Volume Control

3/28/2008 8:00 PM Eastern

Too Much Cost For a Lost Cause

“WiMax is going nowhere fast but that is not stopping a consortium of cable and tech companies from considering a plan to invest $3 billion more into a proposed bailout-through-merger of Sprint Nextel’s WiMax business (known as Xohm) and Craig McCaw’s Clearwire … WiMax is a promising technology and these are early days. But even an extra $3 billion won’t be enough. Building out a nationwide WiMax network could cost as much as $8 billion to $12 billion.”

Erick Schonfeld, TechCrunch

Telcos Loom in Rearview Mirror

“So why make a deal now? Because AT&T and Verizon just spent billions of dollars on spectrum in the FCC’s latest wireless auction, which they’ll use in a few years to power faster, next-gen mobile networks. Both telcos will use a different wireless technology than WiMax to power their networks, setting up a potential format war. So Sprint and Clearwire — and the cable companies — need to act fast to establish a lead.”

Dan Frommer, Silicon Valley Insider

Cable’s GPS For Wireless

“What’s really interesting is that Comcast and Time Warner have seemed insecure about their abilities to navigate the wireless sector. A bold consortium to revive the nearly moribund WiMax business (at least in the U.S.) could be a sign of a serious shift of strategic thinking for the top two operators.”

Cynthia Brumfield, IP Democracy

But What Does It Mean to Me?

“Expansion of WiMax and/or Clearwire would benefit consumers because it would mean that your Internet service isn’t confined to your home. And it could drive prices down.”

Etan Horowitz, The Orlando Sentinel

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