Equipment
Perhaps the most important announcement from Clearwire on their earnings call yesterday (at least to those of us who covet speeds faster than a roadrunner on heroin) was the trumpeting of their upcoming bout of LTE trials. The trials are slated to go live in Phoenix in the fall of this year – which is INDEED right around the corner. This begs many questions from those of us who have some knowledge of wireless broadband, engineering principles and commercial deployment intangibles. Lucky for those of us nerds, as well as the crowd here, Dr. John Saw, the Chief Technology officer of Clearwire, was able to share a lot of knowledge in a press release just following the earnings call. Clearwire plans on offering LTE speeds in the real world range of 20-70 Mbps! That is much faster than the 5-12Mbps that Verizon Wireless has announced it will operate its LTE network. Not only will Clearwire offer a faster LTE network, it also plans to test the possibility of a dual WiMAX/LTE network for optimal end user performance, both on the receiving end as well as the backhaul. So what does this all mean? If you decide to read ahead, you will find out plenty about how it all works, and why Clearwire may well be poised to deliver some serious competition in the mobile broadband market.
Remember the days of pulling out your cell phone antenna, standing on one foot and doing all but a dance and jig to potentially catch a cell phone signal from somewhere in the air? As any of us can remember, coverage was something not taken for granted, and the use of the mobile device was sweet indeed. Fast forward a decade or so and the two largest carriers hired their actors and producers to poke and prod at each other’s “maps” with one boasting the other was garbage and the other claiming the latter was a lying jerk. My point here is that those days – at least for a few seasons – are through:
“In a 4G world, wireless coverage is important, but capacity is KING. This capacity is a unique and sustainable advantage for Clearwire, thanks to our all-IP network and unmatched spectrum holdings.”
More on the spectrum holdings in a moment – but let’s talk about the capacity that they’ve been touting. I’m
Posting a quarterly adjusted EBITDA loss of $363.2 million net loss of $125.9 million revenues up almost 100% year over year of $123 Million.
2Q total net subscriber adds of 722,000, of which 595,000 were WHOLESALE customers (from Sprint, Comcast, Time Warner, etc) 2Q ending total subscribers of 1.7 million, up 231% YOY Retail churn listed at 3.2% nationwide POP penetration in maturing markets (Atlanta, Law Vegas and Portland) of 3.2%, up from 2.7% in 1Q 2010
“I get a lot of questions about Clearwire and about Sprint’s network RFP. On the topic of Clearwire, we have an advantage in the aligned ownership interests we share with the cable partners, Intel and Google and we benefit from the many contributions they have brought to the table and we benefit from the resale of 4G services… As in the past, any strategic or funding decisions about Clearwire must be a collective decision among the strategic investors and the Clearwire Board. Beyond that, we are not going to comment on the ongoing media speculation.”
“This agreement paves the way to providing one-stop shopping and support for mobile broadband as more people become more connected across all kinds of devices,”
Consumers expect a high speed connection between 100Mb /s and 1Gb/s, contrary to 3G which does not exceed 14.4 Mb/s. Two technologies with this capability are in competition: WiMAX (Worldwide Interoperability for Microwave Access) and LTE (Long Term Evolution).
LTE is considered by many to be the obvious successor to current-generation 3G technologies. LTE’s promise of high-speed, two-way wireless data promises an “all-IP” mode of communication in which voice calls are handled via VoIP. It’s also designed to handle video and to permit roaming through multiple systems–from cellular to Wi-Fi and satellite. The LTE solution is supported by AT&T and Verizon and should be implemented by the end of 2010. However, LTE still remains slower than Wimax and tests show that the infrastructure is not mature enough, and will need about 2 more years to be completely efficient.
The other technology called WiMAX, developed by Sprint and Clearwire is already available as a type of broad-base Wi-Fi. More than 450 tests are on-going to deliver high-speed connections to cell phones and landline devices in more than 135 countries like Kenya, Russia, Bulgaria, Netherlands, India, Denmark, Japan and the US. The Wimax advantages are threefold: it can be spread in remote areas such as emerging countries; the technology is operational and functions with any device integrated with a Wimax chip; and it solves roaming problems. Despite these advantages and the anticipation over 4G, Sprint and Clearwire are not leaders of the U.S wireless carriers market. Indeed, LTE has a better popularity rating than Wimax, and neither Sprint nor Clearwire has enough money to challenge Verizon and AT&T.
