TWC WiMAX Update

Despite eliminating 1,250 jobs, recording a quarterly loss of $16 billion, and writing down its investment in Clearwire, Time Warner Cable (TWC) expects to progress its WiMAX strategy (with Clearwire) later this year.

During its February 4th earnings call, TWC President and CEO Glenn Britt stated, “”we expect to make meaningful progress in further defining our wireless strategy.” That strategy is based on the MSOs investment and partnership with Clearwire. “We do see opportunities over time to offer a broad array of services to a variety of devices over both wired and wireless transmission technologies. As part of this, we plan to roll out an initial offering in conjunction with Clearwire in at least one city later this year,” according to Britt.

Some analysts believe that a TWC WiMax deployment in Dallas, TX is most likely among the 2009 possibilities, considering recent hiring activity Clearwire has underway in Texas. New York is a bit further out, according to Unstrung which notes that Clearwire has recently posted engineering-related job ads for the New York and New Jersey area. However, a buildout in that region could take up to two years to complete.

Time Warner Cable was the latest company to take a hit from Clearwire’s declining share price: it wrote off $367 million of its $500 million investment (Intel was an even bigger loser). Perhaps Clearwire will reveal it’s deployment plans when it reports results, expected later this month.

COO Landel Hobbs said Time Warner Cable also plans to expand its metered (cable based) broadband service to more cities this year. Currently the company offers a mere 40 GB per month before charging overage fees. In contrast, Comcast offers a 250 GB monthly cap and AT&T offers a 150 GB per month limit before charging fees. We wonder if the metered service will also extend to WiMAX when it becomes available.

0 thoughts on “TWC WiMAX Update

  1. Opinion on rate limiting/metering:

    Because bandwidth is shared by users accessing a given base station, there is likely to be some rate or throughput limitation on both upstream and downstream directions. Otherwise, one or a few users could effectively hog bandwidth that would otherwise be partitioned amongst all other users.

  2. Comcast takes writeoff in Clearwire -plans CLEAR based WiMAX service for later this year

    Comcast said its fourth-quarter earnings fell 32 percent as the nation’s largest cable operator recorded a $600 million write-down of its investment in WiMAX operator Clearwire. The write down on the Clearwire investment wasn’t a surprise, and other Clearwire investors Google, Intel and Time Warner have already taken similar charges against their earnings.

    During its earnings call, Comcast executives said they are still excited about the company’s investment in Clearwire and that the deal gives the cable operator “piece parts to begin to try out some wireless offerings.” Comcast plans to offer its first services later this year. The operator added that its cable is the best network in the home as customer demand for mobile TV and high definition streaming comes to fruition. “We are partnering with Clearwire to see where wireless goes so we have permanent access, and to see what gets built with that 100 megahertz of spectrum,” an executive said.

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