IoT
Infrastructure
News
3/26/2008
02:10 PM
50%
50%

Comcast And Time Warner May Fund Clearwire-Sprint WiMax Effort

Reports say that the cable operators would contribute $1.5 billion to help deploy the wide area wireless technology.

Seeking to kill four birds with one WiMax stone, Clearwire, Comcast, Sprint Nextel, and Time Warner Cable have been in negotiations to help deploy the wide area wireless technology, according to media reports Wednesday.

Comcast, the nation's largest cable operator, and Time Warner, the second largest, would contribute $1 billion and $500 million, respectively, The Wall Street Journal and The Washington Post reported, each citing confidential sources. WiMax providers Clearwire and Sprint have been in on-again, off-again talks for months in an effort to roll out the still largely field-untried mobile WiMax technology. Sprint originally placed the price of a nationwide WiMax rollout at $5 billion, but the number was recently lowered to $3 billion.

WiMax could solve different challenges faced by each company: Sprint and Clearwire are strapped for cash to underwrite a WiMax rollout, while the cable operations of Comcast and Time Warner are under intense pressure from 3G cell phone services supplied by newly aggressive competitors Verizon and AT&T. WiMax could help the cable operators compete more aggressively.

"Comcast and Time Warner are home-, broadband-, and PC-oriented, so WiMax as a choice to get into wireless makes sense for them," Jupiter Research analyst Julie Ask told The Washington Post.

Intel, which pioneered the WiMax technology, is another candidate to support a WiMax rollout, because the processor and semiconductor maker is in the process of putting WiMax chips in new generations of laptops. Search engine colossus Google has also participated in some of the WiMax talks. The Wall Street Journal has listed additional possible participants in a WiMax rollout, including retailer Best Buy and Bright House Networks.

Clearwire has been signing up WiMax subscribers in different scattered regions of the United States, while Sprint has deployed the technology in the Chicago and Baltimore-Washington regions. Nearly all WiMax subscribers are offered fixed WiMax, although Cisco Systems' Navini Networks unit has outfitted a few small networks with mobile WiMax.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
2014 Next-Gen WAN Survey
2014 Next-Gen WAN Survey
While 68% say demand for WAN bandwidth will increase, just 15% are in the process of bringing new services or more capacity online now. For 26%, cost is the problem. Enter vendors from Aryaka to Cisco to Pertino, all looking to use cloud to transform how IT delivers wide-area connectivity.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of July 17, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.