Wireless Industry Analyst

I concluded my November 16th post saying, "While mobile WiMax itself may not be down and out in the US, Sprint's Xohm needs a reincarnation of sorts to live the dream." This week, Sprint announced that it revived talks with Clearwire for a joint venture to roll out WiMAX networks. Money is likely to come from Intel and others.

I am not sure what the final outcome of these talks will be. It appears that the best route for both companies and also for a faster deployment of WiMAX in the US. Perhaps, Sprint will spin off the WiMAX business so it can focus on its ailing CDMA business. It is already looking to write off $31 billion in goodwill. In the meantime, all of us will have to hear Sprint and Clearwire tell each other, "I love you, I love you not..."

'Om Shanti Om' is the latest Bollywood blockbuster. It is a spoof in which the protogonist reincarnates and attains the glory he dreamt of in his previous birth. Sprint's Xohm is already dying a slow death and perhaps needs a reincarnation itself. Reason: Sprint called off its joint venture with Clearwire to roll out its much advertised mobile WiMax network.

In a month-old article titled "Forsee out: Will Sprint still Xohm or is UMB back?, I had stated reasons why Sprint may no longer see Xohm attractive post-Forsee. Sure enough, we are seeing its ramifications already. This retro-step is simply an indication of Sprint's commitment as a company to WiMax roll-out. It perhaps wants to so it can gain a leadership position for 4G. Unfortunately, at the current moment, there is no economic case that its investors see. Though it is still likely that Sprint will continue its roll-out efforts, this means that the pace of such a roll-out itself will be slow. There are a few comments I will make here -

While mobile WiMax itself may not be down and out in the US, Sprint's Xohm needs a reincarnation of sorts to live the dream.