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Craig McCaw’s broadband wireless firm Clearwire raises $600m from Intel Capital, $300m from others: The latest revolutionary wireless firm founded by McCaw aims to deploy mobile broadband wireless worldwide using mobile WiMax (part of 802.16e-2005). Part of the money comes from Motorola purchasing Clearwire’s NextNet equipment subsidiary, which has been manufacturing and prototyping gear for Clearwire’s network, starting with customer premises equipment (CPE), or the fixed receivers plugged in at homes.
Clearwire owns the second-largest portfolio of spectrum in the desirable 2.5 GHz band in the U.S.; Sprint Nextel is the biggest holder. This is a great band into which to deploy mobile WiMax because of the geographic coverage—Clearwire says that they can reach 90m residents with current licenses—and the channelization, which is wide enough to allow sufficient bandwidth for real mobile applications, including video. (While BellSouth owns a chunk in 2.5 GHz, their biggest holdings are in 2.3 GHz. They are already looking at equipment that would offer WiMax or WiMax-like services in both bands. This spectrum is part of AT&T-formerly-SBC’s desire to purchase BellSouth, which would also give AT&T 100-percent ownership of Cingular, and allow more combined offerings there across DSL, cell data/3G, and WiMax.)
Intel has had a chicken-and-egg problem with its backing of WiMax, particularly the mobile and portable/nomadic form, in that they need networks to drive interest in the chips they plan to include in their laptop reference designs. By investing this heavily in Clearwire, they’ve basically guaranteed that a network will be built. This also seeds more interest in competing networks, and puts the cellular operators on notice that Intel is not their partner, if they ever harbored such a suspicion. In fact, Clearwire could offer competitive voice services over their network using handsets with mobile WiMax built in.
Intel is slated to ship Rosedale 2 chips by the end of the year, according to Light Reading, which will offer both older fixed (802.16-2004) and newer fixed/portable/mobile (802.16-2005) support. They’ll also make Ofer-R available for Wi-Fi and WiMax support in portable and handheld devices.
Way back at the Centrino introduction, Intel told me that future Centrino wireless chipsets would incorporate Wi-Fi and cellular data standards. That never happened. Instead, Intel discovered the wonders of a newly competitive marketplace that they thought could evolve worldwide in which they could have a stake and a say in its operation and standards development. Intel has been a big force in WiMax from many angles, this being just the latest.
Posted by Glennf at July 5, 2006 3:16 PM