While US carriers wrestle with these options, one wonders if a marriage between the two technologies would be a better alternative. WiMAX, which is already available and updated, could be implemented initially, allowing time to improve the LTE infrastructure. Thus, consumers can experience the superior performance of LTE without losing connectivity in the mean time. Accordingly, it seems that WiMAX and LTE are more complementary than rivals.… Read the rest
Let us do a quick review of a typical WiMAX network architecture: Essentially, the MS (member station)/SS (subscriber station) is on one side, and the BS (base station), ASN (Access Service Network) Gateway, CSN (Connectivity Service Network: HA(home agent), AAA, etc.) is on the other side. Please remember the following common interface terminologies: the air-interface between the MS to BS is termed R1, the interface between MS to CSN is R2, BS to ASN is R6, ASN to CSN is R3, ASN to another ASN is R4 and CSN to another operator’s CSN is R5. Next, we provide a simplistic summary of the network entry and initialization process: Phase a) the MS scans the DL channel and synchronizes with the BS, Phase b) transmit parameters are obtained, Phase c)
Verizon, AT&T, and Sprint are the companies leading the way for this new product. They exude confidence during technology fairs concluding that the 4G revolution is upon us. They’ve developed products to help connect to the network such as portable modems, usb drives, and sim cards. They’ve even entitled their networks; Sprint’s being WIMAX (World-wide Interoperability for Microwave Access) while Verizon and AT&T’s shall be called LTE (Long Term Evolution). However, perhaps their confidence is missed guided and their promise of debuting in 2013 is unrealistic.
WIMAX developed by the Sprint and Clear companies respectively, seems to be losing ground in the United States amidst their attempt to bring WIMAX success domestically. Though they’ve raised 3.2 billion dollars in investments to produce the network, Sprint and Clear may have underestimated how expensive it is to blanket the country in connectivity. Sprint, the lesser of the three major telecommunications distributors in the country, may not have enough currency to continue production if the 3.2 billion isn’t enough, and investors Google, Time Warner, and Intel may grow weary of waiting and pull their investments early. Also those dependent on their WIMAX’s success is far less than those who are dependent on LTE”s success due to the fact that Verizon and AT&T are far larger companies. … Read the rest
In the Telecommunications Act of 1996, Congress codified the FCC’s distinction between “telecommunications services” used to transmit information and “information services” that run over the network. The FCC later eliminated the regulatory asymmetry between cable companies and other broadband Internet service providers by extending the information service classification to broadband Internet services offered over DSL and other wireline facilities, power lines, and wireless. Today broadband Internet service may be offered as an information service subject to consumer protection, network reliability, and national security laws, rules and regulations, but largely exempt from Title II telecommunications service regulation.
Expressing its resolve to further broadband deployment, Congress recently passed
1) the 2008 Farm Bill directing the FCC to submit to Congress “a comprehensive rural broadband strategy,
2) the Broadband Data Improvement Act to improve data collection and “promote the deployment of affordable broadband services to all parts of the Nation”, and
3) the Recovery Act, which appropriated up to $7.2 billion for broadband services deployment, and required the FCC to develop the National Broadband Plan.
In the last decade, technological advances have become a necessity rather than a luxury for today’s American consumers and businesses. As a society we are always in demand of something new, something faster, something that will change our lives even if it means paying a little extra for the service. When turning on the television, commercials rule the airwaves using various techniques to coerce us into buying their product or at least implant a little annoying seed that unconsciously has us repeating the commercial slogan. An example of this would be the Optimum Triple Play Package advertisement, which uses corny rap and rock songs that are catchy, and I confess, are imbedded in my memory due to it’s continuous broadcasting during football games and practically all of television. Verizon and Apple use a compare and contrast technique, which subtly imply that they have a better product than their competing companies as seen from the “Can you Hear Me Now”, and the “Mac vs. P.C” commercials. These companies have been the pioneers of 21st century advertisement, and I’d bet money that most people have seen their commercials and/or own their product or service. With such marketing maneuvers it is no surprise that these companies are leading the industry with their respective product.
So with that said, has anyone ever heard of WiMAX or Clearwire? At first glance, it sounds like a bootleg version of Wi-Fi and water bottle brand, but it’s not, it’s an up and coming technology and company that will change the way the public connects to the internet. Want proof? Well how about 3.2 billion dollars of proof? Google, Time Warner Cable, and Intel have agreed to produce that amount in support of the Sprint’s Clearwire Company and the WiMAX product with hopes that it will unlock its 4G potential and make its mark on today’s market. WiMAX has the potential to cover entire cities with connections and works just like a portable modem, meaning you can be anywhere in the city and have access to the internet. WiMAX mean’s no restrictions; you can reconnect with society anywhere you go, it means you can say goodbye to hunting for coffee shops that have free internet access, or even paying 2.99 for three hours use of internet at Barnes and Nobles. WiMAX offers an option of a faster Internet with a stronger connection, so why in the world isn’t … Read the rest
