Cellular Network

Sound Off - Industry players discuss the Sprint/Clearwire WiMAX deal

Fri, 09 May 2008 11:49:32 -0400

On May 7 Sprint and Clearwire announced plans to combine their WiMax businesses and create a new company (called Clearwire) with a $3.2 billion investment from Intel, Google, Comcast, Time Warner Cable and others. Here's what members of the wireless industry are saying about the deal. If you would like to weigh in on this deal, answer our poll question here.

"The biggest challenge is getting all these companies that are important participants to agree on the essential value proposition, both from a marketing and distribution standpoint. How will this relate to Sprint, if Sprint remains a standalone wireless company? If Sprint continues to be standalone wireless company as it is today, how do they promote the value proposition of the new WiMAX entity vis-a-vis their own cellular network? What is the value proposition for Sprint if there is Clearwire? That's a key issue. Another issue is defining the essential value proposition of this network, which will essentially be a 4G network built form scratch. If its value proposition is data, this is the first time in the history of the U.S. since Metricom, that we will have a network that is solely for data. Will it be sustainable as a data-only network? I presume you will be able to run VOIP but what does that mean to the Sprint's cellular network? What does that mean for the cable companies that are already offering essentially VOIP service? --Mark Lowenstein, managing director, Mobile Ecosystem.
"This is a big day for WiMAX, and it lends a lot of credibility for us to build our business model. We have always talked about the business model first. We are talking about broadening the chipset system, getting WiMAX into consumer electronics, eliminating subsidies and instituting at-home provisioning so customers don't have to stand in line. Those are all part in parcel to really change the mobile broadband experience in a way it ought to be." --Atish Gude, senior vice president of mobile broadband operations with Xohm.
"The new Clearwire will have a substantial time-to-market advantage over others who just acquired spectrum. Clearwire will have a solid foundation for next-generation products and services. It's the largest spectrum position held by a company in America. It will provide high-capacity services at a low cost." --Dan Hesse, CEO of Sprint, during a conference call about the new venture.
"This will dramatically advance WiMAX. Our expanded relationship with Intel and Google will help fulfill the vision of an open network. We will resell wireless through wholesale arrangements and bring in new wholesale revenue streams." --Ben Wolff, CEO of Clearwire, during a conference call about the new venture.
"The New Clearwire announcement is a much-needed good news story for the WiMAX industry after months of delays, uncertainty and speculation. This is important news not only in the U.S., but internationally. Many greenfield and 2G operators worldwide are closely watching the development (or lack of development) of WiMAX in the U.S. as an indication of the real prospects for 802.16e. Although I don't believe the new Clearwire deployment will reach 100 million POPs as quickly as 2010 (as stated by Clearwire), it will provide the much-needed volumes to the emerging device and application ecosystem upon which WiMAX hopes to distance itself from LTE. It remains to be seen how these diverse players will learn to work together and what will happen to Sprint's 3G + network." --Adlane Fellah, CEO & Founder, MARAVEDIS Inc.
"TBR believes Sprint and Clearwire's May 7 announcement--that the two companies will combine their WiMAX businesses into a single entity--has the potential to establish a significant competitor to the traditional U.S. wireless operators, one with a time-to-market advantage for 4G services. Moreover, the affiliation with cable operators, particularly the nations' two largest cable operators Comcast and Time Warner Cable, helps address questions regarding the business model supporting WiMAX deployment. From an equipment perspective, the announcement provides a vehicle for a number of firms seeking a presence in the next-generation mobile business, firms that had to take a back seat to larger, more established incumbents in 3G deployments. "The deal will provide efficiencies--and funding--to expedite the rollout of the network, providing the new company with a time-to-market advantage by launching a 4G network well before Verizon Wireless' and AT&T's planned LTE launches between 2010 and 2012. TBR expects the combined WiMAX assets of Sprint and Clearwire to produce significant synergies, allowing the companies to provide a nationwide network at a lower cost." --Kate Price, analyst, Technology Business Research.

FEATURE: Sound off - Industry players discuss the Sprint/Clearwire WiMAX deal

Fri, 09 May 2008 06:59:53 -0400

On May 7 Sprint and Clearwire announced plans to combine their WiMax businesses and create a new company (called Clearwire) with a $3.2 billion investment from Intel, Google, Comcast, Time Warner Cable and others. Here's what members of the wireless industry are saying about the deal. If you would like to weigh in on this deal, answer our poll question here.

