MWC: Verizon CTO calls software, vision deciding factors in LTE vendor picks

If Verizon does get its networks off the ground on time, it could present a serious threat to both its traditional wireless competitors as well as fellow 4G mobile broadband operator Clearwire. Clearwire has only launched two WiMax networks, in Baltimore and Portland, and is re-evaluating its launch schedule for this year. Similarly Sprint’s 4G strategy piggybacks off of Clearwire’s network, so it will find itself under the same pressure from Verizon.

Today Clearwire issued a statement saying that having more 4G operators in the US validates its own strategy and creates more consumer awareness for mobile broadband services, though it did not specifically address Clearwire’s own deployment timeline. The statement went on, however, to claim that Clearwire’s WiMax technology is superior to LTE, giving it an inherent advantage in the 4G market.

“Not all 4G networks are created equal,” Clearwire said. “Differences in spectrum holdings and underlying network architecture will deliver different user experiences. Today, Clearwire customers experience better speeds and bandwidth than what is being described as next year's LTE networks. Clearwire continues to move full speed ahead with plans to introduce new mobile WiMax markets, services and devices this year.”

Research firm Stifel Nicolaus said that Clearwire is hampered by a high-cash burn rate and difficulties deploying its networks. Though Verizon will only build two networks this year, it will be breathing on Clearwire’s heels in 2010, putting considerable pressure on the WiMax operator to turn more 4G networks live by year end. “Its current WiMax business strategy continues to hold the distinct advantage of being a proven, ready-to-go technology today, however with Verizon's announcement this morning, that window of opportunity appears to be closing fairly rapidly,” Stifel analysts said in a research note today.

AT&T and T-Mobile have said they are in no hurry to deploy LTE, choosing instead to first migrate their current 3G networks to evolved high-speed packet access (HSPA+). Stifel said they too will face pressure to deploy LTE sooner rather later, but given they already have sizable 3G broadband networks in place, the pressures won’t be as intense as those facing Clearwire.

Related Articles

Telephony’s 4G Race Topic Page

The World According to Barry

GSMA seeks 700 MHz spectrum for LTE and European, U.S. harmonization