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Mobile WiMAX gets major boost
Logo of the WiMAX Forum industry group. Looks like a person with wings: a round circle in the upper left and oval shaped wings below.
Sprint Nextel has announced that it will spin off its nascent WiMAX network in the U.S. The wireless service giant will partner with Clearwire to create a new joint venture that will combine both companies' WiMAX assets to create a nationwide broadband wireless network, the two companies said Wednesday.
The deal is valued at $14.5 billion. Cable operators Comcast and Time Warner will join Intel and Google as important secondary partners. Together these companies have contibruted $3.2 billion. Comcast invested $1.05 billion, Intel is investing $1 billion, and Time Warner Cable and Google have contributed about $500 million each. Additionally, cable service provider Bright House Networks has contributed approximately $100 million.
WiMAX is designed to extend local Wi-Fi networks across greater distances such as a college or corporate campus, and to provide last-mile connectivity to an Internet service provider or other carrier many miles away. In addition, Mobile WiMAX offers a voice and higher-speed data alternative to the cellular networks.
For a detailed review of what WiMax is, see the article on HowStuffWorks.com at: http://computer.howstuffworks.com/wimax.htm.
For a video and audio review of what WiMAX is click on this link to a Fortune Magazine/CNN piece on Nokia's new WiMAX device: http://money.cnn.com/video/#/video/fortune/2008/04/16/fortune.tt.wimax.levram.fortune.
The involvement of these titans of cable and Internet services and IT hardware suggests that this is a very big deal that is intended to accelerate the development and deployment of WiMAX communications.
According to Jason Hiner at TechRepublic: "WiMAX is spreading at a strong pace throughout the world, but mostly as a fixed DSL/Cable alternative. With this Clearwire deal, the U.S. remains poised to get a large, ground-breaking “Mobile WiMAX” (802.16e) network that will enable a form of roaming broadband that is superior in quality and bandwidth to the current 3G broadband networks. The partnership between WiMAX and Cable broadband will also potentially create a simpler subscription model where consumers and businesses can get both fixed and mobile broadband as part of one package."
Here's the link to Jason Hiner's article at TechRepublic: http://blogs.techrepublic.com.com/hiner/?p=690&tag=nl.e019
CNet News provides additional details of the deal (here's the link): http://www.news.com/8301-10784_3-9937513-7.html?tag=nl.e703
Survey: Cell phones more important than wallets
WiMAX still faces financing obstacles
The article is much less enthusiastic about the venture, saying that: "The hotly-anticipated deal, the brainchild of Clearwire's Craig McCaw, landed with a cold thud Wednesday when executives announced that the new venture is starting off with a '$2.3 billion funding gap.'"
"In other words," the article said, "the first order of business will be either fundraising or scaling back the 130-city network expansion plan."
The article concludes by saying: "Banks in this credit-crunched climate might not rush to lend a pile of cash to a money-losing venture that will still take another nine months to close. So investors can probably brace for a wave of dilution as the company tries to sell more stock."
See the full article at: http://money.cnn.com/2008/05/07/technology/wimax.fortune/index.htm?postversion=2008050715