WiMAX Anyone?
By admin | July 18, 2006
By Mike Myatt, Chief Strategy Officer, N2growth
If you’re not familiar with WiMAX you may want to take a few minutes to read this blog post because it is the next big thing in wireless broadband Internet access. WiMAX (Wireless Interoperability for Microwave Access) is like WiFi on steroids. It is a second generation protocol that allows for increased bandwidth efficiency (download speeds up to 1.5Mb), improved interference avoidance and will provide access to much higher data rates over longer distances. Whereas WiFi has a range of 300+/- feet, WiMAX has a range of up to 30 miles for fixed stations and up to 10 miles for wireless stations. This is not a far off reality as it is already available in many locations around the US. This is more than just a new technology advancement, as WiMAX will have a far reaching ripple effect on business and capital markets as well.
Does anyone remember Craig McCaw or wonder what he’s been up to lately? For those of you not familar with Craig McCaw he was an early cellular pioneer whose phone network caught Ma Bell asleep at the switch. McCaw eventually sold his cellular phone empire to AT&T for almost $12BB (that’s billion with a B) dollars. As you may have guessed by this introduction McCaw is now well positioned to do the same thing to today’s cable, satellite and phone companies with WiMAX that he did to Ma Bell with cellular technology.
McCaw’s new company Clearwire founded in October of 2003 has now aggregated enough licensed radio spectrum to establish a nationwide network. In addition to having the licensing rights McCaw has also secured powerful industry partnerships and funding (the most recent example of which is a $900 million dollar investment on July 5th from Motorola and Intel) that virtually guaranty that he will be successful in engineering his latest coup.
McCaw is already live and selling the service in many markets in Washington, Oregon, California, Texas, Florida and North Carolina and is bringing more markets online with a high degree of velocity.
So, other than cool new technology that will improve your Internet experience what makes this so interesting? First of all, I’m just a big fan of Craig McCaw. It is a rare and admirable feat in business when David can conquer Goliath (and Goliaths’ don’t come much bigger than the telecomm companies) and McCaw is about to do it for a second time…You have to love this guy…
While McCaw is not likely to put Verizon, Sprint, etc., out of business, McCaw’s ability to bring a nationwide WiMAX network to the market may make it incredibly difficult for them to recoup their huge investments into the roll-out of their fiber-optic networks. If McCaw is successful with Clearwire it is likely that the stocks of phone companies and cable providers may take a substantial hit as analysts ding their ability to retain customers, increase revenue and recoup capital investments into new technologies.
While nothing is a slam dunk in the world of technology, I would strongly recommend keeping a close eye on WiMAX, Craig McCaw and Clearwire.
Topics: Mediums & Markets, Miscellaneous, Technology |
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