WiMax is going nowhere fast but that is not stopping a consortium of cable and tech companies from considering a plan to invest $3 billion more into a proposed bailout-through-merger of Sprint Nextel’s WiMax business (known as Xohm) and Craig McCaw’s Clearwire. The consortium that is reportedly being put together would include Comcast ($1 billion), Intel ($1 billion), Time Warner Cable ($500 million), Bright House Networks and Google ($500 million). This latest plan comes after Sprint Nextel’s disastrous $30 billion write-down last quarter of its Nextel acquisition, and is an attempt to salvage something out of that train wreck. It also comes after Intel recently balked at putting up $2 billion itself. Intel wants to sell WiMax chips and has already sunk $600 million into Clearwire. But even Intel has its limits. WiMax is a promising technology and these are early days. But even an extra $3 billion won’t be enough. Building out a nationwide WiMax network could cost as much as $8 billion to $12 billion. And there could be more technical hiccups. (An Australian WiMax provider is already giving up). Clearwire, which is already operating its broadband wireless service in parts of the country, lost $727 million last year, on revenues of $151 million. So far, it has raised at least $2.75 billions dollars through private investors ($900 million in 2006), an IPO ($600 million), and a $1.25 billion line of credit. As for Xohm, it has only soft launched with employees in three cities. Nevertheless, last year it cost Sprint Nextel $577 million in capital expenditures and operating expenses. I can see why Google might throw its hat into the ring here—anything to promote more broadband wireless networks. But Comcast and Time Warner Cable should stay away. The logic behind the investment seems to be that the cable companies could use the WiMax network to counter the moves by Verizon and AT&T into their turf (with TV service over phone lines). It is being suggested that the cable companies would be able to launch their own white-label mobile phone and high-speed Internet services over WiMax , or use it to distribute their TV content to computers and new digital devices. Here’s where that logic breaks down: 1. WiMax is more an alternative to fixed broadband Internet access than it is to mobile phone service. Verizon and AT&T have a huge head start and customer lock-in when it → Read More
Dan Hesse, Sprint Nextel’s new CEO and the man in charge of turning the troubled company around, said in a conference call yesterday that Sprint’s still exploring the possibility of a WiMAX partnership with Clearwire. “Sprint has an enormous asset—nearly 100 megahertz of un-utilized spectrum—and we have the opportunity to have a three-year head start with our Xohm service, true wireless broadband with multi-megabit speed,” he said, according to a mocoNews.net article. “We have had wide ranging discussions with Clearwire on potential relationships but no final agreements have been reached.” → Read More
It appears a new Nokia tablet is making the rounds in the rumor mill and this one comes WiMax-enabled. We’ll see what happens at CTIA in April. WiMax N810 Leaked, To Be Announced At CTIA? [via Into Mobile] → Read More
Remember the joint venture Sprint’s CEO, Hesse, was looking to form a couple weeks back that might help save WiMax? Well, it looks like Intel has taken the bait and Clearwire is joining in. According to sources close to the aforementioned companies, Intel is pitching in with $2 billion. Other backers are expected to be announced when the new deal is officially announced in the coming days. I can’t wait for WiMax! Sprint, Clearwire Near WiMax Deal [The Street] → Read More
Despite recent hiccups for Sprint in the last four to five months that may have led many to believe that Xohm aka WiMAX was dead in the water, we’ve learned that things are still on track for a spring time launch. However, it won’t be a full roll out of the service, but, rather, a soft launch, which is somewhat disappointing unless you’re in Baltimore, Chicago, or Washington, D.C.. Sprint’s vice president for technology development, Ali Tabassi, confirmed the roll out at MWC. When asked about a national roll out he was quoted as saying that he’s waiting “for finalization of our budget.” Yikes. It’s also worth mentioning that Sprint had anticipated reaching 100 million subscribers this year, but Tabassi put the kibosh on that as well. Sprint’s Limited WiMAX Launch Imminent [PC World] → Read More
Recent shakeups at Sprint have caused many to speculate that the WiMAX deal they had going with Clearwire would be dead in the water, but recently appointed CEO Dan Hesse is proving the naysayers wrong and looking to bring it back up to speed. What Hesse has done is put together a plan that would bring in outside funding by forming a joint venture with Google, Intel and Best Buy. That’s about all the WSJ states other than facts we already know about why each of the aforementioned parties would be involved in the WiMAX fun. Nothing is set in stone just yet, but WiMAX is the future and it was never not going to happen in the first place. Sprint Nextel in New WiMax Bid [WSJ] → Read More
