I’m trying to process the information coming out of the newswire and blogosphere regarding the ClearWire/Sprint story. For those unaware, an interesting batch of companies is coming out of the woodwork to contribute to the new company and in effect help build a wireless network. As Om points out, Google and Intel have contributed $1 Billion, $500 million came from Time/Warner and Comcast, and $100 million has been put out by Bright House Networks.
Speaking to VoipWatch’s Andy Abramson earlier today, we briefly discussed the interesting mix of companies coming together for this venture. I can see why Intel has jumped in as they have a large amount of capital invested into WiMax so they’ll do just about anything to see the technology prosper and be profitable.
However, considering ClearWire’s product is a fixed wireless alternative to other Internet service providers such as DSL and cable modems, what is Comcast and Time Warner’s interest in the deal? Why would these players want to present another option to their broadband Internet services? The only play I can think of is to be able offer a type of Internet service where their government-sponsored monopolies don’t exist. Or perhaps to offer cell phone service that is re-badged, like a mobile virtual network operator (MVNO)?
With WiMAX’s new resurgence, it’s definitely as a player in the 4G space as an alternative to cell phone carrier’s upcoming LTE network. In the US, Verizon and AT&T have said LTE will be the technology of choice for their 4G networks. How will WiMAX shake things up?
This is only an uniformed guess. But, given that I’m a Comcast customer with ancient cabling whose television and Internet connections often get shaky when there are any major media events, I have to imagine that the amount of data they’re starting to push through those pipes for television alone is starting to strain the existing infrastructure.
And that’s only going to continue to grow. As is that ever-popular high-speed Internet thing.
Rather than invest in even more buried-wire infrastructure, it would make sense to get the Internet types off of that pipe and on to another service. Especially in light of some of the fiber optic competition entering the markets.
Maybe? Maybe I’m idiot? Just a guess. 😉
P.S. Does anyone find it ironic that these folks are pushing the Internet signals INTO the air at the exact same time that they’re pushing television signals OUT of the air?
(trying again without OpenID – last time, it sent me to a WordPress “failed login” screen, and the comment didn’t go through…)
I think this is a good think for WiMAX adoption. Sprint is having too many problems, financially, it seems, for them to have a real chance of delivering a nationwide WiMAX network. Clearwire has already done a lot of the groundwork for getting WiMAX deployed, so it makes sense to have them take over.
As far as the investors, I think they make sense, too. Intel has an obvious interest in getting WiMAX actually, you know, available. Plus they’ve already invested many hundreds of millions of dollars in Clearwire, Xohm, etc. And Google is a no-brainer, too, given their history of promoting broadband access (free wifi in Mountain View, buying up dark fiber, their interest in the wireless spectrum auction, etc.).
I’m not surprised to see Comcast and Time Warner in there, either. I think they want to get their dirty evil tendrils in every aspect of broadband/internet access. I’d frankly rather not have them involved, but at this point, I think of them as a necessary evil.
It’s kind of weird knowing that my company (Intel) just bought a stake in a wireless carrier. 😉