"The biggest challenge is getting all these companies that are important participants to agree on the essential value proposition, both from a marketing and distribution standpoint. How will this relate to Sprint, if Sprint remains a standalone wireless company? If Sprint continues to be standalone wireless company as it is today, how do they promote the value proposition of the new WiMAX entity vis-a-vis their own cellular network? What is the value proposition for Sprint if there is Clearwire? That's a key issue..." --Mark Lowenstein, managing director, Mobile Ecosystem.

Click here to see more of Mark Lowenstein's thoughts as well as what Atish Gude, Dan Hesse, Ben Wolff, Adlane Fellah and Kate Price have to say about the deal...

Is Comcast planning a wireless network?

Fri, 25 Apr 2008 06:59:59 -0400

Ã‚Â

Is Comcast planning a wireless network?Ã‚Â

GigaOM reported yesterday that cable giant Comcast has hired industry veteran Dave Williams as senior vice president of wireless and technology strategy. Williams, former CTO of Telefonica O2 Europe and former vice president for strategic planning at Cingular Wireless, is a cellular network guy. I can't imagine he would be hired to head up a wireless initiative that doesn't include a network.

Now that Comcast has ended its relationship with Sprint and the Pivot joint venture, perhaps the company is ready to make a serious wireless play. It was rumored earlier this year that Comcast and Time Warner might be contemplating a strategic investment in Sprint's WiMAX network Xohm but so far that hasn't come to fruition and I doubt this type of arrangement would be any more successful than Pivot. We know from history that having multiple companies involved in a venture usually ends up being a train wreck.

As part of the SpectrumCo joint venture (which consists of Comcast, Cox, Time Warner and others), Comcast has access to $2.37 billion of AWS spectrum.

I suspect that now that the cable companies have stopped selling Pivot service, Comcast is getting serious about using that AWS spectrum. And it may even be contemplating buying more spectrum. In yesterday's FierceWireless poll, 28 percent of respondents said that they thought Comcast would make a bid for NextWave's spectrum (click here to see the results).Ã‚Â NextWave announced yesterday that it was putting its U.S. spectrum holdings, which include licenses and lease rights for a total of 4.7 billion MHz/pops of spectrum, on the block.

Ian Olgierson, senior analyst at SNL Kagan, says that he thinks Comcast's hiring of Williams is an indication that the cable industry not only knows that it needs a wireless component but that it also needs to control the economics of that component. Olgierson says that the cable company CTOs used to be upfront about the importance of owning the wireless network. Recently they have been more cagey about that philosophy; however Olgierson suspects that may be less of a policy shift and more of a strategic decision. In other words, they don't want to reveal their wireless plans for competitive reasons.

I suspect Comcast is tired of putting its wireless future in the hands of other operators like Sprint. Perhaps it's concluded that the only way to succeed at wireless is to build a network.Ã‚Â -Sue

T-Mobile USA launches Katalyst for @Home

Mon, 10 Dec 2007 06:59:58 -0500

T-Mobile USA has launched yet another UMA phone for its T-Mobile @Home service: Samsung's t739 Katalyst. The carrier already offers the Nokia 6086 and the BlackBerry Curve 8320 for the fixed-mobile convergence service, but the Katalyst is the first slider phone it has offered for it. The phone also features a 1.3 megapixel camera, Bluetooth and a microSD slot. The phone will retail at $79.99 with a two-year contract.

Hotspot@Home, launched in June, allows T-Mobile customers to connect via the firm's cellular network and its 8,500 WiFi hotspot locations across the country.

For more on T-Mobile's newest UMA handset:
- see this image slideshow of the Katalyst handset
- read this press release

Freedom goes MVNO

Tue, 30 Oct 2007 07:59:55 -0400

A familiar name popped up on the radar screen this morning-Freedom Wireless. According to the poorly written press release, Freedom Wireless, a subsidiary of TMT Capital Corp., has acquired an MVNO "license" to sell cellular voice, data and messaging services in the U.S. and Canada.

