DALLAS—The U.S. mobile video market can’t support all the multimedia networks scheduled to come online in the next 18 months, according to a new report from Parks Associates.
The prospects appear bright for Sprint Nextel Corp.’s planned WiMAX network and Qualcomm Inc.’s MediaFlo, according to the market research firm, but consolidation is likely for other players. A merger between Crown Castle International Inc.’s Modeo and Aloha Partners’ Hiwire businesses might be a good move for both players.
“Consolidation would be a win-win for the industry,” said John Barrett, director of research at Parks Associates. “Hiwire needs a network, and Modeo needs a more favorable spectrum allocation. They are a natural fit, whereas Sprint Nextel has a large subscriber base to support its network and Qualcomm is dedicated to promoting its technology and chipsets.”
Qualcomm has said it will spend $800 million to build out MediaFlo, which is scheduled to come online later this year, and Crown Castle and Aloha Partners said their networks will cost about $500 million each.
