On May 7, 2008, Sprint, Imagine, Google, Intel, Comcast, and Time Warner announced a pooling of an average of 120 MHz of spectrum and formation of a new company which will take the name Clearwire. The new company hopes to benefit from combined services offerings and network resources as a springboard past its competitors. The cable companies will provide media services to other partners while gaining access to the wireless network as a Mobile virtual network operator. Google will contribute Android handset device development and applications and will receive revenue share for advertising and other services they provide. Clearwire Sprint and current Clearwire gain a majority stock ownership in the new venture and ability to access between the new Clearwire and Sprint 3G networks. Some details remain unclear including how soon and in what form announced multi-mode WiMAX and 3G EV-DO devices will be available. This raises questions that arise for availability of competitive chips that require licensing of Qualcomm’s IPR.
Some analysts have questioned how the deal will work out: Although fixed-mobile convergence has been a recognized factor in the industry, prior attempts to form partnerships among wireless and cable companies have generally failed to lead to significant benefits to the participants. Other analysts point out that as wireless progresses to higher bandwidth, it inevitably competes more directly with cable and DSL, thrusting competitors into bed together. Also, as wireless broadband networks grow denser and usage habits shift, the need for increased backhaul and media service will accelerate, therefore the opportunity to leverage cable assets is expected to increase.
