Intel Gives Clearwire $600 Million To Avoid Making WiMax Look Bad
from the how-it-all-works dept
If you've watched Intel's moves over the last few years in the WiMax space, it's become clear that they can't let the technology fail, despite plenty of questions about the technology. Intel has made a huge bet in the space, and over the last couple of years has single-handedly propped up the WiMax market by investing in just about every player in the space -- even those who some might consider Intel competitors. Some of this was clear nearly two years ago when Intel made a huge "investment" in Clearwire -- Craig McCaw's attempt to build a WiMax-based wireless ISP (using pre-WiMax equipment, of course). That deal seemed particularly questionable since the investment came the same day that Clearwire promised to buy Intel equipment. In other words, Intel was paying Clearwire to buy its WiMax technology. Of course, for all the hype about WiMax, Clearwire has been saying that the technology is so weak that it can't withstand people using VoIP services on it. A couple months ago, Clearwire announced that it would go public to raise a necessary $400 million. The details in the IPO filing raised a lot of questions. It didn't have very many customers and needed an awful lot of money to keep spending on infrastructure. All in all, a bad combination. Combine that with Vonage's weak IPO, and you could see problems on the horizon. It seemed unlikely that Clearwire could go out successfully. For Intel, that would be devastating. A bad IPO for Clearwire would raise a lot of questions about both WiMax as a technology and the billions Intel has bet on the technology. So what does Intel do? It throws more money after the problem, dumping $600 million more into Clearwire (and roping Motorola in for another $300), allowing Clearwire to pull its IPO. Problem solved (or, at least, delayed).Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Alaska and Hawaii
I think I'll go dump my Intel stock now. They're throwing money away.
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Re: Alaska and Hawaii
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Re: Alaska and Hawaii
Also, I think it makes perfect sense to roll out the service in areas where there is no broadband competition. The infastructure for wireless is considerably less expensive than rolling out miles of cable to remote areas.
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Re: Alaska and Hawaii
They released the Product in Alaska, Hawaii, Texas, and Florida intially (fact).
If you had any idea of the genious behind it you wouldn't be talking. Lets take an example. If you had a new type of house siding that you wanted to sell, would'nt you put it on houses in a place that gets temps below zero? an island in the Pacific? a place that has 120 degree plus days and has tornado and dust storms? a place that is riddled with humidity and hurricanes? It's called making sure your product works in all kinds of conditions.... its just plain good product testing.
There is also the fact that the infrastruccture that it takes to make the service work requires a tower every 2 miles or so. So it would seem that you would start small with cities that take 20 towers to cover as opposed to a city like New York that would take thousands.
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Re: Re: Alaska and Hawaii
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I hope they get it together
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WiMax
>it's service out in Alaska and Hawaii before New York
Its obvious that you don't know much about the technology.
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Broadband is tough to sell
McCaw has done good things for telecom in the past, but most of his companies are built to be sold. Look at what happened to his wireless companies, how debt laden they were but with lots of promise. AT&T paid a boat load for his assets only then to sell later to form Cingular.
They are going after broadband starved markets like Air2Lan did (and was very successful doing) by heading to tier 2 and tier 3 markets first. Competition in tier 1 markets is just too tough, with everyone offering almost free DSL/Data services just to keep whatever market share they can.
The question is whether WiMax will live up to the press hype, or will it crumble like the first version of Clearwire, Teligent, Windstar, Angel Project, etc...It is a decent technology so as long as they build out the system slowly enough, keep their costs down, they can be successful. They just need to look at history and learn from it, or they will be doomed to repeat it.
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Intel Must Believe in Clearwire and Wi-Max
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Re: Intel Must Believe in Clearwire and Wi-Max
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clearwire offering
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Re: clearwire offering
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The future is Clearwire
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Intel buy yahoo for wimax
We are talking about the computer internet advertise CIA
in video email sever just like the advertise in web sever with
wimax...
thank Jesus's love ,it is Goal that can not see people who can
be seen by computerized wireless network and digital camera...
remarks : Can Not sEE means Idea in MInd!!!
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ClearWire
I,m very impressed from my stand point its alot better than Metrocom I,m sure everyone remembers what happened to them
it flopped and I also built alot of there systems in Houston TX were I also reside and tested the Clear net work and it worked great even though there not openning up that market until April the system works and there already upgrading there systems to handle the high volume user climb
so I see no failure in this only bigger gains
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