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Clearwire’s WiMAX Tests: Acquirement of IDT’s Spectrum

IDT - Clearwire's WiMAX Tests: Acquirement of IDT's SpectrumThe Sprint-Clearwire deal gave Clearwire undeniable credibility in WiMAX development, and the company is moving forward with the technology in a big way. Beta tests are underway in Portland, with “more than 70 percent of [the] WiMAX sites for Portland…in construction or on air.” Completion is slated for the end of year, with commercial deployments in that city and 3 others in 2009.

But now they have more than just the hardware; as of July 2nd, Clearwire has leased 3 one-year licenses on the 39 GHz spectrum from IDT Spectrum, 2 of which are in the Oregon-Washington area. You may not have heard much about IDT Spectrum recently, but expect to hear the name much in the near future; they own spectrums nationwide, mostly in the 28 and 38/39 GHz range. As we come upon the dawning age of wireless, the value of spectrum cannot be understated: you need spectrum to do anything wireless–especially for WiMAX, which is contentionless. (That means it can only operate on licensed spectrum because it is built to assume the air is clear. If it isn’t, the equipment just doesn’t work! ). Naturally, some companies are trying to develop equipment to change that, but for now, that is the nature of most WiMAX equipment. Those who bought spectrum when a majority of it was auctioned off by the FCC in the 80s are finally seeing their investment bear fruit, whether they intend to lease or sell –  remember the 700MHz auction earlier this year, which grossed a total of $19 billion?

So Clearwire has hardware, spectrum, and is well underway in deployment; what’s to follow ? If all goes well, 2009 will see Las Vegas, Grand Rapids, Atlanta, and Portland commercial launches as the first four commercial markets for Clearwire’s WiMAX service, primed to follow at the heels of the Xohm launches in Baltimore, Chicago, and Washington D.C. in the fall of this year. The start of the WiMAX nationwide buildout is only months away.

Sprint Could Possibly Harm Sirius and XM

Sirius XM Merger - Sprint Could Possibly Harm Sirius and XMIn spite of the failed partnership with Clearwire and their current financial strain, Sprint expects to launch Xohm as planned. We could be experiencing a wireless broadband network from Sprint in several major cities, such as Chicago and Washington DC, as early as spring of this year.

According to the LA Times, Sprint’s Chief Executive Dan Hesse is convinced that WiMAX is the way to go even though Sprint’s bigger competitors Verizon and AT&T have disregarded WIMAX in favor of another 4G network known as LTE (Long Term Evolution). LTE is a project in the 3GPP (Third Generation Partnership Project) and is an easier progression from our current wireless networks. While some are concerned that the industry’s two largest carriers are not backing WiMAX, Google, Comcast, and Time Warner are rumored to be jumping on the WiMAX bandwagon. Not to mention, WiMAX was the big buzz word at the CTIA Wireless show in Las Vegas. On Tuesday, Nokia presented its most updated version of N180 Internet Tablet, a WiMAX device projected to run on Sprint’s Xohm network. Motorola displayed a WiMAX enabled car with music, video, and data mapping streaming wirelessly from temporary WiMAX towers placed in the city. All of the hype and optimism surrounding WiMAX is great news for Sprint but may be bad news for Sirius and XM satellite radio.

Sirius and XM have just received the long awaited approval from the Department of Justice for the Sirius XM merger that was first announced back in February of 2007. The merger would double their customer base making it much easier to cover fixed costs. Sirius and XM are also hoping that the merger will help ease the highly competitive environment so acquisition and marketing spending can be lowered. However, with the development of WiMAX, Sirius and XM will face competition from Internet radio which could be streamed wirelessly into cars or mobile phones. Sirius and XM have more than just the pending approval from the FCC to worry about.