Clearwire selects Cisco for 4G mobile WiMAX
Clearwire selects Cisco for 4G mobile WiMAX: Clearwire has selected Cisco to supply equipment for its 4G mobile WiMAX network buildout.The deal appears to be Cisco’s biggest WiMAX win, though terms weren’t disclosed. WiMAX technology allows wireless service at much faster speeds than 3G networks.
In a Wednesday release, Clearwire (Nasdaq: CLWR) said that Cisco (Nasdaq: CSCO) will provide core infrastructure for Clearwire’s national network and build new mobile devices compatible with Clearwire’s Clear 4G mobile WiMAX service. Financial terms of the alliance weren’t disclosed.
Financial terms of the deal, which will see Cisco offloading a ton of Internet infrastructure and devices on Clearwire’s doorstep, were not disclosed, but Cisco certainly isn’t placing all of its eggs in one basket.
Overland Park, Kan.-based Sprint Nextel Corp. (NYSE: S) is majority owner of Clearwire, which includes Sprint’s former WiMAX unit. The deal to form the new Clearwire closed on Nov. 28 in a $14.5 billion deal that combined Sprint and Clearwire’s WiMAX assets and included $3.2 billion from several strategic investors.
Clearwire is in the process of testing and certification of Cisco’s 7600 series routers, ONS 15454 and ONS 15310 optical platforms, ASA Firewalls, and the Service and Application Module for IP Home Agent.
Clearwire currently provides mobile WiMAX services in Baltimore and Portland, Ore. The company expects to spend $1.5 billion to $1.9 billion this year of the more than $3 billion it received from investors to launch WiMAX this year in cities such as Atlanta, Las Vegas, Chicago, Dallas/Fort Worth, Honolulu, Philadelphia and Seattle. Launches next year are expected in New York, Boston, Washington, Houston and the San Francisco area. The company expects to reach as many as 120 million people by 2010.
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