Clearwire’s New CEO Bill Morrow Tackles Anti-WiMax Sentiments Head On
Bill Morrow has been Clearwire’s CEO for only two months, but he’s not at all disillusioned about WiMax’s image in the industry today.
SEE ALSO: Earnings: Clearwire Reports Higher Q1 Revenues; Details Executive Changes
In the company’s first-quarter conference call today and in an interview with mocoNews, he addressed questions head-on about why Clearwire (NSDQ: CLWR) believes WiMax will be successful—despite a lot of negative press and attention. Morrow said consumers fundamentally don’t care what technology they are using as long as it works. To make his point, Morrow used the iPhone as an example. He asked, why are Skype and SlingBox being blocked? Because “there’s not enough capacity, and the bandwidth is too narrow…In short, the demand is there, but 3G can only offer a subset of what what fixed broadband connections can offer.”
To be sure, the facts are a bit puzzling. On one hand, consumers’ appetites for applications are growing. On the other, critics wonder if WiMax is the right choice and whether Clearwire’s wireless high-speed broadband services are needed and relevant. Morrow: “I worry about whether people can process the information based on a lot of the articles I see and the comments being made.”
—On the WiMax vs. LTE debate: With many carriers, such as Verizon Wireless (NYSE: VZ), deciding to use LTE and not WiMax, it may look like there is something inherently wrong with WiMax. Morrow: “It’s natural if you are an incumbent carrier that you would want LTE. There are certain characteristics…there are some things that make it easier…The No. 1 reason why they are choosing LTE is economies of scale [For example, if China Mobile is choosing LTE, then we probably should, too.] The second reason is that they like the network better. But we are a greenfield approach, and we are taking the one that is available now.”
—On economies of scale: Morrow: “I think there’s a lot of misunderstanding of these two technologies. The technologies are really similar in nature…The benefit of WiMax is that it’s here and commercially available today. There’s a first-mover advantage, and it could shift to LTE with the scale factor, but I’m not sure if the timing is right. Verizon says it will launch next year, but if you look across the world, when are they going to deploy LTE? That’s when it will be there.” It could take three years, he said. “We have three years in the WiMax community—not just Clearwire—to build an ecosystem out there that will be able to sustain itself.” But Morrow reiterated, Clearwire can always roll out LTE if it needs to: “We wouldn’t think we’d have write off WiMax, it will have a life of its own and sustain itself.”
—It’s about devices, too. Is there anyway you could work with Apple (NSDQ: AAPL) to get an iPhone-like device?: Morrow: “There’s a little bit of a game-shifter here, too. It’s our ClearSpot device [which connects to a WiMax network and converts the signal into a Wi-Fi hotspot]. At home, you can plug anything into your DSL and use multiple devices—it doesn’t matter. We are looking at it in the same way. You can plug all your Wi-Fi devices on to the network. We are separating the device from the carrier service. This is bigger than most people realize. No longer is there a single device associated with your wireless account. So, it is happening right now. You take the ClearSpot device and an iPod Touch—and you can virtually have everything you have on an iPhone because you doing it over broadband network. This is substantial.”
—Is Barry West playing a marketing role as president of international?: Morrow: “Marketing is a stretch, but there’s a lot more carriers that are out there [using WiMax],...and we are going to collaborate with them in the legal bounds when we think about product innovation…I think it paints an entirely different picture of what people think about the WiMax ecosystem today…And Barry’s a great guy to do that.”
Posted In: Entertainment, Technologies / Formats, Broadband, WiMax, Companies, Apple, AT&T, Clearwire, Verizon, barry west, bill morrow
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