Recessions hurt.

We’ve previously noted that decision-makers at many of the technology industry’s leading corporations seem to have a lot of faith in WiMAX, specifically in Clearwire’s United States venture. The catch is that the market does not share their optimism.

Intel’s losses after acquiring Clearwire now total $1.1 billion to $1.2 billion – significantly more than the previous estimate of $50 million. Meanwhile, Nokia is pulling the plug on WiMAX-enabled mobile devices designed specifically to work with Clearwire’s networks. At present, it’s a sensible strategy for Nokia, because mass sales of WiMAX products can not become a reality until Clearwire manages to roll out its offerings to a greater number of markets. But this could be a case of a double bind. Manufacturers like Nokia depend on the success of Clearwire before they can profit from WiMAX-equipped mobile devices, but Clearwire will have a harder time attracting customers in the absence of those devices. To borrow an old cliché, WiMAX technology seems to be taking one step forward and two steps back – at least for the time being.

But how likely is it that this currently sticky situation will kill off WiMAX development in the United States, as some have suggested? The survival of WiMAX depends, like all new ventures, on the future health of the economy, and it is difficult to predict how much longer it will take for the skies to clear. But ultimately, metropolitan WiMAX is still a good idea. There are even indications from Clearwire – at the moment, a mighty burden on the shoulders of Intel – that its offerings will eventually flourish. “Clear,” the company’s 4G WiMAX broadband service, will launch in Portland this year. Of course there will be no fancy Nokia tablets on the market to woo Oregonians with a variety of mobile options – though Intel Centrino 2 notebooks with embedded WiMAX will be out within the year – but residential users can still lease 4G modems from Motorola for a whopping $4.99 a month, or buy mobile USB modems at $49.99 each. Basic access to the 4G network then costs $20 to $30 a month. (Prices increase with greater usage.) That’s cheaper than most basic mobile plans by major cellular service providers, and comparable to the cost of residential high-speed Internet access. With analysts predicting that Clearwire will reach nine markets in total in 2009, and with low-to-average pricing for cash-conscious end users, WiMAX technology could soon break out of its current doldrums. As VentureBeat blogger Andrew Ha points out, it’s just too soon after the final merger approval to write off Clearwire’s efforts entirely.

Recessions hurt. But sometimes, an economic downturn can be the best time to launch a business. Clearwire has the ability to use this climate to its advantage. It’s a tough time for companies invested in WiMAX, but predictions of doom and gloom are simply premature.

In 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.