Fancy Man Frrrunkus
11-10-2007, 06:32 PM
from orbitcast.com
Sprint and Clearwire have "mutually agreed" that they're scrapping the $5-billion project to build out a nationwide broadband WiMax network.
Sprint and Clearwire had signed a letter of intent back in July, but weren't able to "resolve complexities" according the press release.
But regardless of what the press release says, as soon as Sprint Nextel CEO Gary Forsee stepped down as chairman and CEO, the partnership was doomed for failure. Forsee had been one of the champions of the WiMax initiative, and his departure had been called upon by many investors who were upset over the company's poor performance. Wall Street felt that Sprint needs to get back to basics of being a wireless company, especially since the company continues to struggle two years after the $36 billion Nextel merger.
WiMax, in essence, is an unproven technology and the risk was too high.
The breakup between Sprint and Clearwire has many people doubting the future of the technology, and questioning the viability of any type of closed-spectrum rollout:
"Closed spectrum will never give you the growth of open spectrum. Auctioned spectrum gives companies a monopoly for use of that spectrum, hence a high rent is needed, and this eventually frustrates most attempts to put the spectrum to use."
An interesting thought.
Sprint still insists they intend to "provide services" under the Xohm brand but is reviewing its WiMAX business plans. Xohm would still be supported by the "ecosystem" of device, chip and other partners (including Intel, Motorola, Nokia and Samsung), but it's unclear as to what extent.
Sprint and Clearwire have "mutually agreed" that they're scrapping the $5-billion project to build out a nationwide broadband WiMax network.
Sprint and Clearwire had signed a letter of intent back in July, but weren't able to "resolve complexities" according the press release.
But regardless of what the press release says, as soon as Sprint Nextel CEO Gary Forsee stepped down as chairman and CEO, the partnership was doomed for failure. Forsee had been one of the champions of the WiMax initiative, and his departure had been called upon by many investors who were upset over the company's poor performance. Wall Street felt that Sprint needs to get back to basics of being a wireless company, especially since the company continues to struggle two years after the $36 billion Nextel merger.
WiMax, in essence, is an unproven technology and the risk was too high.
The breakup between Sprint and Clearwire has many people doubting the future of the technology, and questioning the viability of any type of closed-spectrum rollout:
"Closed spectrum will never give you the growth of open spectrum. Auctioned spectrum gives companies a monopoly for use of that spectrum, hence a high rent is needed, and this eventually frustrates most attempts to put the spectrum to use."
An interesting thought.
Sprint still insists they intend to "provide services" under the Xohm brand but is reviewing its WiMAX business plans. Xohm would still be supported by the "ecosystem" of device, chip and other partners (including Intel, Motorola, Nokia and Samsung), but it's unclear as to what extent.