Sprint/Clearwire Mobile Wedding?

Getting hitched rather than building separate networks may benefit the nation's two largest WiMAX providers.
By Cassimir Medford

The two largest WiMAX providers in the United States, Clearwire and Sprint Nextel, could be forced into a marriage of convenience if the prospects for the mobile technology grow any grimmer, according to analysts. Competitive, fragmented WiMAX markets mean that any short-term prospects to reach profitability may lie in a single solution. Thus, Clearwire may sell its network to Sprint or vice versa, according to Joe Nordgaard, director of the wireless consulting firm Spectral Advantage. "WiMAX will find a natural market in rural America, where cable and DSL services do not always reach," he said. "But national coverage from both WiMAX providers is required." To date, neither Clearwire nor Sprint Nextel covers the entire U.S. But each owns larger swaths of suitable WiMAX spectrum than any other providers. So why build two separate, expensive WiMAX networks with less than national reach? "If you want to target both consumers and businesses, you need a national WiMAX network," said Sameer Mithal, a partner with BusinessEdge Solutions. "Regional coverage will limit WiMAX operators only to the consumer market."

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