& cplSiteName &

Clearwire: We'll Kick LTE's Butt

Ray Le Maistre
LR Mobile News Analysis
Ray Le Maistre, Editor-in-chief
5/7/2008
50%
50%

There are two things the new Sprint Corp. (NYSE: S)/ Clearwire LLC (Nasdaq: CLWR) WiMax company won't be short of: spectrum and confidence. (See Sprint, Clearwire Create $14.5B WiMax Giant.)

On a conference call today announcing the planned new independent WiMax operator, Sprint CEO Dan Hesse boasted that the new company, with Sprint's and Clearwire's 2.5 GHz spectrum combined, will have a "national footprint" and "the largest spectrum position of any company in the U.S." -- which will leave those mobile operators planning LTE networks playing catchup in the mobile broadband services market.

He added that, because both Sprint and Clearwire have been working for some time towards WiMax service rollouts, the new company, due to be officially formed in the fourth quarter of this year, will be "at least two years ahead of the competition... We have a substantial time-to-market advantage over others who have only just got their 4G spectrum."

That "competition" is AT&T Inc. (NYSE: T) and Verizon Wireless , which recently landed their 4G spectrum and plan to build out networks using LTE (long term evolution), the technology many current 3G mobile operators are planning to deploy from 2010 onwards. (See AT&T & Verizon to Use 700 MHz for 4G .)

While that's some years ahead, both Sprint and Clearwire are believed to be within months of (independently) launching WiMax services. "We can realize [4G services] now rather than years down the road," boasted Hesse, perhaps somewhat prematurely, given Sprint's history of missed Wimax launch deadlines. (See XOHM May Launch This Summer.)

Clearwire has been putting its planned WiMax offering through its paces in Portland, Ore., where, according to Clearwire's CEO Ben Wolff (who will head up the new WiMax venture), the company has been achieving up to 6 Mbit/s downstream and up to 3 Mbit/s upstream in vehicles traveling at 60 miles per hour.

"Based on our experience in Portland, we'll be able to exceed anything that the legacy mobile networks can offer. We aim to provide four times the performance at one tenth of the cost of the legacy wireless networks," stated Wolff, though he didn't comment on how competitive the prices would be.

And Barry West, Sprint's CTO and Clearwire president-elect, believes it will be a long time before LTE is ready to make a true 4G challenge to Wimax. "We expect to see only early trials of LTE in 2010 -- it'll take a lot longer" to get a full network and services up and running, carped West, who, as the video below shows, is keen to press home WiMax's 4G credentials.

Putting Clearwire's plans into action
Now the new company, along with its backers, will start fleshing out its WiMax rollout plans. The "new" Clearwire will have a $3.2 billion purse courtesy of its five strategic investors -- Google (Nasdaq: GOOG), Intel Corp. (Nasdaq: INTC) (through Intel Capital ), and three cable operators, Bright House Networks , Comcast Corp. (Nasdaq: CMCSA, CMCSK), and Time Warner Cable Inc. (NYSE: TWC) -- plus whatever cash Clearwire has when the company is finally formed.

Even with the efficiencies that'll come from the new carrier's relationship with majority shareholder Sprint, which will provide collocation at cell tower sites at preferential rates, IT support, IP transport capacity, and an enterprise-focused sales team, that initial cash pile will likely be used up by mid-2010, by which time Clearwire hopes to have 110 million people covered with its WiMax service.

As a result, Sprint and Clearwire believe the new Clearwire will need further funding of between $2 billion and $2.3 billion, which it will seek "opportunistically" from the capital markets as needed.

If all goes to plan, that would enable the company to fund its initial buildout, which it sees covering up to 140 million people by the end of 2010 and, ultimately, more than 200 million U.S. citizens after that.

That's a plan that will come under intense scrutiny, given Sprint's previous WiMax coverage timelines: In August 2007 it said it would have 19 markets covered with WiMax services by the end of April 2008, and have 100 million within service range by the end of 2008, yet the operator is yet to declare the service available. (See Sprint & Samsung in NYC WiMax Push.)

In the meantime, Sprint has other issues to contend with, including speculation about potential takeover offers and the future of its iDEN network. (See Sprint: 4G & M&A Still Unclear and Sprint 'Committed' to iDEN .)

— Ray Le Maistre, International News Editor, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
wap545
50%
50%
wap545,
User Rank: Light Beer
12/5/2012 | 3:41:20 PM
re: Clearwire: We'll Kick LTE's Butt
Until the new Clearwire deploys a AWS or a White Space based WiMAX network Verizon Wireless LTE network, when deployed, will effectively put them out of business. LTE and 700Mhz will allow VW and AT&T to provide universal true 4G type coverage nationwide.
The New Clearwire will focus on major Metro/Urban markets where they can leverage the Multipath nature of OFDM-Rural will come later if ever in 2.5Ghz..
Nobody is talking about the limitation any Wireless Network based on 2.5Ghz network will have with the absorbtion properties of Foliage in a serious carrier grade Wireless Nationwide network, especially in Rural markets.
Sprint has always focused its Cell (EV-DO) network in major Urban markets and left much of the coverage lacking in Rural areas other then the desert far West.

