Clearwire Technologies Inc. and the Instructional Television Fixed Service Spectrum Development Alliance are teaming to deliver wireless broadband services to educational, nonprofit and commercial customers, with a $97 million commitment from Goldman Sachs & Co. and Liberty Associated Partners L.P.
The partnership will give Clearwire access to licensed spectrum in the 2.5 GHz-2.7 GHz Instructional Television Fixed Service frequency band originally set aside by the Federal Communications Commission for one-way educational programming, and provide the ITFS Alliance, which is comprised of seven licensees, with technologically advanced two-way digital services.
“In the long term, the licensed bands will allow us to offer a premium service with minimal, if any, interference,” said Bob Wieneke, vice president of corporate relations for Clearwire.
Wieneke said Goldman Sachs facilitated the partnership after the investment banking firm realized both Clearwire and the ITFS Alliance were seeking funding.
In addition to having access to licensed spectrum, the alliance will help Clearwire develop a second-generation product that can operate in both licensed and unlicensed bands at higher data transmission speeds. Wieneke said Clearwire has been actively working on this equipment for about a year, and should have licensed network-compatible equipment ready for deployment next year.
Even though the wireless broadband industry is struggling to stay afloat as of late, Wieneke expressed confidence that Clearwire’s unique strategy of combining non-profit and business interests would succeed.
“We approach the marketplace in a different way,” he said. “We are more concentrated on stand-alone businesses whereas others have been more concentrated on connecting a whole building …”
The company also went out early and signed master lease agreements with three of the country’s biggest tower companies, he said, giving it access to 35,000 towers nationwide.
Clearwire currently operates in the unlicensed 2.4 GHz band, providing fixed-wireless Internet access to residential and small/home office customers in Albuquerque, N.M., Buffalo, N.Y., and Dallas/Fort Worth, with plans to launch commercial services in approximately 10 more cities by year-end. The partnership positions Clearwire to roll out ITFS services in about 100 additional U.S. cities.
Clearwire will lease the ITFS Alliance spectrum as it becomes available. Financial terms were not disclosed.
