Uncrossing the Wires - Can Clearwire be Fixed?
Clearwire is the first major WiMax broadband service offering. The company initially launched with fixed-line replacement broadband for people's homes or offices. This puts them into direct competition with cable and DSL providers. Let's look at the landscape to see how Clearwire stacks up:
| Provider | Plan Name | Price | Speed | Term |
| Clearwire | ClearPremium Choice | $26.99 | 1.5 Mbps | 2 yrs |
| Clearwire | ClearPremium Plus | $44.99 | 2.0 Mbps | 2 yrs (3 mos. at $19.99) |
| Qwest | Faster | $44.99 | 1.5Mbps | 2 yrs ($26.99 with home phone) |
| Qwest | Fastest | $54.99 | 7.0 Mbps | 2 yrs ($36.99 with home phone) |
| Comcast | High Speed Internet | $52.95 | 6.0 Mbps | 0 yrs ($42.95 with cable TV) |
As you can see, Clearwire's service offerings are not necessarily any cheaper or faster. In fact, existing Qwest Local Phone and Comcast Cable TV subscribers can get 4x faster access for less money. So why would anyone go with Clearwire?
They are priced at parity with Qwest on their voice bundle:
| Provider | Plan Name | Price | Speed | Term |
| Clearwire | Clearwire Voice Bundle | $71.98 | 1.5 Mbps | 2 yrs (3 mos. at $24.98) |
| Qwest | Unlim LongDist Bundle | $71.98 | 1.5 Mbps | 2 yrs |
But what about mobility? Clearwire announced a PC card service recently that is $10 a month cheaper and slightly faster, but their coverage area is terrible in comparison to Sprint and soon to AT&T as well. Here is how the mobile plans compare:
| Provider | Plan Name | Price | Speed | Term |
| Clearwire | PC Card Premium | $49.99 | 1.5 Mbps | 2 yrs |
| AT&T | DataConnect | $59.99 | 1.4 Mbps | 2 yrs (5 GB limit) |
| Sprint | Mobile Broadband | $59.99 | 1.4 Mbps | 2 yrs |
Clearwire also has a home/mobile bundle, but if you've got a mobile broadband PC card, what do you need home broadband for unless it is significantly faster (which Clearwire's isn't):
| Provider | Plan Name | Price | Speed | Term |
| Clearwire | ClearPremium Plus w/ PC | $79.99 | 2.0 Mbps | 2 yrs (1.5 Mbps mobile) |
So why would anyone signup with Clearwire?
Frankly I'm not sure why someone would unless they have no other option. Clearwire has no clear advantage.
As an outsider looking in, if I were advising Clearwire, here is what I would do:
- Abandon the home broadband market in metropolitan areas with good cable and DSL coverage
- Focus on rural areas and smaller metropolitan areas with poor coverage where they may have a unique offer
- In metropolitan areas, focus on the mobile broadband market and pushing the speed/pricing envelope
- Focus on developing a WiMax signal booster that can be plugged into any AC or DC power source
- Explore alternative pricing models, possibly including advertising-supported service (as an option)
- Push the Sprint partnership through to expand the value of the combined Sprint/Clearwire WiMax offering
- Could PC cards be used to somehow improve WiFi reception?
- Support automatic switching to faster user-approved WiFi connection points when in range
- Partner with local phone or cable companies to be their mobile broadband providers
- Get Clearwire technology embedded in new laptops along with antennas that boost both WiMax and WiFi reception
Labels: Braden Kelley, Cable, Clearwire, Comcast, DSL, Qwest, WiFi, WiMax
posted by Blogging Innovation at 8:10 AM
5 Comments:
"As you can see, Clearwire's service offerings are not necessarily any cheaper or faster."
I am looking at your table and wondering how you can say that statement. $26.99 is cheaper than $44.99.
I use Clearwire because I don't need a home phone or cable service to get a home internet connection. It also allows me the ability to use the same service if I move within a serviced area with no additional hassle.
clearwire choice is an obvious option for the majority of internet users who don't demand high-speed services.
clearwire plus is a complete waste, however.
another clearwire advantage is lower upfront costs (i.e. lower or zero activation fees) and ease of mobility. If you move then your internet does not have to be setup again with the cable or phone company.
You also have to realize that the clearwire service rarely gives you near the 1.5/2mbit they say.
The latency is atrocious and the QOS is horrid (regular .5 second gaps in packets).
If you are going to user VOIP, you should not use clearwire. That's why that there is DSL and Cable which is more stable. I have Clearwire and it is OK, as I do light browsing, nothing more.-kbrookes
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