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US: An announcement with a twist August 11, 2006

Posted by Jasper in broadband, Strategy.

Yesterday the FCC began the biggest ever auction of spectrum. Is it a coincidence that Sprint Nextel made their WIMAX announcement a day before? It certainly sends a signal to the market. But Sprint Nextel already has significant spectrum holdings in their preferred frequency range and what about this unlikely auction partnership with cable leaders Comcast, Time Warner, and Cox Communications?

Wireless could cover any holes the cable companies have in their coverage and there are certainly additional business opportunities available to the partnership that are not available to many of the pure wireless companies bidding in the auction (e.g. integrated wireless and wireline service offerings). But these are only speculations, Sprint Nextel and co have been wise not to disclose their plans, creating uncertainty in the marketplace which is likely to their benefit in the auction. No doubt Sprint Nextel is playing the game and intent on conquering the market.



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