Clearwire kicked off its 2010 big-market push today with the launch of its WiMax service in Boston, effectively ending whatever hopes Verizon Wireless may have had of being the first 4G service provider in Boston. VZW is trialing long-term evolution in Boston and Seattle today, making those two cities the likeliest to go live first in year-end launch plans.
Clearwire now has both those cities covered, but it also has plans to roll out its WiMax service soon in several other cities VZW is likely targeting in its 25-to-30-market launch schedule this year. VZW hasn’t named specific markets, but given the enormous scale of its launch (100 million pops covered in 2010) and the relatively small number of markets, the list must include some pretty large cities like New York, Los Angeles and San Francisco — three key markets Clearwire is yet to flip the switch on.
To make matters more interesting, T-Mobile also announced on Tuesday that Boston is now served by its high-speed packet access plus (HSPA+) service, a 3G network that T-Mobile claims can deliver 4G speeds. By the time VZW goes live in Boston and other major cities, it could face two competitors already marketing so-called 4G services. In addition to Boston, Clearwire and its virtual network partner Sprint launched WiMax in Providence, R.I., and Daytona Beach, Fla. Meanwhile, T-Mobile expanded its HSPA+ footprint to cover 100 million pops, adding Erie, Penn.; Fresno, Palm Springs and San Diego; Miami; Richmond, Va.; Spokane, Wash.; and Topeka, Kan.; as well as Boston.
Speaking of T-Mobile and Sprint, there are more rumors of a possible tie-up between the third- and fourth-largest U.S. operators through the bond of 4G. The Wall Street Journal reports that T-Mobile is interested in investing in Clearwire, giving the currently 4G-less operator access to a WiMax network and Clearwire access to funds it needs to complete the final two-thirds of its nationwide rollout after this year. According to the Journal, though, Sprint hasn’t yet signed off on the proposal. With a 54% stake, Sprint has the highest interest in Clearwire, though it doesn’t control the board.
Connected Planet’s take,
Kevin Fitchard:
Sprint’s in an odd position. While I’m sure it wouldn’t mind other investors coming on board so it doesn’t have to funnel more capital into Clearwire, I’m not sure if wants one of those investors to be one of its primary competitors. Given that Clearwire’s future and Sprint’s own 4G plans are uncertain (Clearwire could be an LTE operator in several years, while Sprint may investigate its own LTE options), any tie-up between the two could have enormous implications in the future.
As for T-Mobile it actually has plenty of 4G options if it wants to rent not buy. Not only is Clearwire opening up its networks to all comers, new LTE operator LightSquared is taking a wholesale-only approach to LTE and would welcome T-Mobile as an anchor customer. T-Mobile wouldn’t be aligned with other U.S. operators in technology or spectrum. But if you don’t own the network, who cares?
But depending on the graces of others is a tough thing to do, especially if being a network operator is your primary business. I’m sure T-Mobile wants some control over its fate, and if mobile data is really the business of the future, than it has to own, at least part, of its mobile data networks. With Clearwire, T-Mobile may have a safer bet than others. Even though there are all kinds of financial, strategic and technological questions swirling around the operator, one thing there is no question about is Clearwire’s spectrum position. With three or more times the 4G spectrum of most operators, Clearwire has plenty of room to grow its WiMax network (or future LTE network) before Sprint, T-Mobile and the other MVNOs start jockeying for available capacity.
That’s our take on this. Let us know what you think in the comments section below: