& cplSiteName &

Clearwire Can't Stray From WiMax 'Til 2011

Michelle Donegan
LR Mobile News Analysis
Michelle Donegan
10/7/2009
50%
50%

Clearwire LLC (Nasdaq: CLWR) cannot switch from mobile WiMax to Long Term Evolution (LTE), even if it wanted to. At least that's the case until 2011 because of an agreement it has in place with Intel Corp. (Nasdaq: INTC), Unstrung has learned.

Recent comments from Clearwire CEO Bill Morrow indicated that the U.S. WiMax operator was open to switching to another 4G technology -- namely LTE -- in the future. (See Clearwire Testing in Silicon Valley as LTE Looms and Clearwire Is a WiMax Company (For Now).)

But the carrier's latest Form 10-Q, filed with the Securities and Exchange Commission (SEC) in August, reveals that an agreement with Intel -- WiMax's biggest backer -- ties Clearwire to the wireless broadband technology in more ways than one.

In the filing, Clearwire affirms its allegiance to WiMax and stresses the cost of changing to another technology:

    We have committed to deploy a wireless broadband network using mobile WiMax technology and would incur significant costs to deploy alternative technologies, even if there are alternative technologies available in the future that would be technologically superior or more cost effective.


But beyond Clearwire's own technology strategy to stick with WiMax, the carrier has made certain commitments to Intel, under what is referred to as the "Intel Market Development Agreement." According to that agreement, Clearwire has:

    ...committed to undertake certain marketing efforts with respect to our mobile WiMax services and are subject to certain restrictions on our ability to commercially deploy alternative wireless broadband or data technology on our networks through November 28, 2011, as long as certain requirements are satisfied.


One of the reasons Clearwire would even consider changing technologies is that vendor support for WiMax devices and infrastructure in the future is uncertain.

"We cannot assure you that… vendors will continue to develop and produce mobile WiMax equipment and subscriber devices in the long term, which may require us to deploy alternative technologies," Clearwire notes.

Clearwire might also consider switching to a competing technology like LTE for competitive reasons, if, for instance, another technology comes along that allows other operators to compete more effectively and deploy more cost effectively than mobile WiMax. This is a scenario, which the filing states, "may require us to deploy such technologies when we are permitted to do so." (See WiMax & LTE: Kissin' Cousins.)

Another part of the agreement with Intel involves a revenue sharing deal on Intel-based devices, like notebook computers. Clearwire will pay Intel a portion of revenues from customers using certain Intel-powered products as well as activation fees for some devices for an initial period.

In response to Unstrung's questions about the agreement with Intel, a Clearwire spokeswoman would only confirm that it exists. "Yes, we have a market development agreement with Intel," she said in an email.

CEO Morrow said last month that Clearwire was a WiMax technology company for the "foreseeable future," and the 10-Q doesn't contradict that. But the limit on "foreseeable" now looks like the end of 2011.

— Michelle Donegan, European Editor, Unstrung

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 3:54:43 PM
re: Clearwire Can't Stray From WiMax 'Til 2011


Just wondering why this debate is always painted as an either-or. Couldn't Clearwire offer both WiMAX and LTE should the market call for both?


I mean -- they've got enough spectrum to do so, if and when LTE surfaces at 2.5 GHz bands. And you could probably combine some of the backhaul/core since it is all IP.


Doesn't AT&T offer DSL and cellular? Why would Clearwire have to ditch WiMAX to offer LTE, leaving funding questions aside?

kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 3:54:43 PM
re: Clearwire Can't Stray From WiMax 'Til 2011


Just wondering why this debate is always painted as an either-or. Couldn't Clearwire offer both WiMAX and LTE should the market call for both?


I mean -- they've got enough spectrum to do so, if and when LTE surfaces at 2.5 GHz bands. And you could probably combine some of the backhaul/core since it is all IP.


Doesn't AT&T offer DSL and cellular? Why would Clearwire have to ditch WiMAX to offer LTE, leaving funding questions aside?

joset01
50%
50%
joset01,
User Rank: Light Beer
12/5/2012 | 3:54:42 PM
re: Clearwire Can't Stray From WiMax 'Til 2011


Hey Kaps, I guess you should ask Intel, as they apparently appear to see it as an either/or issue.


 

Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, July 27, 1:00PM EDT
The Changing Face of the Data Center World
Rodney M. Elder, Senior Solutions Architect, Equinix
UPCOMING COURSE SCHEDULE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
in association with:
From The Founder
The more things change, the more they stay the same for Juniper's next-gen comms solutions, and that's a good thing.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (0) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
LRTV Interviews
AT&T Launches Network Functions on Demand

7|17|16   |   05:26   |   (0) comments


Roman Pacewicz, Senior Vice President, Offer Management & Service Integration, AT&T Business Solutions, discusses the operator's launch of its Network Functions on Demand service.
LRTV Interviews
Enterprise Pitch for Ciscosson

7|14|16   |   04:43   |   (0) comments


After seven months of near silence, Cisco and Ericsson executives publicly discussed details on their extensive partnership. Among the tidbits shared by Martin Zander, VP, group strategy programs, Ericsson, and Doug Webster, VP service provider marketing, Cisco: The partnership was initially launched to serve the service provider market, but is already gaining ...
Wagner’s Ring
Cisco Faces Up to Hypercloud Threat

7|13|16   |   02:42   |   (0) comments


Facebook, Amazon and Google mostly don't buy branded technology for their networks – they build their own. That's a threat to Cisco – and its competitors too – which face potentially dwindling demand for their product. Is Cisco up to the challenge? Light Reading went to the annual Cisco Live conference to find out.
LRTV Huawei Video Resource Center
Building a Better Connected Russia

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Alla Shabelnikova of Ovum shares the findings of a white paper outlining the challenges and opportunities of broadband rollout in Russia.
LRTV Huawei Video Resource Center
The Global Video Business

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Roger Feng of Huawei shares insights on the future of video business.
LRTV Huawei Video Resource Center
UBBS World Tour Moscow Highlights

7|13|16   |     |   (0) comments


At UBBS World Tour 2016 at Moscow, Huawei showcases its outstanding progress in video technology.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
September 27, 2016, Philadelphia, PA
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
SoftBank Muscles In on ARM in $32B Deal
Iain Morris, News Editor, 7/18/2016
Ericsson 'Doubles' Savings Goal as Sales Slump
Iain Morris, News Editor, 7/19/2016
Kevin Lo's Move to Facebook: Sign of Things to Come?
Patrick Donegan, Chief Analyst, Heavy Reading, 7/20/2016
Verizon's Next With VNFs
Carol Wilson, Editor-at-large, 7/21/2016
Facebook Gets Its Drone On
Ray Le Maistre, Editor-in-chief, 7/22/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.