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Deutsche Telekom To Help Fund Clearwire?
In exchange for access to U.S. spectrum assets
by Karl Bode 10:04AM Wednesday Sep 23 2009 Tipped by Gbcue See Profile
While the rumor that Deutsche Telekom was going to buy Sprint may not be likely, Bloomberg News is now reporting that Deutsche Telekom might decide to pay Sprint, Clearwire and/or MetroPCS for access to the their U.S. wireless spectrum. Such a deal would infuse Clearwire with $2 billion in much-needed cash for network upgrades, while giving Deutsche Telekom-owned T-Mobile access to wireless spectrum that would help with T-Mobile's 4G plans. While T-Mobile obviously wants to upgrade to LTE and Clearwire uses Mobile WiMax, there are similarities that make such a deal manageable, and Clearwire bosses have lately been telling anybody who'll listen that they'll jump to LTE should the decision make sense down the road.

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tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
kudos:1

Makes more sense than Sprint.

While I didn't think it was out of the question for DT to want to buy up Sprint, I think this makes more sense. It's cheaper, and gives them more spectrum than Sprint's own holdings are. Whether DT gets Clear to switch to LTE in the future, or purchases their spectrum for their own TMOUSA LTE rollout, I think this is a great idea for DT if it's true.
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Gbcue
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join:2001-09-30
Santa Rosa, CA
kudos:8
Reviews:
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Re: Makes more sense than Sprint.

said by tiger72:

While I didn't think it was out of the question for DT to want to buy up Sprint, I think this makes more sense. It's cheaper, and gives them more spectrum than Sprint's own holdings are. Whether DT gets Clear to switch to LTE in the future, or purchases their spectrum for their own TMOUSA LTE rollout, I think this is a great idea for DT if it's true.
They probably can.
Clearwire says it's not "married" to WiMax for 4G. Would be easy to switch to LTE.
»www.engadgetmobile.com/2009/09/1···-easy-t/
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podstolom

@kanren.net

LTE & WiMax on same spectrum?

This sounds plausible to me too, assuming TMo and Clearwire can keep their markets apart, thereby allowing TMo spectrum access in their markets on which to run LTE.

Otherwise, there would have to be mechanisms in place to preclude interference if markets overlap, I would think.

Gbcue
Premium
join:2001-09-30
Santa Rosa, CA
kudos:8
Reviews:
·AT&T U-Verse

Re: LTE & WiMax on same spectrum?

said by podstolom :

This sounds plausible to me too, assuming TMo and Clearwire can keep their markets apart, thereby allowing TMo spectrum access in their markets on which to run LTE.

Otherwise, there would have to be mechanisms in place to preclude interference if markets overlap, I would think.
Whatever Clearwire does, keeps WiMax or goes to LTE, Sprint would have to follow, making Sprint a clear target for consolidation.
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Belinrahs
I have an ego the size of a small planet
Premium
join:2007-09-07
Nashville, MI
Reviews:
·FreedomNet Wirel..

Sounds nice as long as it means...

...that 4G, whether it be WiMax or LTE, is expanded out much more quickly than Sprint/Verizon/whoever could do alone. My area is so underserved - 4G would bring a whole new meaning to speed in my area. The best is ADSL through AT&T and it's available to a very limited part of town - and WiMax/LTE would be serious competition versus that. I already pay $70 a month for internet that has the potential to be easily beaten by ADSL. Too bad I'm not covered by AT&T and their crappy last-mile coverage ambitions. You know, the ambitions that don't exist.
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Sammer

join:2005-12-22
Canonsburg, PA

Comcast should buy majority of Clearwire fast!

Seems like Comcast should make an offer for a majority of Clearwire before it's too late.

