What impact will a struggling economy have on WiMAX and LTE?
Could we see analysts recalculating their projections for WiMAX and LTE soon in light of the struggling economy? This week Forbes is questioning whether Sprint and the new Clearwire, which is expected to include Sprint's WiMAX network in the fold by the end of the year, can pull off a nationwide launch in a troubled economy. While Clearwire will have $3.2 billion from partners Intel, Google, Comcast, Time Warner and Brighthouse, it will need to raise an additional $2 billion to complete the network.
But then again, Clearwire could gain an advantage if the credit crunch lingers. Competitors AT&T and Verizon Wireless plan to deploy LTE and would likely freeze any deployments. For AT&T, such a deployment could be more than five years away as the operator doesn't seem to be in a big hurry to deploy the technology. During Trendsmedia's 4G event in Chicago earlier this month, the operator reiterated its position that its HSPA and HSPA+ 3G network technology still had a lot of life left in it, and that LTE technology would not be rolled out for at least another three years--and probably not on a large commercial scale for another five years. Certainly that's not good for vendors that want to see operators invest in new technology soon.
Perhaps the bigger question is whether the new Clearwire can hook consumers on new technology in a tough economy. Critics already question whether Clearwire has the wherewithal to shake up the industry with a new offering with a new brand. A struggling economy doesn't help that effort.--Lynnette
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Comments
Posted by Anonymous | October 9, 2008 - 1:56pm
Despite the credit crunch, Clearwire is in a unique position. If their cellular competitors fail to deploy a comparable technology they are afforded a "perfect storm" to step into an uncontested market. As an owner of an iPhone (as many of you are) I know from first hand experience that AT&T's characterization of "...a lot of life left in HSDPA.." does NOT give me a warm and fuzzy that they will EVER give me a true mobile broadband experience with this device on this network.
IF Clearwire can deliver what they claim, they stand a much better than even chance to emerge from this storm as a very strong contender. Their backers should take note.
Posted by Anonymous | October 9, 2008 - 2:07pm
If the Clearwire partnership is smart, all partnet marketing assests & resources will be brought to bear on Baltimore and Sprint's WiMax launch.
It's a viral thing - comparable to the buzz experienced when a new outstanding restaurant opens - it's never been more important and the economy in some ways can be a positive (migration from local loop phone service, etc.) CFC
Posted by Anonymous | October 9, 2008 - 4:39pm
I find it very interesting that people such as yourself think that the current economic times will significantly impact communications usage and growth. Communications are critical and relatively cheap compared to the real costly items for disposable income such as air travel, cars, home upgrades, schools, clothes, etc. Comm revenues will probably increase.
Posted by Anonymous | October 10, 2008 - 4:53pm
I could provide actual data-points to back this up - that is, with plausible causal relationships vis-a-vis market realities for the market in this economy and even psychology.
However, you don't appear to agree that such absolute statements of fact require that kind of support. Likewise, the title says it all.
Posted by Anonymous | October 10, 2008 - 4:55pm
Ah... I see this form asks for a Subject but then the subject is not posted. With regard to the above post then, this is all that I should have written:
A struggling does indeed help new brand entries into incumbent telecomm markets.
