WiMax.com Blog
Sprint, Clearwire Get Set to Merge
Thanks to the FCC’s approval, the clock is now really ticking forward on the Sprint-Clearwire merger that will create the “New” Clearwire and its nationwide WiMax network.
While we still need to see a
Clearwire shareholder vote later this month, the number everyone wants to
know — how many folks have signed up for Xohm services in Baltimore — is still
unknown, since neither Sprint nor Clearwire reported any Xohm user numbers in
their recent respective earnings calls.
There were some WiMax nuggets, however — one from Sprint’s report last Friday
said that the company spent $134 million in capex on WiMax during the quarter,
we are guessing probably not all in Baltimore but in some soon-to-launch markets
as well.
On the Clearwire side, the company all but stopped promoting its previous
“WiMax-like” service, signing up just 8,000 new subscribers during the
most-recent quarter. However, on the mobile WiMax side Clearwire said its
Portland, Ore., network is ready for an “official” launch in Q1 2009 (though it
will probably be working before the end of the calendar year) and that it also
successfully tested the implementation of a mobile WiMax overlay in one of its
previous technology markets. Having lots of spectrum is what will let
Clearwire upgrade its past markets to mobile WiMax without having to rip out the
earlier technology.
Once the deal is done, the new Clearwire will be able to move forward with
planning, marketing and deployment — we are still guessing (and it is just a
guess) that there will be some big splash at CES 2009, with any luck on the
mobile WiMax network Clearwire is building there. Maybe it’s time for some
snoopin’ and sniffin’ to see if the network is live yet.
Paul Kapustka
Sidecut Reports
Early Verdicts: WiMax Rocks!
With the New York Times and Businessweek both weighing in Thursday with highly favorable reviews of the Xohm WiMax service recently launched in Baltimore, it's a safe bet there are some happy folks at Sprint and Clearwire headquarters right now.
Though it's far from champagne-popping time, you couldn't ask for a better start
to a marketing campaign than having a double-barreled pat on your back from two
mainstream publications like the Times and Businessweek. BusinessWeek's tech
columnist Stephen Wildstrom
gave the service a test run (courtesy of a Lenovo laptop with WiMax embedded
inside) and found it to his liking, especially the seamless handoff between cell
sites while moving. You could call him the No. 1 WiMax fanboy after reading his
conclusion:
"At launch, XOHM is providing faster service at lower cost than 3G networks, and
it provides both mobile service and a rival to cable and phone companies for
home Internet. That's enough of a reason for all of us to cheer for WiMAX."
(Somewhere, I see Barry West sipping a scotch and smiling.)
The Times' Bob Tedeschi also
found the service to his liking, though some of his conclusions (that Wi-Fi
will still dominate in rural markets -- maybe he hasn't heard that WiMax is
actually making inroads in rural markets thanks to its lower cost of deployment)
show that perhaps he could use a
great report on the state of WiMax business in the U.S. Here's the money
quote from the Times piece:
"When I visited Baltimore last week, Xohm operated at broadband speed no matter
what kind of demands I put on it. I opened multiple browser windows,
simultaneously streaming videos in each, without a hiccup. I ducked into alleys
and hotel room corners and the connection still sped along nicely."
Reviews from the trade press were similarly enthusiastic, and in some cases with
a lot more details to chew on. My favorite so far is from former colleague and
Baltimore resident Nick Hoover, who is actually using WiMax as his
"production network" as they say in the enterprise world -- running Voice over
IP for work calls, and filing stories over the broadband link. The folks over at
Computerworld also gave the network a test, with favorable results. The bottom
line seems to be that Barry West and Co. did a fine job making sure the
Baltimore network was up to snuff before releasing it to the public. Let's see
how the track record goes when Xohm and WiMax open up in Chicago and D.C.
Need to know more about WiMax? Order our
recently updated WiMax report, with full analysis of the "new" Clearwire
deal and the motivations for investors Comcast, Google, Intel and others.
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tags:
WiMax World: Xohm WiMax Test Drive
It’s really too bad that the Sprint folks couldn’t do a big launch of their Xohm WiMax network here in Chicago during this week’s WiMax World show, because it truly does deliver some impressive performance (at least as far as we could see in a limited test).