Clearwire, a wireless service provider, announced today that it will offer subscribers Google applications in the first half of this year. Clearwire customers who have wireless Internet will be able to access Google applications like e-mail, calendar and Google Talk instant message service. Clearwire was founded by Craig McCaw. McCaw said the company also plans to provide Google’s Web search services on future Clearwire Web portal applications but no tentative date was given. Clearwire stock has fallen from $18 since November of last year after Sprint Nextel announced it was ending a previously announced collaboration with Clearwire. The two companies had planed to let their customers roam on each other’s networks. Clearwire shares were up $0.25, or 1.8 percent, and sold for $14.24 this morning on the NASDAQ. → Read More
Sprint is supposed to roll out its WiMax network in Chicago and Washington, DC by the end of the year and it says it’ll still do that despite news today that it met for dinner with Clearwire, said “it’s not you, it’s me,” and split. → Read More
Now this is what I’m talking about. I keep hearing about Clearwire and their “wireless” broadband. While it technically is wireless, meaning that you don’t need to run any cable to your house, it’s not “wireless” in the way that we generally use the word “wireless”, meaning truly mobile. Clearwire till now has had you rely on a base station for access, which acted as a DSL or Cable modem. It plugged into your wall for power, and you’d need a switch or hub to share that connection to your home PCs, not really wireless in the modern sense. But now Clearwire’s offering a PC card that gives your laptop a connection straight through to its WiMAX network. This is truly mobile, you can take your portable anywhere you have WiMAX coverage and have real broadband access. In our opinion this is what Clearwire should have been doing all along. → Read More
Today Sprint and Clearwire announced that the two companies will be partnering to create a nationwide mobile broadband network. Using the 2.5GHz spectrum as the foundation, this network looks to be one of the first of its kind. With super-fast speeds and availability from New York to San Francisco, this could very well be the boost Sprint needs for its image in light of recent consumer-related events. But Sprint and Clearwire are helping more than just a dude with $60 a month to burn. Government facilities, schools, universities, and public works will all be able to use the WiMax network to benefit employees. Of course, this is all provided that everything clears with the FCC and Department of Justice within the next 60 days. Hit the jump to see what both companies have to say about the announcement: → Read More
Today Sprint Nextel and Clearwire have announced plans to jointly construct the nations first mobile broadband network using WiMax technology, and to further promote the global development of WiMax-based services. This network is being designed to deliver mobile broadband services across the nation, including urban, suburban and rural areas, and Sprint Nextel and Clearwire expect to build their own respective portions and enable roaming between the respective territories. “This arrangement will result in stronger competition in the rapidly growing market for broadband services, and will provide consumers, national enterprises and other businesses, educators and public safety agencies greater choice and faster access to a revolutionary mobile broadband technology,” said Sprint Nextel Chairman and Chief Executive Officer Gary Forsee. “It will further our objective of delivering mobile WiMAX service across the country and help fulfill our vision of delivering mobility products and services across all our networks.” This agreement isn’t a done deal; so don’t go out looking for WiMax laptop cards or a WiMax handset. The deal is subject to the execution of definitive agreements, but these expected to be finalized within the next 60 days. And of course the government will need to review this, which includes spectrum license assignments and transfers by the FCC. Under the network build-out plan, Sprint Nextel will build the network that will cover the largest 50 markets, and coverage should include approximately 100 million people by the end of 2008, with seamless roaming in the deployed areas. The mobile WiMax service will be marketed under a common service brand. Sprint Nextel Clearwire → Read More
If draft-N wireless still isn’t good enough for ya, then keep your eye out later this year for a Motorola manufactured card for Clearwire’s WiMax service. Clearwire Mobile just got the OK from the FCC to sell their new WiMax laptop card. You’ll get high speeds with Peyton Manning-esque ranges (as in long, long long distances) all on the 801.16e spectrum. No word yet on pricing, but according to The Giz, it’ll only be Vista and XP compatible, which means OS X users yet again get the wireless shaft. Clearwire Cleared for First WiMax Laptop Card; Is It Moto’s Baby? [The Giz] → Read More
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