Paul Kapustka's Blog
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July 10, 2006
Is the Moto/Intel Clearwire investment good for WiMAX?
Playing catch-up here a bit, but wondering whether last week's Intel/Moto investment in Clearwire -- a stunning $900 million private placement -- is good news or bad news for WiMAX, given that Clearwire pulled a planned IPO to take the private dough.
Since Clearwire is still privately held, there has been scant information about the company's success (or lack thereof) so far in selling its pre-WiMAX services. And completely ignored in all stories about the investment is the company's previously murky attitude about independent services like VoIP or video downloads, which we've covered several times.
Now, it's clearly smart to take $900 million whenver it's offered, but it's also coming from two players who have a very vested interest in seeing WiMAX succeed -- especially Intel, which needs another win along the lines of Wi-Fi to give its chips an edge over AMD's.
The question then is whether WiMAX (especially Clearwire's pre-standard version) itself is attractive, or whether Intel can't afford a Vonage-like IPO flop that could chill further WiMAX investment. Wondering if those who think WiMAX will be the so-called third pipe think this is good or bad news? Please feel free to weigh in below in the comments.
Posted by paul at July 10, 2006 10:23 AM
Comments
Intel is in desparate need of new senior management. Barrett and Ortillini do not have what it takes. A new dynamic leader would catapalt the stock. The current leadership has a ongoing record of upsetting the street.
Posted by: tony buono at September 7, 2006 08:25 AM