Clearwire has also built a next-generation network infrastructure,
merging the best features of cellular, cable, DSL and WiFi. The system
is mobile, fairly easy to install on a customer's computer, and
high-speed. Its extensive portfolio of the wireless spectrum can
potentially cover 157 million people.
Motorola will own Clearwire's wireless equipment business. The
communications company currently sells so-called WiMAX equipment, which
helps support wireless broadband services at speeds up to 70 megabits
per second and a broadcast range of up to 30 miles. Now, Motorola will
provide WiMAX equipment to Clearwire.
As for Intel, it's no secret that company wants widespread adoption of
its WiMAX chips, including the Rosedale 2 chips it announced several
weeks ago. Clearwire provides an ideal platform for wider WiMAX adoption.
That makes the $900 million investment a win for all involved. Clearwire
no longer needs to tap the IPO market, which has become increasingly
difficult for tech companies, as seen with the dismal performance of
*Vonage*. In fact, the company withdrew its IPO filing last week. In
addition, it has two marquee partners to provide strong technology
support and probably marketing muscle.
Intel and Motorola, meanwhile, get instant adoption of their
next-generation technologies. This may spark the interest of other
prospective customers; for example, *Sprint* is considering WiMAX for
its own network. And if Clearwire does build a fast-growing business and
goes public, Intel and Motorola stand to reap a nice IPO bonus.
RAD-INFO, Inc. - NSP Strategist
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