Google, Intel and Cable Companies Ponder Nationwide WiMAX JV

According to reliable sources, the negotiations are still in early stages, but the positions of the parties are firm about making the deal to happen. 

 

The two WiMAX providers have explored the possibility of a partnership. They signed a letter of intent in July 2007 to work together on a building a single, nationwide network. That deal collapsed in November due to "complexities" associated with mixing their two businesses together, according to both companies. The financial realities of trying to build out a WiMAX network—the price tag for Sprint's Xohm network is in excess of $5 billion—led the two companies back to the conference room in January.

 

Intel is greatly interested in WiMAX deal, making chips to support the wireless broadband tech and planning to incorporate WiMAX support into its mobile computing platforms. The company has already written a $600 million check to Clearwire, and has been contemplating an additional $2 billion investment in the WiMAX cause.

 

Google aims at gettting into wireless, and investing in a WiMAX joint venture would give the company an outlet for its Android mobile phone platform. The search giant would also have an additional outlet for its advertising.

 

Other involved parties will get mobility: the ability to get their content to subscribers outside of the home. WiMAX would give the companies a way of delivering content—whether voice, video, or data—to mobile devices like smartphones, PDAs, and laptops.

 

As a recapitulation, the proposal looks like a win-win for all of the companies involved, and if it results in the faster spread of wireless broadband competition, it would be good for consumers as well.