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CNN Article on Future of Wireless Companies and Spectrum


CNN Article on Future of Wireless Companies and Spectrum

This week, CNN Money is running a series on the wireless companies, spectrum constraints, and some predictions about the future.  Today's focuses on the companies themselves.  The bottom line is that there are a lot of opportunities and challenges ahead for Sprint.  A couple of interesting pieces:


Industry analysts also think that Sprint and T-Mobile could gain approval to merge, though that's a bit like two drowning victims clinging together. Sprint is losing piles of money every quarter, while T-Mobile is hemorrhaging customers with contracts.

LightSquared, a venture-backed company that wants to build its own nationwide wireless network, has vast ambitions and an equally gigantic problem. Its spectrum is only licensed for satellite services, not the terrestrial transmissions needed to carry wireless phone signals. LightSquared is currently caught in -- and losing -- a high-stakes regulatory fight over the issue.

Sprint (S, Fortune 500) has by far the most available spectrum through its partnership with Clearwire (CLWR). But not all spectrum is created equal. Clearwire's is in such a high frequency band that signals travel very short distances and have terrible building penetration. That means Sprint has to build many more cell towers than it otherwise would.

Link to the article:


CNN Article on Future of Wireless Companies and Spectrum

Yesterdays article dealt with the simple fact that spectrum is a finite resource and it is vanishing. There is a point that data overload will hit a wall and prices are expected to rise. This is a super series to read if you are techy.


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