Feeds

Is Sprint getting cold feet about Pivot and Xohm?

As another bad quarter bites

5 things you didn’t know about cloud backup

Xohm's future?

Xohm was the best weapon, but so far it has done little to generate the market confidence it badly needs. This is unsurprising, when Sprint is trying to do something so new and radical – create the first genuine mobile broadband, quad play, open access service in the west.

But the market does not see it that way. Investors have consistently failed to get the vision, and will only tolerate it if the company is delivering strong performance in its core businesses. Otherwise, Xohm is looking like a high risk way to spend $5bn and get very little back.

Therefore, although it may lose its best chance of medium term recovery, Sprint may well defocus on WiMAX. The most likely option is probably to merge the Xohm operation with Clearwire, already its close partner in building out the operators' mutual 2.5GHz spectrum holdings, and try to IPO the merged entity.

Clearwire would gain a greater stake in a merged national network for, in current conditions, a good price – an outcome that would be vintage for its founder Craig McCaw (who at least knows how to roll out and run a disruptive new wireless service). It would also serve to placate nervous Sprint shareholders, while allowing those that are supportive of the mobile broadband vision to take a position in the new entity.

Other possibilities are for Sprint to buy Clearwire, though it would be unlikely to be able to pay McCaw the money he would be looking for in the current climate; or to attract a new investor in Xohm.

Intel would be an obvious candidate, given its need to make WiMAX work in the US, and Google would also be a possibility, given its close partnership with Sprint – it is designing a software platform for Xohm with the operator, and the companies are likely to merge this effort with an expected partnership for Google's new Linux environment.

Any decision will almost certainly have to wait for a new CEO, creating more months of uncertainty over Xohm and US WiMAX in general.

Copyright © 2007, Wireless Watch

Wireless Watch is published by Rethink Research, a London-based IT publishing and consulting firm. This weekly newsletter delivers in-depth analysis and market research of mobile and wireless for business. Subscription details are here.

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?