May 13, 2008 10:18 AM
Competition Healthy in Wireless Broadband?
Much ado was made when the recent wireless spectrum options wrapped up and the two biggest winners were AT&T and Verizon. Pundits lamented over the fact the two biggest companies got the two biggest chunks of spectrum as they feared that an opportunity had been missed to introduce new competition into the wireless broadband market.
But now things have changed. Wireless broadband has a new entrant with some serious firepower behind it, namely a joint venture between Sprint, Clearwire, Google, Intel, Comcast, Time Warner, and Bright House Networks to deploy a nationwide WiMax network.
The consortium has set the goal of reaching 120-140 million people by 2010, offering speeds roughly comparable to DSL or cable broadband.
While ambitious in scope, the project appears feasible given the combined power of the respective companies.
Sprint and Clearwire are already in the wireless business and own a bunch of spectrum.
Intel and Google are intimately involved with developing hardware and software that takes advantage of this wireless connectivity.
And Comcast, Time Warner, and Bright House are all eager to be able to add wireless broadband to the services they sell customers.
And this initiative won't lack for cash initially as Intel, Google, Comcast, Time Warner, and Bright House have promised to invest a combined $3.2 billion into deploying this new capacity.
So within a couple of years we're going to have at least three major deployments of nationwide wireless broadband, not to mention the hundreds of regional public and private deployments.
Does that mean we can stop worrying about having sufficient competition in the wireless space? Can we declare mission accomplished?
I'm cautiously optimistic that we can. And in fact, quite frankly, I'm not sure we can realistically hope for anything better. There just aren't that many companies capable of the investment necessary for a nationwide wireless broadband deployment.
I'm also hopeful that this is a sign that competition is working, at least in the wireless world. There's enough demand to incentivize companies to invest billions in creating capacity despite a pretty competitive marketplace.
As Martha Stewart says: It's a good thing.