Riding in Clearwire’s tricked-out WiMaxMobile, we were accessing the Sprint
Chicago Xohm network, which is set to launch imminently, according to Sprint
senior VP Atish Gude.
It will probably be next week before we get around to posting some video
highlights of our WiMax test drive, but during our short trip around the
southern part of Chicago we watched live video on Hulu.com, made a Skype call to
a pizza parlor (I was a little disappointed when my Clearwire hosts didn’t
actually order a pie) and watched our position change dynamically on a Google
Maps mashup application, among other fun things. It’s hard to be a WiMax
doubter when you see performance like this in action:
Hey, it’s fast enough to do a lot of things, including ordering some excellent
analytical research!
We’ll have more thoughts from our WiMax World interviews next week. In the
meantime, check out our friend
Mari Sibley’s video from the fine party the Motorola folks threw Tuesday
night at the Museum of Science and Industry. (Tried to steal one of the
WiMax PC cards from the event, but was caught by the Moto PR team. Bad
Sidecut! Bad!)
Paul Kapustka
SideCut Reports
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tags:
The Sidecut Interview: Xohm President Barry West
As promised, here is our extended interview from last week's phone conversation with Xohm president Barry West, Sprint's point man on all things WiMax.
In this edited transcript West talks about three new markets where Sprint is already building tower sites, as well as the problems Apple's iPhone
3G users seem to be experiencing (which didn't surprise him). West also talks about the progress in the Clearwire-Sprint
WiMax merger, the devices in the Xohm pipeline and the new network's open
architecture plans.

Sidecut Reports: With the first Xohm launch scheduled for September in Baltimore, can you give us the state of the state of the network?
Barry West: We have more than 1,000 sites on air, a month ahead of our internal target date! It is actually 1,066 sites now. And in typical fashion I am increasing the target. But we are having a bit of an internal celebration today.
Sidecut Reports: Are these sites in all the three announced markets [Baltimore, Chicago and Washington, D.C.]?
Barry West: We're actually working in more than three. There's Boston, Philadelphia and Dallas/Fort Worth, we are working in all of those. Half of the sites [built so far] are in Chicago, that is our most advanced build market.
Sidecut Reports: It sounds like you have overcome the backhaul issues that delayed the initial planned launch.
Barry West: Yes. We recently did 25 sites in one day. This is one of those logistics things [putting up sites]. When you get the funnel going, it really works for you.
Sidecut Reports: Are you using Clearwire's microwave backhaul strategy?
Barry West: Yes. When it comes to microwave [for backhaul], we like it too. We are working together, as much as the FCC and DOJ allow us to work more closely. We're very much on a common [infrastructure] plan. And we liked their [microwave] application better than ours, so we switched.
Sidecut Reports: Is there a hard launch date you can share with us?
Barry West: We're launching in September. Right now we're going through a device and application testing list, and heavy testing of back-office systems. We don't expect to have any reason not to launch. The most important thing is that the [tower] sites are built. For the Baltimore network -- I drove it last week, and we are seeing 3-to-5 Mbps speeds on the download. That's on a small antenna, on a [PC] aircard in a laptop, so it's working very well.
Sidecut Reports: Will that be the advertised speeds at launch?
Barry West: It's a pretty average speed for that network overall. But it's also very important to set the right expectations with customers. This is not a cellular network, not on day one. It's really a hot spot the size of a city. So we have a very good coverage prediction tool -- when people sign up for the service, we'll make them go through a process where they say where they're going to use the device. It will tell them whether there's coverage there or not. We never want the customer to be misled.
You see a lot of quoted [wireless] data rates out there that look like they are for reception close to the cell tower, in non-loaded conditions. The reality is, you're not going to get that. On our network we have seen download speeds as fast as 11 Mbps, close to the towers. But there's no point of telling people 11 Mbps, because in the end you are limited by the devices. Again it's about setting realistic expectations.
Sidecut Reports: Do the problems with Apple's iPhone 3G surprise you?
Barry West: I've been predicting that for a long time. When you look at loading a network, it's very difficult to support the kind of apps that are on an iPhone. It's a challenge. So it wasn't a surprise to me that they would have problems. I think 3G is really a tease technology -- when the conditions are optimal, it works really well. But knowing you can only get it some times is really aggravating.
Sidecut Reports: What devices will be ready for the September launch?
