Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • Development
    • Mobile

    Google’s $500M WiMax Bet

    By
    Clint Boulton
    -
    May 12, 2008
    Share
    Facebook
    Twitter
    Linkedin

      Analysts are bullish on Google’s $500 million investment in and agreement to become a key search, ad and applications provider for both Sprint and Clearwire, which opened a new beachhead May 7 on the elusive island of speedy Internet known as WiMax.

      WiMax, which pipes data at up to 70M bps to an area that covers up to 30 miles, has been praised as a technology but has struggled to find widespread traction. Clearwire, with backing of Sprint Nextel, Google and others, plans to change that.

      Google will become the default search provider and preferred application provider for Clearwire’s new retail product and the default provider of Web and local search for mobile phones from Sprint, which will preload Google Maps for Mobile, Gmail and YouTube.

      Moreover, Google’s Android mobile operating system could get a bump from the deal, with Clearwire offering Android on its voice and data devices down the road.

      The possible Android tie suggests that Google may finally have a fine launching point for its mobile operating system, which has weathered criticism and doubt by skeptics who argued that the world doesn’t need another mobile platform, even if it is open source. Yet analysts have said the search, ad and application ties are what make this deal hum for Google.

      “Google’s interest is much more about being the primary search (and, likely, advertising) provider on this network. Android will only make up a small portion of the devices on the network,” Forrester Research analyst Charles Golvin told eWEEK.

      Google in the WiMax driver’s seat

      IDC analyst Caroline Dangson wrote in a May 9 research note that the pact puts Google in a position to own the majority of Internet searches from WiMax-enabled mobile devices in the United States.

      Consider that one third of U.S. Internet users are already using their mobile phones to access the Internet, with a quarter of these users conducting Internet searches through Yahoo, Google, MSN or another search engine.

      While Google.com reigns in desktop search, the company is second to Yahoo in mobile search, with 25 percent of U.S. mobile Internet users accessing Google versus 29 percent accessing Yahoo, according to IDC.

      “The WiMax deal could change this by 2010 when the Clearwire WiMax network is expected to cover 120 million to 140 million people in the United States,” Dangson wrote. Moreover, with Internet search advertising accounting for 98 percent or so of Google’s sales, Google will gain access to millions of mobile WiMax users as the default search engine for Clearwire.

      This will lead to millions in mobile Internet advertising dollars, which IDC estimated was $50 million in 2007 and should grow to more than $500 million in 2011, she wrote.

      Pair these stats with Google’s existing paid search links and new mobile brand display ads and Google should see the return of the $500 million it invested in the Sprint-Clearwire WiMax deal within the next five years, Dangson said.

      Perhaps, but Google is also banking on Clearwire, which, although it has the complete backing of Sprint Nextel, will have its hands full in a wireless market that includes Verizon, AT&T and other service providers. Google’s investment, along with capital from Intel, Time Warner Cable and others, will aid but not guarantee success.

      Clint Boulton
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×