What's Up in Cellular Rumors?

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

What's Up in Cellular Rumors?

sprint-logo-1sm.jpgFirst, Clearwire's founder and Chairman Craig McGraw resigned in February. Now CEO Bill Marrow has resigned and the rest of the C-Suite has been re-shuffled. (see story here).  Clearwire is in negotiations with Sprint and out looking for capital before it runs out of cash.

Lightsquared is also in talks with Sprint about a partnership on Lightsquares 4G network build.  MetroPCS thinks that Lightsquared would make a good partner too.

Leap Wireless is about to undergo a board shake up. Why? Too many missteps.  Leap Wireless is a great takeover target for CenturyLink.

Sprint is in talks with DT to merge with T-Mobile USA. The problems are the valuation of T-Mobile; the fact that DT has over $28B into T-Mobile USA; and how much ownership DT will have in the combined company. (FYI, Vodafone owns 45% of VZW).  Other issues are capital to build out the 4G network; integration (something that Sprint is horrible at); no iPhone; Clearwire in the mix; and Lightsquared at the edge.

The problem in cellular that is mainly a 2 horse race: Ma and Pa Bell. Everyone else is so far away as to be in a different race. Of course, Ma and Pa Bell are the only ones with a wireline division that helped fund and power the cellular company.

There are spectrum issues; radio and signalling caompatibility; and most importantly the integration issues. Interesting to watch.




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