Bargain

@comcast.net

Another $10b

There are no other spectrum holdings in the US remotely like Clearwire's - because of course what they have is not legal in any other band. Compared to what ATT and Verizon paid for 700mhz spectrum acquiring Clearwire is an amazing Bargain at $12b - even if you have to take Sprint with it. For another billion they could sew up at least 100mhz in nearly every US market - Tier 1 through Tier 4. No one else can EVER have a spectrum position like this one for broadband service. At 500k subscribers the maintenance of Clearwire's Wimax business vs having an LTE based platform is pretty easy math. Some of the equipment Clearwire is deploying now can be upgraded to LTE quite easily. They now have sub-$100 cars and modems so swapping a half million devices - or even a million in order to open that spectrum to 32m existing subscribers is easy math.

The downside - 1) Building out a national LTE footprint is going to be very pricey 2) the spectrum footprint would raise anti-trust questions for buyers other than the cable companies.
DarnellP

join:2004-10-12
Las Vegas, NV

Re: Another $10b

said by Bargain :

There are no other spectrum holdings in the US remotely like Clearwire's - because of course what they have is not legal in any other band. Compared to what ATT and Verizon paid for 700mhz spectrum acquiring Clearwire is an amazing Bargain at $12b - even if you have to take Sprint with it. For another billion they could sew up at least 100mhz in nearly every US market - Tier 1 through Tier 4.
Are you trying to imply that there's even a remote possibility that Deutsche Telekom could acquire Clearwire AND Sprint for $12B-13B?! If so, that is comedy gold right there!!
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Another $10b

if DT did, that would be one helleva deal!

Nite Rider

join:2002-10-13
Lynnwood, WA
Reviews:
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1 edit

Clearwire needs to deploy LTE

I live in Seattle and have tried Clearwire's services. Let's just say that I was not impressed. Move the modem the wrong direction and it drops connection, that's near a window. Speeds were on par with a slow DSL circuit, if the signal was 4-5 bars. I think my Verizon EVDO smartphone tethered to my computer works better and it costs about the same.

Wimax was a good idea almost half a decade ago, now it's bandwidth and distance limitations are a joke.

If Clearwire wants to survive, they need to deploy LTE. With LTE, I could see Sprint, T-Mobile, and Clearwire merging. Otherwise Verizon will acquire Sprint, AT&T will acquire T-Mobile, and Clearwire will be forgotten.
DarnellP

join:2004-10-12
Las Vegas, NV

1 edit

Re: Clearwire needs to deploy LTE

said by Nite Rider:

I live in Seattle and have tried Clearwire's services. Let's just say that I was not impressed. Move the modem the wrong direction and it drops connection, that's near a window. Speeds were on par with a slow DSL circuit, if the signal was 4-5 bars. I think my Verizon EVDO smartphone tethered to my computer works better and it costs about the same.

Wimax was a good idea almost half a decade ago, now it's bandwidth and distance limitations are a joke.

So how has LTE worked out for you? Oh that's right, no consumer has actually seen exactly how well or poorly LTE will perform. Why do people just ASSume that LTE is going to be the end-all of wireless?

said by Nite Rider:

If Clearwire wants to survive, they need to deploy LTE. With LTE, I could see Sprint, T-Mobile, and Clearwire merging. Otherwise Verizon will acquire Sprint, AT&T will acquire T-Mobile, and Clearwire will be forgotten.
Jeez, where do you guys come up with this stuff from...
xenophon

join:2007-09-17

1 edit

1 recommendation

LTE would have the same limitations as WiMAX. They are essentially the same technology on the backend. MIMO antennas are what is really needed to get high performance indoors for any 4G technology. That will be coming in the next round of 4G.

WiMAX is needed because it is controlled by IEEE like WiFi. I'd hate to see 3GGP (owns LTE) and telcom companies totally control wireless internet access. The cable companies won't want LTE since it is controlled by the trad telcom companies. We need both, not domination of one.

Consumers should want WiMAX more than LTE. If anything, Clear should split their huge amount of spectrum to support both, but we as consumers really should be pulling for WiMAX.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
AT&T doesn't have the money to buy TM. They would have made that move already.