Clearwire to test 4G wireless technology

Clearwire, the US broadband wireless pioneer majority owned by Sprint Nextel, plans to test an emerging 4G wireless technology called LTE alongside the WiMax technology it is currently deploying across a nationwide network.

Bill Morrow, Clearwire’s chief executive, said the trials, which will be begin later this year in Phoenix, Arizona are designed to “showcase” Clearwire’s ability to deploy both technologies over the same network.

He said Clearwire’s extensive spectrum holdings would enable the company to offer super fast wireless broadband download speeds of between 20 and 70 megabits per second – significantly faster than rival LTE networks planned by Verizon Communications and AT&T.

The move, which had been foreshadowed in comments made by both Dan Hesse, Sprint Nextel’s chief executive, and Mr Morrow, positions Clearwire to provide 4G network services for a wider range of wholesale customers including potentially T-Mobile USA, Deutsche Telekom’s US mobile unit which lacks the spectrum to roll out its own 4G network.

“We will be able to offer our wholesale customers a significant advantage, Mr Morrow said. While WiMax was the first so-called 4G technology to be deployed, most major wireless operators in the US and elsewhere have selected LTE as the standard for their next generation networks.

“As we have consistently stated, we remain technology agnostic, but WiMax provides us with unique advantages to meet the needs of our customers today,” said John Saw, Clearwire’s chief technology officer. Ultimately, consumers don’t care about technical acronyms, but they do care about quality and affordable internet services that work where and when they want, and that’s what we’re focused on delivering.”

As expected, Clearwire also confirmed that it will conduct the trials in conjunction with Huawei, the Chinese telecommunications equipment maker which will supply cellular base stations capable of supporting both WiMax and LTE network traffic at the same time.

Huawei, which was already a network equipment supplier to Clearwire, is very keen to expand its market position in the US, one of the few major markets in the world where it currently has little presence.

Clearwire also announced its second quarter results on Wednesday which included a wider $125.9m or 61 cents a share loss but underscored its confident outlook by raising the target for year-end subscribers from 2m to 3m.

Mr Morrow said the higher subscriber target reflecting stronger than expected growth from its wholesale customers including cable TV companies which resell its service.

In the latest quarter Clearwire said it added 722,000 net subscribers including 595,000 wholesale subscribers and ended the quarter with a total of 1.7m subscribers.

Mr Morrow added that Clearwire is now considering raising additional funds in order to accelerate its nationwide rollout past the year-end target of making the service available to 120m people.

He said Clearwire is engaged in discussions with both its existing investors and potential new investors and is also considering other financing options including the possible sale of some of its spectrum holdings. He added that the discussions are still at an early stage but that if Clearwire decides to raise additional funds, a decision will be taken by the of the year.