Clearwire outlines plans for 4G smartphone
By Paul Taylor in New York
Published: January 14 2010 02:00 | Last updated: January 14 2010 02:00
ft.com
Clearwire, the US-based WiMax network operator, will launch the first 4G-enabled dual-mode smartphone in the second half of this year, according to chief executive William Morrow.
A dual-mode WiMax smartphone will enable mobile users to download internet content up to five times faster than the current generation of 3G handsets as well as make voice calls over Sprint Nextel's existing voice network. Sprint holds a 56.5 per cent stake in Clearwire.
Clearwire, whose other strategic investors include Intel, Motorola, Google and three leading US cable companies, has begun selling high-speed wireless internet access for the home and mobile to customers in some US markets.
It is, however, racing to expand its WiMax network ahead of the launch of rival 4G networks based on the LTE (Long Term Evolution) technology favoured by traditional mobile operators. Verizon Wireless plans to begin deploying LTE this year.
While Clearwire has considerably more wireless spectrum available to roll out 4G, analysts believe its "first mover" advantage could disappear quickly once LTE networks are rolled out.
Clearwire's WiMax network currently covers about 30m "Pops", or points of access, in cities ranging from Las Vegas to Detroit. It aims to complete its WiMax network roll-out this year, adding another 80m Pops including coverage in New York and San Francisco.
"We will cover about three-quarters of the top 100 markets [in the US] by year end," said Mr Morrow in an interview during the Consumer Electronics Show in Las Vegas.
Currently Clearwire's mobile offerings include a $45-a-month unlimited data plan - significantly cheaper than the mobile data plans offered by rivals such as Verizon Wireless and AT&T.
On average, Clearwire customers download between 6 gigabytes (Gb) and 7Gb of data a month, he said, adding he expected that to rise to between 20Gb and 30Gb a month.
While Mr Morrow believes Clearwire's ability to deliver high-speed mobile data to customers will remain its primary competitive advantage, he also acknowledged the company would need to offer traditional voice services to compete with rivals.
"Voice is still very important . . . we will be in the smartphone business and will launch devices this year," he said.
He said Clearwire was already talking to a number of manufacturers and while he did not identify which companies were likely to launch WiMax handsets, he noted that there is "a natural affinity" between Google's Android operating system and Clearwire's all IP-based network.
Mr Morrow said he was confident the funds raised by Clearwire in a rights issue last year would be sufficient to complete its WiMax network roll-out and carry the company through until it is cashflow positive "in the 2012 timeframe". |
