At 11 Apr 2007 15:46:53 +0000 DTC wrote:

> As previously mentioned, WiMax may not be targeting the existing
> hardwired network such as cable and DSL...but McCaw's Clearwire seems
> to be doing just that. http://www.clearwire.com
>
> Personally I think that's a failed model as Clearwire is offering
> only 1.5 Mbps comparable speeds for $50 where telcos offer that speed
> for half that price. Then to make is harder for Clearwire, telcos
> also offer 5 Mbps for around $50.

Spoken like a city slicker! ;-)

The appeal of $50 1.5Mbps service will be in the "sticks" where the only
viable broadband options are currently satellite ($300-600 for equipment,
and $50-80/month for 512k-1.5m.)

> For these customers, wireless broadband might be an alternative. But
> with the telcos aggressively deploying DSLAMs in pedestals along the
> roadsides instead of only at the central office as in the past, we're
> seeing DSL being offered out in the country side.

There's country and then there's country! Rural DSL deployment isn't
happening fast enough that Clearwire won't have a solid opportunity for a
few years if they can deploy their service before that happens. (Look at
the third world countries that have leapfrogged past wireline telephony
right in to wireless, because the per customer cost of deploying wireless
is much cheaper.) Many rural areas in the US will likely be better
served by wireless or satellite internet for quite some time.