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Towerstream CEO Says Don’t Count It Out in 700 MHz Auction

Towerstream can win 700 MHz spectrum despite its size, CEO Jeff Thompson said Thursday during a panel at the Thomas Weisel Partners conference in San Francisco. The wireless broadband firm said Wednesday it filed an auction application (CD Dec 13 p9). Thompson and officials from FiberTower and Airspan Networks also discussed WiMAX’s advantages over Long Term Evolution (LTE), a rival technology embraced by AT&T and Verizon Wireless.

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The 700 MHz frequency is “a great piece of spectrum, almost too good,” but history proves size doesn’t preclude companies from getting spectrum, he said, noting that some AWS spectrum auctioned last year went to low bidders. Towerstream is “fortunate enough” to have applied for designated entity bidding credits that would give it a 25 percent discount, he added.

The 700 MHz talk marked a departure from WiMAX chatter dominating the panel. WiMAX creates a high service quality for applications that have never been seen on wireless, said Chad Pralle, AirSpan marketing vice president. It also makes possible the concept of “hyperconnectivity,” in which consumers connect a large number of devices to the same network under one account, he said. WiMAX also has advantages for international travelers, Thompson said. Now, travelers wanting to use cellphones abroad must first call their carrier to arrange it, he said. Like Wi-Fi, WiMAX will work “no matter where I go,” he said.

“LTE is something that’s going to happen tomorrow as a response to WiMAX,” Pralle said. WiMAX is “too far ahead of LTE… regardless of the press releases.” However, WiMAX is not something that makes sense for Sprint Nextel “from a financial standpoint,” Pralle said. WiMAX is a “disruptive technology” that “should come from disruptive companies,” not existing market leaders, he said. WiMAX enables new entrants to compete against telecom giants because users can self- install, he said. Previously, the need for technician installations limited smaller companies’ growth, he said. Towerstream is one of those disruptive companies, selling WiMAX to “get around phone companies” who control the market with legacy infrastructure, Thompson said.

More user-friendly interfaces will drive wireless data use, officials said. The iPhone’s interface “fundamentally changed everything” by creating a more “intuitive” smartphone, said FiberTower CEO Michael Gallagher. Pralle agreed, citing a history of consumer resistance to using the Internet on a 2.5-inch screen. The iPhone’s easy-to-use browser has led to consumers “getting used to” the concept, he said. Google’s planned “Android” operating system could be another game changer since its open source architecture means easier phone customization, Gallagher said.