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With Clearwire's Spectrum, Sprint Can Disrupt U.S. Wireless Duopoly

2012-12-21 10:23 by
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Sprint's move to acquire the rest of Clearwire could lead to some changes on the future of the wireless industry. For a long time the carrier has been dominated by Verizon and AT&T to a large extent. However, with Clearwire's huge spectrum hoard and Softbank's backing, Sprint could soon be a big force to reckon with as spectrum resources become scarcer, high-speed 4G LTE becomes a widespread standard and subscribers get hungrier for data.

Clearwire's spectrum isn't considered prime real estate by itself, but Sprint insists that Clearwire's holdings can enhance the more valuable spectrum the Overland Park carrier already holds. That's because all of Clearwire's spectrum holdings are in the 2.5 GHz band which are less preferable for wireless services since these signals don't penetrate walls easily and lose strength over longer distances.

AT&T and Verizon's duopoly could potentially be disrupted when Sprint/Clearwire build out their respective LTE networks and people realize that they are able to offer faster 4G services than the top two carriers, especially in the urban areas where 2.5GHz has a distinct advantage. Clearwire has already started building out its TD-LTE network that it claims would be faster than both Verizon's and AT&T's. Moreover, with the higher data capacity that the 2.5GHz bands can support, Sprint will be able to sustain its unlimited plans for 4G LTE longer than many anticipate now.

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