Clearwire drops more hints about sharing Sprint's network
CEO comments show a strategy that will be fully subservient to Sprint's, and could use its Network Vision infrastructure
Published: 6 May, 2011
READ MORE: Spectrum | US | Clearwire | LTE
Clearwire indirectly pointed to a joint 4G build-out with Sprint, with interim CEO John Stanton telling the firm's earnings call that there were talks ongoing about integrating Clearwire's future networks into Sprint's Network Vision multi-technology architecture.
Stanton had reversed the decision to sell off excess Clearwire spectrum this year, and killed one of the operator's key retail brands, Rover. Together with the hints about network sharing, all the signs are of a strategy that will make Clearwire part of Sprint's 4G plan rather than a broad-based wholesaler with its own brand too. The clipping of Clearwire's independent wings was a key reason why previous CEO, Bill Morrow, left, since he had made it clear his remit was to build Clearwire up as a self-sufficient carrier. The new tone may suggest a full takeover by Sprint in the medium term.
"We're now in discussions with Sprint regarding their network modernization," Stanton told analysts. "We believe we have the spectrum in urban areas they need to fulfill their promises to their customers and differentiate them from their competitors." Clearwire's 2.5GHz frequencies are ideal for high capacity urban build-outs, whether the firm sticks with WiMAX or moves to TD-LTE (or even FD-LTE, since it claims it has sufficient spectrum to support paired channels).
Sprint's Network Vision program will replace its CDMA and iDEN base stations with software programmable infrastructure that can host any technology, and there has already been talk of this architecture supporting third party networks as well as Sprint's own. Reportedly, the carrier has talked to both Clearwire and LightSquared about hosting their technologies on its base stations, adding their spectrum to its mix to boost overall capacity and coverage. Combining Sprint and Clearwire frequencies would support a 4G network with more than five times more capacity than Verizon's in 700MHz (though the larger operator will also deploy its CDMA spectrum in future).
Stanton said that Clearwire could deploy any technology its partners required. "We've started at the head of the pack with a WiMAX network, and I think we're comfortable with that. We need to continue to evolve our network technologically as well as geographically," he commented. "We're going to listen very closely to our customers, particularly our wholesale customers, in making that transition. Sprint is obviously our largest wholesale customer as well as our largest shareholder, and we'll continue to work very closely with them as they go through their processes."
Sprint is expected to outline its own 4G technology plan in the next couple of months, which is likely to include a clearer view on Clearwire's directions. Clearwire has already tested TD-LTE, using flexible systems from Huawei and Samsung that span both TDD technologies. Huawei has an advanced system for supporting LTE and WiMAX in tandem, but would likely be left in the cold should Sprint and Clearwire combine their infrastructure. Sprint excluded the Chinese vendor from Network Vision under pressure from government agencies. In the Vision program, WiMAX support is accomplished by Samsung's involvement, and the other vendors, Ericsson and Alcatel-Lucent, have licensed its technology.
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