Clearwire gets into muni-wireless game with Grand Rapids WiMAX bid

GRAND RAPIDS, Mich.-Clearwire Corp. looks set to build its first municipal WiMAX network in Grand Rapids, Mich., after the city council unanimously approved the company’s bid to unwire the city’s 45 square miles with WiMAX coverage.
The deal marks Clearwire’s first contract to build a WiMAX network as part of a municipal project. The company beat out nine other proposals from such companies as AT&T Corp./IBM Corp., EarthLink Inc., NeoReach Inc. and Pronto Networks.
The city said Clearwire will own and operate the wireless broadband network delivering mobile, portable and nomadic data service throughout Grand Rapids. Though WiMAX gear is expected to dominate the network’s architecture, the city said Wi-Fi equipment also will be installed at numerous hybrid hot-spot locations.
“Clearwire’s solution uses technology that the city believes is cost effective and sustainable. It will serve the city, its businesses, residents and visitors for an extended period,” said Grand Rapids’ City Manager Kurt Kimball.
Interestingly, Clearwire will reimburse the city for the costs associated with selecting a vendor since the city vowed to provide broadband coverage at no expense to its taxpayers.
“Clearwire will pay established asset lease fees and has agreed to a cost-neutral arrangement whereby the cost of public safety and other municipals wireless broadband services will be offset by asset lease payments and additional partnership fees granted by Clearwire to the city,” said Scott Buhrer, chief financial officer of Grand Rapids.
As part of Grand Rapids’ digital inclusion plan, Clearwire will also provide discounted service for $10 per month to up to 5 percent of the city’s low-income citizens. For visitors and random users, the city said free Wi-Fi hot spots will be available across the city.
Neither Clearwire nor the city of Grand Rapids has announced which vendor will be tapped to supply WiMAX equipment for the project, and there’s been no mention as to when network construction will begin.
Last month, Clearwire launched WiMAX services in its hometown of Seattle, bringing the Craig McCaw-backed wireless ISP’s service deployments to 31 markets, covering more than 8 million potential subscribers and currently serving about 162,000 actual subscribers. Clearwire controls between 12 and 198 megahertz of spectrum in markets covering 210 million potential customers across the country. The company’s service uses a proprietary, pre-WiMAX technology and offers an alternative to DSL and cable connections.
In addition, Clearwire also recently launched a mobile WiMAX trial in Oregon. Depending on the level of success Clearwire experiences during its mobile WiMAX trial, the ISP could shift into the mobile wireless arena offering voice, data and video using mobile WiMAX technology.