Intel Makes Major Investment in WiMax with McCaw
Intel and Clearwire announced Mon. at CTIA’s fall conference a partnership to develop a WiMax network, using the spectrum Clearwire has been quietly acquiring around the U.S. The announcement marks one of the potential highwater marks so far for WiMax, which some experts believe will quickly supplant the many Wi-Fi hotspots that have sprung up over the last few years.
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Cellular phone pioneer and Clearwire CEO Craig McCaw, who is scheduled to speak Wed., made a surprise appearance on stage with Intel Exec. Vp Sean Maloney and CTIA Pres. Steve Largent to discuss the partnership before a standing-room-only crowd. McCaw said the companies will deploy equipment by Clearwire subsidiary NextNet, under the upcoming IEEE 802.16e standard. Intel Capital will in turn invest $150 million in the rollout.
McCaw said after the speech Clearwire deployed in Jacksonville, Fla., 6 weeks ago and plans similar openings in St. Cloud, Minn., and Abilene, Tex. McCaw declined to answer questions about how much more ITFS spectrum the firm would buy or the likelihood it would achieve a national footprint. He said the company has bought spectrum in “quite a few markets” and was putting together an “orderly” business plan. “We view WiMax as global,” he said. “We want to make sure that U.S. companies continue to drive innovation.”
“WiMax technology has spawned a global community that continues to gain momentum, and we as an industry have achieved some important milestones this past year,” Maloney said. “Today’s announcement is particularly important. Carriers, equipment makers and solution providers around the world are moving quickly to lay the foundation for building this new global network.” An Intel spokeswoman said the company may form more partnerships to promote WiMax but viewed this one as significant.
“Today’s announcement marks the beginning of an important relationship to accelerate the delivery of broadband services to people across the world,” McCaw said. McCaw said Intel and Clearwire have been working on the announcement since last summer. McCaw, founder of the company that became AT&T Wireless, announced in March he would merge his Flux Fixed Wireless company with Clearwire Holdings. The announcement Mon. sheds the most light yet on his plans for the company, which has received considerable media attention, in part because of the McCaw name.
Largent kicked off the association’s fall conference Mon. by making a wireless VoIP call to Jerry Rice, the newest Seattle Seahawk. Last week, Largent said Rice could wear jersey No. 80 -- Largent’s number when he played in Seattle -- which had been retired following Largent’s Hall of Fame career. The bit started the conference off with star power and a reference to Largent’s athletic prowess but also underscored the biggest theme of this week’s conference -- the exploding importance to wireless carriers and equipment suppliers of wireless data.
The CTIA’s fall conference will shift gears Tues. with an appearance by Chmn. Powell and several regulatory panels. All 5 Commissioners are being represented at the conference this week. Comr. Abernathy is also in town for meetings but doesn’t plan to speak.