While there was nothing stated about Broadband Wireless Internet Access in its announcement of significant cutbacks, Sprint Nextel's (expensive) commitment to deploy Mobile WiMAX services using its 2.5 GHz spectrum has to be weighing heavily on Sprint Nextel's new CEO Dan Hesse. It's going to be expensive for Xohm to get traction in its launch markets of Washington / Baltimore and Chicago. Not only does Xohm have to explain what it's service is, but why you really need it, especially given the aggressive competition for customers of such services by AT&T Mobility (nice that a name has finally settled out for AT&T's wireless services) and Verizon Wireless, soon-enough T-Mobile's (true) broadband services expected to launch this year... and, worst of all, Sprint's own 1xEV-DO Rev. A services on its CDMA network. And doing so in the midst of downsizing Sprint's workforce and possibly consolidating Virginia employees to Kansas (good luck!), stockholder angst that the reductions don't go far enough, and salvaging a viable business out the badly-damaged iDen service. My prediction stands that Sprint Nextel will essentially spin out Xohm and its 2.5 GHz spectrum into a joint venture with Clearwire, or dump it outright. There's simply too much corporate inertia at Sprint Nextel - invested careers and tribal knowledge, technological infrastructure built for "the core competency of a telephone company is to generate billable events", and the external pressures of "the good old days of the cellular business" for a Mobile WiMAX service, with its radical distillation of "telecommunications" into "Stupid Network", for Xohm to gain any significant traction within Sprint.
By Steve Stroh
This article is Copyright © 2008 by Steve Stroh except for specifically-marked excerpts. Excerpts and links are expressly permitted (and encouraged).
You can learn more at Zero Retries Newsletters page.