| Wireless broadband upstart Clearwire has a new $900 million investment from Intel and Motorola and plans to participate in the FCC auction of Advanced Wireless Services licenses. In this report, we examine the evolution of Clearwire, its market deployments, and its spectrum, sales and VoIP rollout strategies. We also explore the possibility of Clearwire allying with DirecTV and EchoStar. Included are 15 tables and charts.
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SPECTRUM STRATEGY
MARKET DEPLOYMENTS
SERVICES
SUBSCRIBERS
MARKETING, SALES & CUSTOMER SERVICE
VOIP ROLLOUT
ALLIANCE WITH INTEL AND MOTOROLA
THE SPRINT NEXTEL FACTOR
VIDEO: AN ALLIANCE WITH SATELLITE COMPANIES?
FINANCIALS
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Clearwire Corp. takes aim at mobile WiMax business
Silver Spring, MD, August 1 -- Clearwire Corp., the wireless operator owned largely by cellular
industry veteran Craig McCaw, is teaming with key industry players in a bid to leverage next-generation mobile WiMax technology to become a major player in the evolving broadband
marketplace—and may just attain that goal.
That’s the observation of Pike & Fischer, a consulting and publishing firm for the telecom industry, which has just issued an extensive corporate profile of Clearwire.
Less than three years old, Clearwire has struck alliances with Intel, Motorola and Bell Canada to give it a rapidly growing stake in the broadband wireless market, with a determination to be a major player in the mobile-capable WiMax technology that is just around the corner.
In addition, Pike & Fischer reports that Clearwire is taking aim at two additional markets: Voice over Internet Protocol (VoIP) and video in connection with satellite broadcasting. Jumping into the VoIP market in April, Clearwire already offers that voice service in 13 of its 27 markets. On the video front, it is widely reported to be talking to both EchoStar and DirecTV about alliances aimed at aggressively competing in the provision of "triple-play" and "quadruple play" service bundles that are a key strategic target and competitive advantage of dominant cable and telco service providers.
All is not rosy for Clearwire, however. P&F notes that it has yet to make any money. Despite alliances with many cable and phone companies abroad, Clearwire faces well-entrenched competition in the U.S. It cannot match the maximum download speeds of cable modem and DSL services, and currently lacks the mobility support provided by 3G networks. It also faces competitive constraints with regard to its spectrum holdings.
The report by Pike & Fischer, a BNA company, covers every aspect of Clearwire’s business, including detailed financials dating back to its launch. Charts show pricing levels, service offerings, and markets by country, U.S. states, incumbent phone companies, and top cable operators.
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Mitchell Shapiro
Mitchell Shapiro, a Senior Consultant for BAS, has been analyzing media and telecom markets for more than 17 years. He has authored numerous in-depth reports for Pike & Fischer on competitive dynamics, vendor shares and market growth in the broadband industry, including studies on the high-speed Internet pricing, the market for municipal broadband services and strategies for deploying fiber-optic networks. He also regularly tracks the financial performance and broadband initiatives of the regional Bell operating companies.
Mitch previously served as senior vice president at Probe Research, where he was responsible for the company's tracking and forecasts of broadband network, service and CPE markets. He has also served as a senior consultant with Pangrac & Associates, a broadband engineering and strategic consulting firm, and as an analyst with Paul Kagan Associates, where he tracked technology trends and equipment markets in the cable and cellular industries. He holds a B.A. in Economics from the University of Michigan and an M.A. in Telecommunications from Michigan State University.
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