Anybody who's spent meaningful time on this board knows that I've been pounding away on the notion that Sprint needs to clearly differentiate itself as a superior provider and market that superiority to wholesale partners as much as it does to the general public.
I've stated that it 2, distinct ways:
> Speed via LTE-Advanced using 40 megabit channels (20x20) via time-division multiplexing.
> Unlimited, un-throttled data subscriptions.
Dig up my postings all you want on this but here's a representative sample:
The first thrust (speed) was always going to be attainable one decent way and one way only... via Clearwire... and Dan Hesse's game playing with Clearwire brass has clearly damaged Sprint by costing them almost a year's worth of valuable time while Verizon pushes it's POPs past 200 million and snags the cable companies Sprint should have had.
Simply put, sprint doesn't have the bandwidth for what it's competitive speed requirements are going to be a few years from now and they can't afford to go out and BUY that bandwidth. Clearwire has the bandwidth and densely-constructed infrastructure in the country's most important, metropolitan geographies where 2.5ghz spectrum can offer a clear advantage. They can do by next fall what Sprint couldn't do before Verizon mops the floor with them while Sprint concentrates on complementing those core geographies with solid FD coverage outside of those geographies with assets that CAN do that job well.
The deal with Clearwire will give them the opportunity to tell an on-the-go businessman that when he leaves his suburban home and travels to his downtown office, his dual-LTE-radio handset is going to run 10 times as fast as anything Verizon has to offer and that's going to sell well to the 6-figure MBA types who want that.
Secondly, the deal with Clearwire eliminates volume-related compensation sprint pays clearwire as usage per sub ramps up. What that had darn well better add up to is the elimination of caps by Sprint on 4G devices.
Hesse has CONSISTENTLY underestimated how well the unlimited moniker has served sprint's dire need for growth throughout 2011. Clearwire has been mopping up the floor with Verizon in 4G net new subs all year and Hesse's backtracking on the one thing that has enabled that success... the elimination of unlimited 4G on all devices except handsets... was clearly a smack up alongside the head of exactly what's been working for sprint all year. It's what convinced me that Dan Hesse was a certified moron of a CEO.
But the volume-related portion of the Clearwire deal tells me that Dan Hesse may have learned something from the likes of John Stanton and the blistering welts that Sprint Chairman James Hance left on Dangerous Dan's scrawny little buttocks after that circus on October 7th...
... it's starting to look like Dan "gets it"... and maybe by this time next year, Sprint/Clearwire will have an @ss-kicking proposition for dish, PCS, an orphaned T-Mob, a small herd of Lightsquared worshipers....... and, of course, that fast-climbing MBA who would like to see his EVO jump from 14 megabits to 100 megabits of unlimited TD-LTE as he drives from the suburbs into his office in the heart of New York's business district.
... and has been for LTE to my understanding and has been somewhat for I-phone in spite of it's pass on 4G thus far. That seems to be one advantage for HSPA+... it's what I'm using and I'm very pleased with the battery life I'm getting on a galaxy S.
your spot on my friend...it's ALL about spectrum and bandwidth...sprint [ dan hesse] and clearwire [john stanton] are business buds going waaay back in the wireless industry...and together they OWN hugh amounts of it...folks need to be patient....the sprint-clearwire partnership will pay hugh dividends in the years ahead...
... more spectrum and is on the hunt for it. Even those who have it, like dish, need to partner for more in order to do a viable network. LTE-Advanced will allow companies who can do 40 mhz channels to attain 100 megabit speeds so once LTE-Advanced goes commercial, the pressure for spectrum will be another order of magnitude greater than now...
... and Clearwire can field MULTIPLE, 40 mhz channels.
Those who berate clearwire's frequency bands simply don't appreciate what clearwire has done to mitigate the disadvantages of 2.5 mhz characteristics. By deploying it in high densities in populous, metropolitan geographies, the cell density both mitigates it's propagation disadvantage AND it amps up CLWR's subscriber capacity even greater than their ample spectrum holdings do... via small-radius cell coverage.
With other carriers running into capacity constraints in those geographies, they could build thousands of pico-cells themselves at substantial cost with the small spectrum bands they have... or they could contract their overflow demand out to Clearwire, who's network can handle as much as they can throw at it at attractive wholesale rates.
If Clearwire were out there trying to mine economics out of rural transmissions at 2.5 ghz, I'd be the first to jump on the bandwagon of propagation antagonists... but that just isn't the case. You do best to optimize what you have and clearwire has done just that...
... which is the best way a wholesaler can do it.
Listened to the Verizon 3rd quarter CC the other day. They said half the LTE devices they sold last quarter were for computers and tablets. This indicates that the popularity for LTE in smartphones has yet to take off probably because of battery life issues.
Remember that Clearwire has completely aligned it's technology platform with that of the largest, wireless provider on the planer... China Mobile.
They will both use TD-LTE on 2.5 ghz spectrum and the key element of their strategic agreement is device standards.
India's wireless industry is also standardizing on TD-LTE at 2.5 ghz... the number of POPs with access to TD-LTE at 2.5 ghz will massively dwarf those who adapt Verizon's FD-LTE at lower frequencies in just a few short years...
... and Verizon's FD-LTE is what sprint must use for it's network vision project due primarily to sprint's skimpy spectrum holdings.
I think the Android phones will continue to do well. I got a chance to try out an iPhone4S and the new Galaxy EPIC II at a Sprint store for a few minutes.
I liked the larger EPIC screen, but the iPhone did a great job of rendering web page text where I could easily read it dispite the 3.5 inch screen
Even though Sprint may not be ready to use the Adv LTE network for smartphones until 3rd quarter of 2013, if Clearwire can add retail customers to its new empty network earlier, that revenue after cpga cost would drop to the bottom line and help Clearwire get to cash flow positive operations.
... from sprint subject to the contractural guarantees. What got eliminated in the 12/1 agreement is volume surcharges, which was (reportedly) why sprint axed the unlimited 4G for devices other than handsets. Now, no matter how much data a subscriber crams down a WiMax pipe, sprint pays nary a dime more for the volume... which was the whole idea behind Clearwire's mega-capacity anyway and I've no problem with that... especially if sprint exploits it to the advantage of both companies.
WiMax subs will continue to grow... hopefully well given sprint's i-phone diversion. We forget, sometimes, how technology-blind the average subscriber IS out there given our knowledge on this board...
... but Clearwire's 1.9 million new subscribers eclipsed Verizon's "overall" 1.2 million net-new simply because while the majority of subscribers relate to words like "4G" and "unlimited"... it's a little tougher for them to appreciate what "LTE" means relative to "WiMax"... especially since nobody throws the WiMax word around much out there in the phone shops.
WiMax will do reasonably OK until LTE lights up, IMHO.
I don't think the WiMax 4G wholesale net adds mean much to Clearwire going forward because Sprint is going to pay Clearwire 150 million per quarter in 2012 and 75 million per quarter in 2013 for WiMax service regardless of iPhone cannibalization and curtailment dongle and hotspot 4G unlimited.
Sprint will probably go back to unlimited 4G WiMax everything in Jan 2012.
Are you from Washington white house, or Washington State?
You sure sound like you talking from the Washington White House. You talk forever and never really say anything !
Dam.. go to work for the Government with your bla bla bla...you blend RIGHT IN !