WiMAX revs up wireless competition
Written by Anonymous on 12:57 AMThe "battle lines" are being drawn in the race to provide faster wireless Internet access across Chicago.
Technology giants including Comcast, Intel and Google last week committed more than $3 billion to fund the deployment of the WiMAX mobile Internet network in Chicago and other markets. The deal, which merges a unit of Sprint Nextel with Clearwire Corp. and new investors to form a new company called Clearwire, could bring the highly touted XOHM WiMAX mobile network to Chicago and outlying suburban areas by year-end.
WiMAX, which stands for Worldwide Interoperability for Microwave Access, is an emerging telecommunications standard that promises uninterrupted broadband wireless Internet access to subscribers anywhere within a given coverage area. It works for personal computers, mobile phones and other communication devices. WiMAX differs from the commonly used WiFi standard as it provides much broader coverage for access and a better quality of service. AT&T and Verizon Wireless currently offer a competing wireless Internet access to more than 130 million national subscribers and plan to roll out a faster service to compete with WiMAX by 2011.
"They are just kind of leapfrogging each other," said Chris O'Brien, a partner with Diamond Management & Technology Consultants. "We have seen a real definition of what the battle lines are going to be in the wireless world."
O'Brien, who previously served as chief information officer for the City of Chicago, is interested to see what the company's investors bring to the table in addition to capital.
"The really fascinating thing about Clearwater is who is backing it because you can sort of get a sense to what the thinking is," he said.
Three cable companies - Comcast, Time Warner Cable and Bright House Networks -- ponied up a combined $1.7 billion for a minority stake in the company. The conventional wisdom is those companies will want to provide their subscribers with mobile alternatives to land-based access. Intel, which invested $1 billion, makes the computer chips that enable WiMAX access. Google's $500 million commitment will also allow the Internet search giant to develop applications and advertising services within the WiMAX Network.
Chicago is expected to be among the first markets to access WiMAX in part because of the proximity to Motorola, a major manufacturer of WiMAX-enabled cell phones. There's no guarantee that WiMAX will be delivered on schedule, as there were repeated deployment delays before the recent capital infusion.
Hardik Bhatt, chief information officer for the City of Chicago, notes that while the city welcomes WiMAX as "a new broadband option," the standard will not be viable for everybody.
"The city's policy objective has been to provide universal and affordable broadband," he said. "At $50 to $60 per month, this may not be the affordable option for many Chicagoans."
By Brad Spirrison
Technology giants including Comcast, Intel and Google last week committed more than $3 billion to fund the deployment of the WiMAX mobile Internet network in Chicago and other markets. The deal, which merges a unit of Sprint Nextel with Clearwire Corp. and new investors to form a new company called Clearwire, could bring the highly touted XOHM WiMAX mobile network to Chicago and outlying suburban areas by year-end.
WiMAX, which stands for Worldwide Interoperability for Microwave Access, is an emerging telecommunications standard that promises uninterrupted broadband wireless Internet access to subscribers anywhere within a given coverage area. It works for personal computers, mobile phones and other communication devices. WiMAX differs from the commonly used WiFi standard as it provides much broader coverage for access and a better quality of service. AT&T and Verizon Wireless currently offer a competing wireless Internet access to more than 130 million national subscribers and plan to roll out a faster service to compete with WiMAX by 2011.
"They are just kind of leapfrogging each other," said Chris O'Brien, a partner with Diamond Management & Technology Consultants. "We have seen a real definition of what the battle lines are going to be in the wireless world."
O'Brien, who previously served as chief information officer for the City of Chicago, is interested to see what the company's investors bring to the table in addition to capital.
"The really fascinating thing about Clearwater is who is backing it because you can sort of get a sense to what the thinking is," he said.
Three cable companies - Comcast, Time Warner Cable and Bright House Networks -- ponied up a combined $1.7 billion for a minority stake in the company. The conventional wisdom is those companies will want to provide their subscribers with mobile alternatives to land-based access. Intel, which invested $1 billion, makes the computer chips that enable WiMAX access. Google's $500 million commitment will also allow the Internet search giant to develop applications and advertising services within the WiMAX Network.
Chicago is expected to be among the first markets to access WiMAX in part because of the proximity to Motorola, a major manufacturer of WiMAX-enabled cell phones. There's no guarantee that WiMAX will be delivered on schedule, as there were repeated deployment delays before the recent capital infusion.
Hardik Bhatt, chief information officer for the City of Chicago, notes that while the city welcomes WiMAX as "a new broadband option," the standard will not be viable for everybody.
"The city's policy objective has been to provide universal and affordable broadband," he said. "At $50 to $60 per month, this may not be the affordable option for many Chicagoans."
By Brad Spirrison
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