan powers the company's U-Verse Internet-based TV service.
But AT&T's initial big bet on Windows Phone didn't really go anywhere, and the carrier spent the most of the year touting a more robust Android smartphone lineup before Apple's iPhone 4S finally showed up last October.
AT&T's commitment to carry the three Windows Phone devices -- one each from Samsung Electronics, HTC, and LG Electronics -- saw the phones selling at a disappointing rate. As a result, they were quickly discounted, and then given away in exchange for a two-year contract. T-Mobile USA also had its own Windows Phone early, while Verizon Wireless and Sprint Nextel eventually offered one each. None of them made a real impression on consumers.
The initial software, while unique looking, didn't offer many basic features, and the lack of applications was a major weakness for the platform. What were decent specifications for the phones at the time was quickly surpassed by dual-core processors and flashier hardware from the likes of Android and the iPhone. A muddled marketing campaign -- one that focused on spending less time with the phone -- failed to convince consumers to try out the new experience.
Still, when Nokia went to AT&T last year, there was some interest in coming back to Windows Phone. With Verizon Wireless already well on its way to covering the country with its super-fast LTE network, AT&T had its eyes on bolstering its LTE lineup as well.
Charting a new course
Microsoft had a fairly rigid list of features and specifications for Windows Phone that it kept in order to maintain a consistent level of quality in its phones. At that time, the list did not include LTE.
"The timeline for LTE moved up significantly," Bradley said.
Microsoft, for its part, has said LTE has always been part of its plans, although it never really provided specifics on timing.
"Yes, LTE was always part of our roadmap. It was important to our partners, so we prioritized delivery," Greg Sullivan, senior product manager for Windows Phone, told CNET.
But the company wasn't prepared to quickly add a new wireless standard into its platform by itself.
"Microsoft still has to get used to the rapid innovation cycle in the wireless world," said Roger Entner, an analyst at Recon Analytics.