Wireless Network Carrier Updates: Clearwire, Sprint, DISH, and SoftBank

[Sprint storefront photo, courtesy Reuters]

SoftBank, Dish, Sprint, Clearwire

Abstract:In the area of network, there are 3 major modes of communication: satellite, tower, and wired infrastructure. The first two require finite shared resources referred to as spectrum. The final requires expensive infrastructure to be dug into the ground or strung along poles. In order for companies to compete effectively in a nation's network, infrstructure must be built or acquired. The process of acquiring or merging of assets with smaller network players is always going on, but this latest battle has been somewhat interesting.

[Disk logo, courtesy The Verge]

Background:
Clearwire, an early 4G U.S. network provider, is in talks to be acquired by two different domestic companies: Sprint (wireless provider) and Dish Networks (satellite provider.) Foreign SoftBank is interested in buying Sprint, at the same time, adding tremendous uncertainty to the mix.


[Charles W. Ergen, Dish Network’s chairman, courtesy NYTimes]

The Time Line: In October 2012, Japanese SoftBank tried to acquire the third largest U.S. network provider: Sprint. In December 2012, Sprint bought for itself a little Christmas present - Clearwire: a 4G network service provider. In January 2013, Dish made an unsolicited bid to purchase Clearwire, even though Sprint was in process of buying it. In March 2013, foreign SoftBank tries to aleviate security concerns in the U.S. by indicating Chinese equipment maker Huawei will be ejected from the network. In April 2013, domestic Dish offers to purchase Sprint to build a combined satellite and tower based wireless infrastructure. In May 2013, SoftBank agrees to U.S. government veto power over board of director appointments. Also in May 2013, Sprint increases their bid for Clearwire, to get their wireless spectrum.

[Sprint and Clearwire logos, courtesy Engaget]

What They Want & Need:
SoftBank owns about 1/3rd of Chinese electronic commerce company Alibabba, and wants a foothold in the U.S. market but has regulatory issues to overcome. (SoftBank uses primarily Chinese equipment.) Sprint needs to upgrade to 4G networking and find additional sources of revenue. Clear has wireless spectrum, but their gamble on early 4G WiMAX has not turned out to be the standard once hoped for, and needs to upgrade it's 4G network. Intel Corporation used to be a WiMAX advocate, Clearwire uses Huawei equipment. SoftBank uses the same cell phone wireless spectrum that Clearwire owns, making the purchase of Sprint (who is purchasing Clearwire) a very good investment - one phone, one infrastructure, multiple nations. Intel, a SoftBank partner, is pushing for SoftBank's acquisition of Sprint (and Clearwire) - possibly because of new promised equipment sales. Dish needs to expand it's market from Satellite television, provide content through wireless towers to cell phones, and add voice to their television service.

Ironies of Irony:
A foreign owned communication company wants to buy its way in the U.S. telecommunications market and pledges not to expel foreign equipment. A domestic owned communications company wants to expand it's U.S. telecommunications market but will not pledge to expel foreign equipment. Which is more secure, from a U.S. governmental perspective? Japanese SoftBank appears to be bending-over-backwards to make their acquisition happen.

Free 4G Wireless Internet

Free 4G Wireless Internet?

Abstract:
Wireless cellular or packet protocols are typically described by different categories, the higher the category the faster the performance. The categories are loosely defined by the International Telecommunications Union-Radio communications sector (ITU-R) and organized by Generation. The first vendor has appeared on the market to support free 4G.


Wireless History:

New wireless generations seem to be appearing regularly every 10 years since the 1980's, with the latest being 4G.
0G - Mobile Radio Telephone, appearing in 1946
1G - Analog, 22kb/s-56kb/s, appearing in 1981
2G - Digital, 56kb/s-236.8 kbit/s, appearing in 1992
3G - Multi-Media, 200kbp/s peak rate, appearing in 2001
4G - Packet based Internet Protocol, 1 gigabit peak rate, 2010-2011

It should be noted: there is a wide gap between 3G and 4G, as far as capacity is concerned. There are many intermediate steps, which vendors have branded 3.5G, 3.75G, or even as 4G (if the technology has on it's "roadmap" the ability to meet 4G specifications, as WiMAX has done.)


Internet Access:

The Internet was a term coined with access to the U.S. Military Department of Defense's TCP/IP network. Early on, this was done through cooperation between different U.S. government organizations as well as through the public and private university systems within the United States.

Regular public American citizenry started gaining access to The Internet in the 1990's via dial-up access, providing 300b/s-56kb/s. Various corporations managed to raise enough investment resources to provide this access. In the late 1990's, free dial-up internet services started to become available, through corporations like: NetZero and FreeServe. As users started to migrate from dial-up to broardband (see later), lawsuits started to be filed between major players in a shrinking market (like NetZero and Juno) resulting in consolidation and creation of United Online (NetZero and Juno created the second largest internet access provider.) Towards the end of popular dialup access the internet, major providers included: AOL, United Online, MSN, Earthlink, AT&T Worldnet.

Performance was enhanced in the 2000's via broadband or high-speed access, commonly via DSL, Satellite, and Cable. The telco market was regulated, forcing them to allow access from third-party internet service providers (ISP's.) In order to encourage quicker adoption of faster technology, the regulations were loosened, consolidating internet access to several cable, several telco, and several satellite providers. Free service broadband providers never were able to be profitable.


Internet Access and Wireless Convergence:

Internet access became possible via diverse wireless telco networks, as the wireless telephone companies became more diverse, wiress data access became more desirable, and the back-haul links to the cell towers became more robust. Internet access based upon cellular networks started becoming more competitive.


Free Internet Access over Wireless:

The local area network WiFi protocol has become nearly ubiqutous, with locations offering free internet access via WiFi in hotels, coffee shops, book stores, and even automobile service stations.

The drawback to this methodology is that people must remain in a fairly confined area. This restriction has been pretty reasonable for many people, just as "free beer" may only be available at a frat house.


Free internet access provider, Net Zero, helped to pave the way for free internet in the dial-up. United Online is now prepared to offer free ineternet access over 4G via it's NetZero subsidiary - with the purchase of equipment and for a period of 1 year (for 200MBytes of data.) After the first year, the $9.95 plan must be purchased, providing for 500MBytes of data. Using WiMAX technology, now being billed as a 4G technology, people can walk or drive around and have access to the internet.

The drawback is clear: with the purchase of the hotspot or USB dongle, Internet is only free for 1 year. No one has a right to complain how long something is free, the consumer just needs to decide how good of a deal it is for them.

Network Management Connection:
With the rapid expansion of wireless as an access mode and the rapid cost reduction in internet access for wireless devices, inexpensive and massively scalable network management tools will become a requirement.