4:45 PM -- SoftBank Mobile Corp. $20.1 billion play for a 70 percent stake in Sprint Nextel Corp. (NYSE: S) is likely to result in another 4G acronym becoming common parlance on the U.S. wireless scene.
The new 4G flavor you'll need to know is called Long Term Evolution Time Division Duplex (LTE TDD). SoftBank has already deployed an early version of the technology in Japan, so here's a little primer on the fresh 4G.
What it is
The crucial way LTE TDD, which is also known as TD-LTE, differs from the frequency division duplex (FDD) version of LTE deployed today in the U.S. is in what spectrum the technology is deployed on and how the signal is transmitted. TDD technology uses a single channel and a timed signal to separate uploads and downloads. FDD systems have two channels of paired spectrum separated with a guard band for uploads and downloads.
Advocates of TDD technology say that the single channel makes the network more bandwidth-efficient. It also makes it a very suitable technology for data-only wireless devices, much like SoftBank has introduced with its TDD launch this year. (See Just What Is LTE TDD Anyway? and What We Mean When We Say '4G'.)
LTE TDD can be deployed on the 2.6GHz band in the U.S. Sprint's WiMax partner, Clearwire LLC (Nasdaq: CLWR), holds large reserves of this bandwidth across the nation. It has already been testing LTE TDD in the U.S., although launch plans are less clear now. (See Clearwire Targets 31 Cities for LTE TDD .)
The scale of the technology could, however, drastically increase in 2013. China Mobile Ltd. (NYSE: CHL), the major backer of the technology, has started to hand out contracts to build out the networks in Chinese cities. (See ZTE Wins LTE TDD Deal in China.)
Deployments in a massive market like China could help to kick-start the wider LTE TDD device and infrastructure market around the world.
For more
Catch up on our SoftBank-Sprint coverage below:
Interesting theory, Headcoach & it makes some sense
One thing to think about is that Sprint's additional investment in Clearwire is supposed to close in a month & the Softbank deal not until the early part of next year. If the latter were to fall through, Sprint would still have majority ownership of Clearwire -- a status it previously tried to avoid.
It's not clear yet what, if any, roadblocks the Softbank/ Sprint deal might encounter. But it's probably a good risk for both of the companies. As you note, this may be the best shot Softbank has at gaining the spectrum it wants in the U.S. market. And for Sprint it's a way to hasten its LTE network buildouts.
This is true. But I think it has to do with a foriegn company buying 100% of the company....not 47, 52 or 70%. It just says that spectrum can not be sold to foreign companies.
But it doesn't say that foreign company can invest in other companys that have the spectrum. This is why a foreign company can not just come in here and buy up the whole spectrum from Clearwire.
Plus, they are investing in Sprint, who only owns 47% of Clearwire. But I have heard it's more along the lines of 52% (according to their filing with the FCC)
However the question still remains..."Why would you buy $20b worth of a FDD-LTE if you are going to turn around and use as faster TDD-LTE, if you just bought 70% of a FDD-LTE?
Logic would dictate that the goal is actually Cleariwre!
Last I checked T-Mobile was owned by Deutsche Telecom and Verizon Wireless was 50% owned by Vodaphone, so it it not clear to me that any prohibition against foreign ownership of spectrum has any effect upon the practical control of spectrum.
I was told that the difference between the two was like you radio in your car. LDD: The channels that you set (1 to 6) you can preset and if you want to go to a certain station you just click the button. Where as TDD is like the serch button. If you click on it, it goes and seeks out the next available station.
However, why would anyone spend $21 billion on a 4G network that doesn't work with their network. Sprint had a 4G-LTE- FDD and Softbank has a 4G LTE-TDD network. It's like oil to water.
But, there's that little deal called Clearwire which has a 4G LTE-TDD....hum. Isn't that something. Plus, Clearwire is the one with all the Spectrum....hum.
Softbank has an ACE in the hole with Clearwire. Oh, and TDD-LTE is better for Video downloads...yes? China Mobile had some successful test a couple of months ago and it's download speed was 1.3+ Giga Bits per second...yes?
So on that note...why would Softbank invest $20B in an FDD...yeah....NOT! They are really investing in Clearwire...but in a round about way.
If I were to speculate, I would say the game is not over with Clearwire and Sprint is just moving things around to take on...Dish to provide the third section of a bundle! Look out Cox sucker, Comcast, and Time Warner your throttling days are just about over.
If I were AT&T, I would try to figure out how I am going to compete with this. AT&T has now been pushed out of the number 3 spot globally and is a distant 4th.
So let's see. Is there a rule about owning US spectrum by a foreign company from a foreign country? Yes....they can not own spectrum. This is why things are kind of hush hush way with Sprint not really saying...1 + 1 = 2.
No LTE TDD support in any Sprint devices yet. But yes, Clearwire & SoftBank both work on 2.6GHz band for TDD so that *could* open things up in the future.
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4G State of Play: LTE in the USA 3:50 PM With the Chicago deployment expanded, Sprint now has LTE up in 49 markets. Here's a snapshot of 4G's state of play in the USA
Who's Buying Clearwire Shares? 4:40 PM At $3.38 a share, Clearwire is trading way above the premium that the Sprint offer is supposed to establish
Is There Really a Spectrum Shortage? 11:20 AM The big three US wireless carriers appear to be better off with bandwidth than it would sometimes seem
4G in 2013: Not Just Speed, But Density Too 6:20 PM Verizon is close to its 4G target coverage, and rivals have laid out their plans. Here's what to think about next in the evolution of LTE
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