Clearwire financial backer Comcast will repackage Clearwire's WiMax service in Portland, Ore. With $1 billion invested in Clearwire, Comcast hopes to use the WiMax carrier's first-to-market 4G wireless broadband to grab a share of the mobile data market.WiMax carrier
Clearwire's financially shaky plans to build a nationwide wireless 4G broadband
network will receive a boost this summer, with cable giant Comcast planning to
buy Clearwire's Portland, Ore., service at wholesale
prices and repackage it into a Comcast-branded product. Comcast has already
invested $1 billion in Clearwire.
The wholesale deal
was established when Comcast invested in Clearwire as part of last year's $14.5 billion
merger between Clearwire and Sprint Nextel's Xohm WiMax division. In
addition to Comcast's investment, the merger deal also included a combined $2.2
billion investment by Intel, Time Warner Cable, Google and Bright House
Networks.
"We are very interested in being able to offer a wireless component to our
products," Comcast Chief Operating Officer Stephen Burke told the Portland Oregonian March 14.
Clearwire is racing to establish the first nationwide 4G network, betting the
farm on WiMax technology. Verizon Wireless and AT&T, the nation's two
largest wireless carriers, are counting on LTE for their 4G technology. With WiMax networks already established in Baltimore and
Portland, Clearwire said March 5 it plans to roll out 4G WiMax networks in
eight metropolitan areas in 2009 and add at least another four markets in 2010.
As for the wholesale deal with Comcast, Clearwire Chief Operating Officer Perry
Satterlee told the Oregonian, "Whether it comes through a retail
channel or comes through a wholesaler, in the end, Clearwire wins. It's
customers on our network."
Clearwire hopes to cover up to 120 million people in approximately 80
markets
by 2010. WiMax rollouts for 2009 include Atlanta; Las Vegas; Chicago;
Charlotte, N.C.; Dallas/Fort Worth; Honolulu; Philadelphia; and
Seattle. Cities on the 2010 buildout
board include New York, Washington, D.C., Boston and San Francisco.
Verizon Wireless said Feb. 18 it will be testing LTE in
U.S. cities in 2009, followed by an aggressive rollout in 2010. Nokia, the
world's largest cell phone maker, has already committed to a major LTE push and
March 5 referred to WiMax as a niche play.
WiMax's 4G technology allows for the delivery of
last-mile wireless broadband access. WiMax promises faster download speeds than
current cellular networks and has the potential to be a competitor to
fixed-line broadband such as DSL. For cable companies such as
Comcast and Time Warner, the investment opens the door to offer bundles of
service including wireless broadband to compete with AT&T and Verizon.
Clearwire says the new WiMax network will be open to
all legal devices and services, including Google's Android platform. Intel will
supply networking gear and software for the new network.