Tuesday, October 11, 2011

Sprint Details LTE Plans As Clearwire’s Decline Accelerates | mocoNews

To say there is a bit of instability in much of the U.S. mobile backhaul market would be an understatement. After announcing it would buy about $20 billion worth of Apple iPhones, whether it can sell them or not, Sprint announced that it would expedite the building of its new Long Term Evolution network this summer, with completion by the end of 2013, a breath-taking time table. $20 billion worth of iPhones


Sprint also said it would no longer sell WiMAX devices after 2012, a clear indication Sprint intends to wean its customers off the Clearwire network. Clearwire and Sprint equities both tanked on the news. 

Sprint executives say LTE devices would be available for its network in the summer of 2012. Sprint LTE plans


Clearwire insisted it wasn’t dead, and remains essential to Sprint's 4G plans. Investors clearly aren't so sure. But with LightSquared still facing serious objections to its own LTE launch plans, that means three national networks now face a bit of uncertainty about how much capacity they will be needing, and perhaps none of the three companies can provide complete assurance of financial success in the future, as independent entities. 


Nor, for that matter, can any of the three completely shake concerns about bankruptcy. Three national networks that might not exist in the future is quite a lot of potential backhaul business that could evaporate. 


Of course, Dish Network also says it wants to build a national LTE network, so add a fourth element to the dynamic situation. 

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