Wireless Wars

The announcement that Sprint and Clearwire will create a new company, named Clearwire by merging their next-generation wireless broadband networks is a significant step towards creating a high speed mobile WiMax network. The vision is that all of our devices, including phones, Blackberries, laptops and whatever gets invented, will be on a high speed wireless network. The question has been who will construct this network and who will get paid for its use. Many companies are involved.

But who's not involved? Microsoft, Verizon and AT&T. Sprint was the natural leader in this effort, but has been derailed from its commitment by financial difficulties. Clearwire is a next natural step in that it is an innovator in the space. Intel has committed $1 billion so that its chips are fit for the devices developed to access this network. Google has committed $500 million so that its software is the main platform utilized. The cable companies, Comcast and Time Warner, have committed $1.5 billion so that their content and delivery systems coordinate with the WiMax network.

An issue is that competition that will exist between the emerging Clearwire and a cable provider. Current users of the Internet through cable appear to have a likely choice: Clearwire everywhere access or the local modem at home through the cable company. Obviously, the cable companies hope to roll this wireless service into their package of services to prevent a similar strategy from the telephone companies.