Intel and Motorola Invest $900 Million in Clearwire to Usher in WiMax

Strategic Insights -

Intel and Motorola's significant investment in Clearwire has ignited a heated debate over the future of wireless broadband. The joint investment of $900 million will enable Clearwire to acquire the necessary radio spectrum licenses to expand its wireless broadband services in the US. This move is crucial for Clearwire, as it aims to become a major player in the US market, competing with cable and phone broadband providers.

Clearwire's customers currently use small radio antennas in their homes, but with the new investment, the company plans to deploy mobile WiMax technology, allowing customers to roam on a network. This development has significant implications for the industry, as it may eventually allow customers to access the internet from anywhere, using their laptops.

Key Takeaways:

  • Intel and Motorola have invested $900 million in Clearwire, a company that provides wireless broadband services in about 25 small US markets.
  • The funds will help Clearwire acquire radio spectrum licenses needed to expand its services.
  • The investment will enable Clearwire to deploy mobile WiMax technology, allowing customers to roam on a network.
  • Intel and Motorola are positioning WiMax as the successor to Wi-Fi wireless Internet services.
  • Clearwire's mobile WiMax network should compete against cable and phone broadband providers.
  • Intel is developing a laptop computer chip that can connect to both Wi-Fi and WiMax networks, expected to be ready in late 2007.
  • Sprint Nextel, a rival company, has tested mobile WiMax and Qualcomm's next-generation cell phone gear.

Statistics:

  • $900 million - The amount invested by Intel and Motorola in Clearwire.
  • 25 - The number of small US markets where Clearwire provides wireless broadband services.
  • $139.95 million - Clearwire's loss for 2005 on revenue of $33.45 million.
  • 2003 - The year Clearwire was founded by Craig McCaw.

Sources:

  • UBS analyst John Hodulik, quoted in the article, stating that Intel would want to see AT&T and BellSouth's WiMax spectrum on the market.
  • Forrester Research analyst Charles Golvin, quoted in the article, stating that Intel and Motorola are in the business of building WiMax momentum in the world.
  • Gartner analyst Phillip Redman, quoted in the article, stating that mobility adds value in terms of connectivity.