Nov 3, 2008 5:58 PM,

Clearwire CEO: FCC WiMAX approval would be "good policy"

By Kevin Fitchard

FCC vote on Clearwire-Sprint WiMAX venture could clear the way for country’s only nationwide broadband operator

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Clearwire Chief Executive Officer Ben Wolff is confident that Tuesday’s FCC vote on the merger of Clearwire and Sprint’s WiMAX assets will be a favorable one. Though the two companies plan to create a nationwide 4G network has drawn criticism from other telcos, Wolff said he believes the FCC understands that the new increasing consumer choice for broadband in the US beyond DSL and cable as well as raise the competitive bar by tying mobility to what has always been static broadband.

“Everyone understands it’s a pro-competitive deal,” Wolff said. “It creates a new nationwide broadband network. It’s not a partisan issue. It’s just good policy.”

If the FCC approves the merger of assets Tuesday, Clearwire shareholders will take up the proposal on Nov. 19, their vote being the last major hurdle toward closing the deal. The merger would open up the funding spigot as Intel, Google, Comcast, Time Warner Cable and New House have pledged $3.2 billion in capital to build the nationwide network.

Clearwire, however, isn’t sitting idly waiting for final go-aheads. While Sprint has launched its first commercial WiMAX network in Baltimore under the Xohm brand, Clearwire has been busy preparing its first launch markets, which, like Sprint’s, will go live this year regardless of where the merger stands. Clearwire has already prepped four markets for launch: Portland, Ore., Atlanta, Las Vegas and Grand Rapids, Mich. Portland was its original test trial market, now supporting friendly customer trials, while the other three will be ready by year end. Clearwire is also doing the network planning necessary to convert its current proprietary networks in dozens of markets to WiMAX. Sprint meanwhile is preparing Washington and Chicago for commercial launch.

While the two operators may seem to be operating completely independently before the merger, Wolff said they are actually working together closely—as closely as the law allows—in anticipation of hitting the ground running when the deal closes.