For WiMax's sake, Xohm must spin ASAP from Sprint and into more capable hands

Implications: The delay in Sprint's Xohm initiative is absolutely telling, telling that there are many problems with WiMax.  The truth is that the U.S. needs faster broadband speeds to compete with Japan and Europe, but I'm not sure if Sprint has the answer.  This article discusses some of the major problems, and then prays for a quick spin-off in order to get it out of Sprint's untrustworthy hands.

Analysis:

The implications of Sprint not announcing WiMax at CTIA are as large as they are obvious.  Sprint is behind an eight-ball on WiMax.  I think that it will eventually become “live,” but there are huge chunks in the Sprint Xohm initiative.

For one, Sprint needs the help of major financing and large partners.  So, instead of this being a Sprint initiative, it is a Sprint – Clearwire initiative, with the assistance of a half-dozen of their favorite friends.  Sprint has admitted it can’t go into this alone, and that is a big admission to control, the brand, and the Sprint bottom-line.  The end game, hopefully the near end game, is a spin-off, but it will be interesting to see how much value Sprint is able to capture. 

Next, this initiative is late, very late.  It was supposed to be in initial markets awhile back (a half year+), and it still doesn’t have a launch date.  As of last Friday, Sprint just let loose all of the non-full-time consultants who were working on this project and are now looking for things to occupy the full-time workers before funding arrives. For this product, central to the Sprint bottom-line, this move represents an undesirable drag on the bottom line and a potential shot to morale.  Has anyone walked down the street to visit AOL and see what morale can do to a company?

And will the network be as good as promised?  The rumor mill is abuzz about all of the upgrades that are needed prior to launch.  Judging from telco and wireless history, this is scary news.  I love my Apple iPhone; but AT&T’s Edge network, not so much.  Sprint Nextel has had many failings with the IDen network, and this would make me extremely worried. 

Will customers come?  Sprint has had a string of miserable campaigns to attempt to fool the public, and themselves, that the combination with Nextel would bring great boons to the subscriber public.  It did not.  Fool me once …  Will consumers be satisfied with faster laptop speeds, or will they require phones and other networked appliances to access this great new network.  The wireless companies had it all wrong about consumers not ready to use these networks – they were ready, but they needed a device that delivered.  They needed the iPhone and other smartphones that changed the user interface.

Hey, I’m a huge fan of faster networks.  The U.S. is falling way behind Japan and Europe in broadband speeds, and I encourage Intel and the others to jump on board.

It is just this nagging feeling that I have about Sprint.  This feeling in the back of my throat that warns about a dying giant.  The same feeling that AOL conjured up.

For the good of Xohm, pray for a quick spin off.