The company says it's going to sell GSM service across the largest GSM cellular network in the U.S. (read: AT&T) and via the Rogers network in Canada. The main target for its service, according to the release, is the prepaid cellular, affiliate and non-profit markets. Freedom's services will start at $10 per month and it will offer free cellular-to-cellular calling on the Freedom Wireless network.

Freedom Wireless was also the name of the firm that was involved a long-standing patent battle with prepaid billing provider bcgi. Freedom's founders won the patent in 1994 for technology that can automatically shut down mobile phones that have exceeded usage limits. In July 2006, after years of battling Freedom, bcgi finally settled the dispute by agreeing to pay $55.3 million to the firm.

- see this press release on TMT Capital's plan.
- and this release on Freedom's MVNO plan.

Related Article:
Freedom sues 2 U.S. carriers over 'prepaid' patent Report

T-Mobile may extend VoIP with Hotspot@Home

Mon, 13 Aug 2007 06:59:56 -0400

T-Mobile USA has submitted a wireless router for testing by the FCC, several reports indicate. The extrapolation is that T-Mobile intends to extend its wireless hub and HotSpot VoIP capabilities into a full-fledged VoIP landline service. The router appears to support two landline phones and two cellular phones per unit, according to reports.

Hotspot@Home, launched in June, allows T-Mobile customers to connect via the firm's cellular network and its 8,500 WiFi hotspot locations across the country. T-Mobile offers two HotSpot-compatible handsets--the Samsung t409 and the Nokia 6086. The handsets themselves sense whether or not WiFi is available.

For more:
- CNet provides and excellent overview of T-Mobile's build-up here
- TG Daily provides a perspective on T-Mobile's VoIP strategy here

Related Articles
T-Mobile CEO says wVoIP won't catch on Report

FMC goes commercial, but will it thrive?

Fri, 13 Jul 2007 06:59:59 -0400

FMC goes commercial, but will it thrive?

After many starts and stalls, 2007 is shaping up to be the year of fixed mobile convergence. In fact, this summer we've seen two U.S. operators dip into the FMC pool and launch services. And it's likely that others will follow suit if these two early innovators find success with their offerings.

Regional operator Cincinnati Bell Wireless launched its CB Home Run package in June. CB Home Run lets subscribers make wireless calls via the firm's cellular network and via WiFi in their homes and offices and at the company's more than 300 WiFi hotspots. Cincinnati Bell is charging $60 for the Nokia 6086 UMA-based handset with a $15 rebate, and existing customers can add the CB Home Run service for just $10 per month.

On a much larger scale, T-Mobile USA launched its HotSpot@Home service in late June. The service lets customers connect via the firm's cellular network and its 8,500 WiFi hotspot locations across the country. T-Mobile offers two HotSpot-compatible handsets--the Samsung t409 and the Nokia 6086. Each phone costs $49.99 with a two-year contract. To provide an incentive to users to sign up for the plan, T-Mobile is letting existing customers add the service for $9.99 per month for a single line and $19.99 per month for up to five lines for customers on a family plan.

While I commend Cincinnati Bell and T-Mobile for launching FMC at attractive price points ($10 per month for an individual/$20 per month for a family plan), I hope they rapidly add more handsets to their offerings. We know from history that the lack of compelling FMC handsets can limit growth. As we reported back in March, Deutsche Telekom canceled its FMC service called T-One. While the company claimed the cancellation was because it wanted to focus on its mobile Internet services, many industry insiders reported that the real reason the service failed to take off was because it was poorly marketed and lacked a compelling line up of handsets.

Current Analysis analyst William Ho, while slightly bullish on T-Mobile's HotSpot@Home offering, also urges T-Mobile to increase its FMC handset portfolio. In a research note, Ho says "although the launch devices are priced well, the limited selection of two relative to the entire T-Mobile handset portfolio forces a user to make a tradeoff between fashion and functionality (e.g. RAZR, Sidekick, Pearl) for voice value."

To hear more about the FMC debate, tune into the FierceWireless Webinar "FMC Progress Report" on July 17 at noon EST. I'll be moderating the Webinar and my guests include ABI Wireless Research Director Stuart Carlaw, Tango Networks COO Alastair Westgarth and Evan Miller, IT operations strategy director at Texas Instruments. Click here to register. -Sue