A smart strategy for AT&T...MVNO WiMAX from Clearwire

[Jose Puthenkulam]

Today we are at a cusp of reducing costs for deploying new technology. So if operators decide to spend billions to build out new 4G networks, they should do it by partnering than engage in religious technology wars.

WiMAX has everything to deliver a superlative 4G experience for the consumer. The WiMAX networks being built out in 139 countries is going to grow over the years.

For any operator trying to go build out a new network vs doing MVNO, they could very easily try to start winning subscribers with the MVNO model.

To build out a nationwide LTE network it will take multiple billions and by the time these are built out, customers are not going to wait.


(These opinions are my own and not those of my employer)

[Jose Puthenkulam]

Today Mobile WiMAX has more critical mass in terms of chips, client terminal equipment and infrastructure equipment than LTE. LTE just finished their very first commercial Design IOT in Dec 2009. WiMAX did this in http://www.beceem.com/press_releases/092906.html LTE will need 3-4 years to mature. Also WiMAX Smartphones should become available in 2010, that should also start giving 3G smartphones a run for its money.

[Alan J Weissberger]

Over 4 1/2 years ago, I advised a telco client that WiFi Backhaul using fixed WiMAX (either 802.16d or e) would be the most popular use of WiMAX. To my surprise, it has not happend in a big way yet and I don't know why

[Bill Lentz]

Well in my opinion since 4G devices are scarce in the US and WiFi 802.11B&G networks are deployed in airports, hotels and many public places would be to use WiMax as the backhaul pipline to the internet for these existing customers. The base is already there get the WiFi operators a fixed rate and throw the "copper wire" provider out. Presto you have an instant fixed WiMax customer base.
Bill Lentz

[Amitabh]

AT&T has different alignments. It has partnered with the mim service from ICO using G1 satellite. The service provides cellular-satellite roaming for 3G services. This complements its own 3G network.
No, it is unlikely that it will do anything with sprint or XOHM.

[Jose Puthenkulam]

I feel the model where every operator goes out and builds a nationwide network is broken. It creates a entire duplicate network infrastructure and results in more costs being passed on to the end user. With network sharing and MVNO models, there is more scale and also better capital efficiency and overall end users will get more affordable services.

[Alan J Weissberger]

Mike,

I think SPRINT would approve of AT&T being a Clearwire MVNO because that would add a lot of prestige to the CLEAR service and help them Clearwire and the SPRINT MVNO to get more subs.
However, I do not think AT&T will be a CLEAR MVNO for the reasons given in my comment above

[Mike Wolleben]

I don't think Sprint would approve of that. They own 51% of Clearwire. Or maybe they would welcome it... they could use the subs.

[Alan J Weissberger]

I don't think AT&T (or any network operator) that's committed to LTE will ALSO be a WiMAX MVNO. It would create confusion and send a mixed message to subscribers. WiMAX MVNO subs might be worried that they'd be abandoned once the carrier transitioned to LTE. Existing 3G subs might be concerned that the operator would delay the LTE deployment which could cause them to switch to another wireless carrier that offered LTE sooner (in this case, VZW).