Sprint v. Verizon – Verizon May Have Nothing to Worry About

Implications: Verizon has a lot going on right now.  Verizon is inviting Vodafone to leave the Verizon Wireless venture.  Verizon is acquiring Alltel. What did people think Strigl was going to say? However, Sprint may be its own worse enemy.

Analysis: Denny Strigl’s comments at NXTComm08 were no surprise.  Did anyone actually expect Strigl to say he was concerned over Sprint’s new Clearwire venture?

Verizon Wireless’ stock would have plummeted if Strigl said he was concerned over the new Clearwire venture.  In early June 2008, I would have said that Strigl should be worried.

However, after just hearing that Ben Wolff, CEO of the new Clearwire, is looking to create partnerships in Europe similar to the one in the USA, I am worried that Sprint will blow it.

Building a nationwide mobile WiMAX network will take a lot of money.  In the case of the new Clearwire, I would like to add that it will also take a lot of coordination.

Wolff’s announcement that Clearwire is considering moving into Europe now disturbs me because Sprint has yet to launch its WiMAX network in Baltimore.  The Baltimore launch is in September 2008.  It is around the corner but as network deployments go, a network is not up and running until it is providing service to real customers.  The European venture is a distraction.

The new Clearwire will only succeed if all of the partners execute decisions that all agree to.  WiMAX technology issues aside, Verizon may not have anything to worry about because the new Clearwire will shoot itself in the foot.