Barry West: We'll have in what we call category 1 -- meaning devices that we buy, and sell through our distribution -- a Zyxel modem, a ZTE modem, a ZTE USB card, and a Samsung aircard. Very shortly after launch, we should see the Nokia [wimax tablet].
Sidecut Reports: There seemed to be a lot of device vendors backing WiMax at the recent Intel Developer Forum.
Barry West: It was really nice to see the PC OEMs committed to embedding WiMax, including Dell. We have north of 20 laptops [with embedded chips] going through our labs for testing. We're very pleased how that's going. Embedded is a good cost structure for us. We're also working with getting Sprint's 3G/4G cards on the network -- we'll see those hopefully before the end of the year.
Sidecut Reports: How are you getting along with the folks from Clearwire?
Barry West: We spent the whole day yesterday working on plans for next year. It's amazing how quickly we've been able to get into a routine. We are the new company -- we both bring complementary skill sets in. For instance they have been in the marketplace for four years, and it's nice to leverage that learning.
Sidecut Reports: What is the reception for the New Clearwire among the financial community?
Barry West: It's still a very tough market from a Wall Street standpoint. When get to an analyst conference, you still can hear that the 700 MHz spectrum is better. But what about if you don't have enough of it? Trying to explain that difference to financial types is difficult. It's still not appreciated. But now AT&T, they of course understand the value of spectrum.
Sidecut Reports: Is there still a software developer program for your networks?
Barry West: Our business model is very open. If they wanted to build applications [for the network], then Apple, Microsoft or Google could just do it. Nokia is very proud of their brand, so they will be offering their own services. We're encouraging that.
If Vonage wanted to be higher on the QoS stack, we would help make that available even though it's a competing product. It's significantly different that we have the ability to do that. We've been working on the open architecture, trying to draw attention and partner with people. The best thing for us is to drive a lot of traffic to this network as fast as we can.
Sidecut Reports: Can you tell us the pricing plans yet?
Barry West: I can't tell you. But we are printing collateral marketing material now. It's pretty exciting. There's lots of buzzing in the building.
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tags:
Boston, Philly, Dallas next for Sprint’s WiMAX
They’re whoopin’ it up at Sprint headquarters, as the Xohm WiMax folks there celebrate hitting an internal infrastructure deployment date well ahead of schedule.
A confident and happy Xohm president Barry West spoke with us by phone last Thursday
afternoon for an update on the inaugural Xohm launch in Baltimore in September,
as well as device, bandwidth and spectrum issues for both Sprint’s solo launches
in 2008 and the expected merged operations in the
New Clearwire for 2009.
According to West, the celebratory mood was due to the ops team getting its
1,000th WiMax base station “on the air” one full month before its internal
target date. In addition to the Baltimore network, West said the number of live
sites (now at 1,066) includes buildouts in Sprint’s two other previously
announced 2008 launch markets of Chicago and Washington, D.C., as well as
equipment being installed in Boston, Philadelphia and Dallas/Fort Worth.
While West did not divulge a launch timeframe for the new cities, he did confirm
that Baltimore, D.C. and Chicago will all go live as
most recently promised, with average download speeds of 3 to 5 Mbps in the
network coverage areas. West also said that Sprint will have a small assortment
of devices ready for the Baltimore launch, including modems from Zyxel and ZTE,
as well as two devices for laptops, one a
USB-attached device from ZTE and the other a
PC card from Samsung. Nokia’s already announced
Xohm-ready WiMax tablet, West said, should be available shortly after the
Baltimore launch.
Nokia 810 WiMAX Tablet.
According to West, Sprint has solved just about all the problems it had faced
earlier in getting the
right amount of backhaul services to WiMax towers, in part by adopting some
of the microwave-backhaul techniques of its imminent marriage partner Clearwire.
“It was one of those logistics things where when you get the funnel working, it
really works for you,” said West about the backhaul backlog. West said Sprint’s
tech teams recently added 25 live sites in a single day, supporting his belief
that there will be no further delays in bringing WiMax to market.
We will have a more in-depth post covering our full conversation with Mr. West
live in the next few days. In the meantime if you need to learn more about WiMax,
you can
order our Sidecut Report on WiMax, which provides an in-depth look at the
technology and the “new” Clearwire deal.