Report says cable companies are jumping in to save WiMax

Michelle Donegan

March 26, 2008

1 Min Read
Cable Rescues US WiMax?

7:45 AM -- Mobile WiMax in the U.S. is ready for a comeback if a report in The Wall Street Journal is true. The WSJ reports that Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), and Bright House Networks are discussing plans to invest $1.6 billion in a new wireless company that would be operated by Sprint Corp. (NYSE: S) and Clearwire LLC (Nasdaq: CLWR) and would blanket the U.S. with WiMax.

Google (Nasdaq: GOOG) and Intel Corp. (Nasdaq: INTC) could also foot some of the bill, according to the report. (See GooMax, Clearwire-Sprint Deal Soon? , Clearwire & Sprint: On Again?, and Clearwire Q4 Drops, WiMax News Doesn't.)

In the reported plan, Comcast would contribute $1 billion, Time Warner would put up $500 million, while Bright House would chip in between $100 million and $200 million.

In total, the companies are looking to raise $3 billion to make the venture work. So, will Google and Intel cough up the rest to make mobile WiMax a reality in the U.S?

If nothing else, the news will make the 4G discussions at the CTIA Wireless show next week in Las Vegas very interesting indeed. (See Verizon Goes LTE and Verizon, Vodafone Head for LTE.)

— Michelle Donegan, European Editor, Unstrung

About the Author(s)

Michelle Donegan

Michelle Donegan is an independent technology writer who has covered the communications industry for the last 20 years on both sides of the Pond. Her career began in Chicago in 1993 when Telephony magazine launched an international title, aptly named Global Telephony. Since then, she has upped sticks (as they say) to the UK and has written for various publications including Communications Week International, Total Telecom and, most recently, Light Reading.  

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