The Many WiMAX Partners of Sprint Nextel

Implications: Sprint Nextel’s new Clearwire alliance questions the existing partnerships with Motorola, Nokia and Samsung for the network build out and WiMAX-capable devices. 

Analysis: The three cable operators with Google and Intel becoming allies in the new Clearwire venture provides the funding and marketing that Sprint Nextel needs for the WiMAX deployment.  But how and where the network will actually be built out might be a different business proposition.  Last year, Sprint Nextel announced partnerships with Motorola, Nokia, and Samsung to become a technology team for the network build out.  Motorola, Nokia, and Samsung were designated specific launches in the respective cities of Chicago, Dallas, and New York.  The question will be the extent of the network beyond the three major launch cities and the existing Clearwire network.  Sprint had set a goal covering 120 to 140 million pops or half of the U.S. population.  The new Clearwire alliance provides $3.2 billion in funding, but an additional $2.3 billion is necessary or the build out could be scaled back.  Comcast, Time Warner Cable and Bright House Networks agreed to the Clearwire venture with the condition of being able to access Sprint’s existing 3G broadband networks.   The implication is that if the WiMAX build out stalls, the coverage will be roaming on the existing Sprint 3G EV-DO network.  The new Clearwire funding alliance appears to want to ensure a marketable service regardless of available network from the three technology partners of last year’s WiMAX team. 
And an issue is competing for consumers with WiMAX-capable devices.  In creating the Motorola-Nokia-Samsung technology team, Sprint Nextel had added Intel to embed WiMAX chips in devices.  Sprint set a goal of 50 million WiMAX products over the next three years.  The intent was surpassing smartphones for Internet tablets and digital cameras to win consumers from the large base of Wi-Fi devices.  Are the manufacturers are going to design exclusive WiMAX devices with constraint, checking for the consumer demand and being careful not to hurt business from AT&T and Verizon for existing EV-DO and HSPDA and future LTE?   The new Clearwire venture is trying to compete in the mobile broadband space, and could be a re-make of the previously-failed Pivot alliance of cable operators to resell wireless services.