MVS steps up WiMAX push with Clearwire and Intel backing

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MVS steps up WiMAX push with Clearwire and Intel backing

By CAROLINE GABRIEL

Published: 1 December, 2009

One of the early names in the WiMAX market, MVS of Mexico, has resurfaced, becoming part of the growing Clearwire network of alliances with a $700m deal.

MVS was an early adopter of pre-standard WiMAX technologies, working with Aperto on urban deployments back in 2003 and then adopting nomadic services using NextNet, the vendor that used to be owned by Clearwire and was then taken over by Motorola. Now it plans to launch WiMAX networks in 23 cities, in a project that has attracted financial and project support from Clearwire and from the greatest backer of WiMAX build-outs, Intel.

Intel has supported a growing list of WiMAX operators round the world, forming joint ventures in developed economies, such as Clearwire itself, the UK's Freedom4 and Japan's UQ, and also backing providers in emerging economies. Now it hopes to kickstart WiMAX growth in Mexico, where there is pent-up demand for mobile broadband because of repeated delays in 3G auctions, now set for next year.

However, MVS' plans are also dependent on regulator Cofetel, which plans to run 2.5GHz WiMAX auctions in tandem with those in 1.9GHz and 1.7GHz-2.1GHz for 3G. This is an increasingly common tactic in emerging nations where 3G does not yet exist, offering the potential for operators to create flexible 3G/4G roll-out plans that could provide better return on investment, and better targeted capacity, than a single-technology plan. Although 2.5GHz (MMDS) and 2.3GHz frequencies have been in use in Mexico for years, many licenses were originally allocated for broadcasters, and need to be reviewed as part of the new spectrum auction process. Mexico also allocated 3.5GHz broadband wireless licenses in 2003.

MVS is a provider of television, radio, publishing and broadband services and is the majority partner in Dish Mexico, a satellite TV joint venture with US-based EchoStar. Its existing 2.5GHz networks in Mexico City, Guadalajara, Monterrey, Toluca and Mexicali offer business, consumer and VoIP services, some direct but many via MVNOs and leasing partners such as AT&T venture Alestra and ISP Ego. It also has roaming agreements with other WiMAX /NextNet users like Clearwire and Canada's Inukshuk.

Like Clearwire, MVS will face the migration from pre-standard platforms to Mobile WiMAX, and this - plus the new financing - will help it scale up far more quickly than it has to date, and offer a wider range of open services. This could also create a more competitive environment in Mexico, which apart from its shortage of networks running 3G and beyond, is dominated by two units of America Movil, fixed line incumbent Telmex and its mobile sister Telcel. Like Clearwire in the US, MVS could use an advanced IP network to steal a march on larger providers - Telmex, whose ability to purchase additional spectrum in the new auctions is being challenged by various rivals, plus distant second player Telefonica.

As in other parts of Latin America, the broadcasters have often led the way in wireless broadband - Grupo Televisa, the country's largest broadcaster, is interested in acquiring WiMAX spectrum in forthcoming auctions. For Clearwire, and the Intel agenda as a whole, a major Mexican network could help create a roaming and procurement alliance across the Americas.