& cplSiteName &

Clearwire: We'll Kick LTE's Butt

Ray Le Maistre
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
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
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
The Urgency of Commercial 5G Services

4|26|17   |     |   (0) comments


The progress of 5G has been closely monitored in the industry. At the 2017 Brooklyn 5G Summit, the sense of urgency for a commercial 5G launch had started to surface among operators.
Women in Comms Introduction Videos
How Diversity Helps Comcast Mirror Its Customer Base

4|26|17   |   2:55   |   (0) comments


Diversity brings innovation, creative ideas and a way to reflect the broad spectrum of your customer base, Comcast Director of Customer Experience Jenelle Champlin says.
LRTV Huawei Video Resource Center
Mobile Operators & Video

4|25|17   |     |   (0) comments


Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom, for a discussion of what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Surprise! AT&T Markets 4G Advances as '5G Evolution'
Dan Jones, Mobile Editor, 4/25/2017
Did Verizon Outbid AT&T for Straight Path?
Dan Jones, Mobile Editor, 4/25/2017
First Year TIPs the Scale Toward Success
Denise Culver, 4/24/2017
Netflix Set to Enter China
Mari Silbey, Senior Editor, Cable/Video, 4/25/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.