These folks are using 2.5Ghz because they own it Nationwide and want to get a network underway ASAP, which makes a great deal of financial near term sense.
Intel and the MSO will eventually influence the major players (Sprint and Clearwire) to move off of 2.5Ghz ASAP. The MSO have a great deal of AWS Spectrum that would work nicely with WiMAX and there are many spectrum owners with AWS that would be willing to work with (Partner) the New Clearwire nationwide.
Some one need to ask Intel, on the record, how long it would take them to deploy a AWS, 700Mhz or even White Space based Centrino product for WiMAX.

Jim (aka Jacomo)
lrmobile_jepovic
50%
50%
lrmobile_jepovic,
User Rank: Light Beer
12/5/2012 | 3:41:16 PM
re: Clearwire: We'll Kick LTE's Butt
At 2.5 Ghz, it's practically line-of-sight to get the bandwidths that Clearwire predict. Plus outside antenna, etc. The laws of physics do apply to Wimax as well.

One could add that LTE will have a huge advantage in terms of terminals. Laptops will surely handle both, but I doubt there will be much interest from the vendors in creating handsets for such a marginal market.

Clearwire will compete from day one with the Wifi & fixed broadband (DSL or cable) combo that most people use today, plus the HSDPA services. They will get 2 years time before LTE arrives, if they can convert slideware into services.

And that's the US, where the spectrum allocation is in Wimax's favor. In other countries, where HSPA is already widespread and the spectrum allocation is less favourable, mobile Wimax has absolutely no chance.

So yes, mobile Wimax is the new CDMA. Except I think it will peak at 2% rather than 20% global market share.
freetoair
50%
50%
freetoair,
User Rank: Light Beer
12/5/2012 | 3:41:16 PM
re: Clearwire: We'll Kick LTE's Butt
The comparison with LTE has gotten ahead of itself. Theory is one thing - reality is another.

Frankly HSPA is kicking WiMAX's butt right now in terms of subscriber reach and is / will be shown to be competitive with WiMAX in terms of throughput. Show me some real-world, loaded system results for WiMAX .16e? Not there. But it is pretty clear for HSPA.

Verizon/ATT will continue to grow. At least Sprint got XOHM off thier balance sheet (apparently). But now what?

As for Clearwire - big mountain to climb.
Look at Korea for example...KTF HSPA nationwide, KT WiBro in part of Seoul. KTF has millions of subs on HSPA while KT WiBro has a ~150k subs. Upgrade to HSPDA did not require any need site buildouts. Wibro is all new sites.

So Clearwire will spend $B to build out network 2.5GHz - meanwhile HSPA contniues and as Jacomo points out 700MHz is available in the future.

Got to hand it to Intel -- they are the "Hillary" of WiMAX. But at some point you have to face reality.
freetoair
50%
50%
freetoair,
User Rank: Light Beer
12/5/2012 | 3:41:15 PM
re: Clearwire: We'll Kick LTE's Butt
well said.
AllKindsOfThings
50%
50%
AllKindsOfThings,
User Rank: Light Beer
12/5/2012 | 3:40:57 PM
re: Clearwire: We'll Kick LTE's Butt
... ah - thanks. I aways wanted to know where the terminology "hllarious" came from ;-)

Clearwire, Nextel and even Intel might be confronted with the results of overly succesfull marketing. They might have put somewhat more on the plate than they can swallow.

Being Icons for their respective US markets does even stand in the way to undersztand that several key proportions of the global market are not today and will also not for the foreseable time be defined by a US centric approaches.
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
The Real-World View of Service Provider Innovation
Executives from Deutsch Telekom, Facebook, AT&T, Vodafone, and Masergy share insights from their company’s major transformation efforts and updates on key issues including open source, managed cloud connections and 5G.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
LRTV Huawei Video Resource Center
European 2020 Digital Agenda

5|12|16   |     |   (0) comments


Anacom's Fatima Barros discusses the plan to bring ultrafast broadband to Portugal by 2020.
Upcoming Live Events
May 24-25, 2016, Austin Convention Center, Austin, TX
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
Nokia Plays It Smart With Major Mobile Devices Brand Deal
Iain Morris, News Editor, 5/18/2016
Eurobites: Be More European, EU Tells Streaming Services
Paul Rainford, Assistant Editor, Europe, 5/20/2016
Google Doubles Down on Machine Learning, AI
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/19/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
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.