Topics for this week’s Carrier Wrap include Sprint fighting to shut down its WiMAX network, Verizon Enterprise rumors and Q3 results wrap
On this week’s Carrier Wrap, host Dan Meyer and RCR Wireless News Managing Editor Sean Kinney delve into some of the more interesting carrier-related news items of the week, including Sprint’s ongoing issues with trying to turn down its WiMAX network and rumors that Verizon Communications is looking to sell off its Enterprise operations.
A court ruled last week that Sprint must maintain its WiMAX network for at least another 90 days in support of more than 300,000 customers still using the network to access the Internet. That decision was based on a lawsuit filed last month by firms Mobile Citizen and Mobile Beacon, which claim to provide affordable broadband service to 300,000 customers, including 429 schools, 61 libraries and 1,820 nonprofit organizations.
This week, Sprint received another setback as the same court dismissed the carrier’s request for a temporary suspension of a previously issued preliminary injunction. The state court also rejected a motion from Sprint looking to require a $65 million bond from Mobile Citizen and Mobile Beacon to cover the costs of running the WiMAX network over a 90-day period. The two nonprofit firms are part of larger education groups leasing the 2.5 GHz spectrum assets to Sprint, which is being used to power the WiMAX network and portions of Sprint’s LTE network.
The legal tussle appears to be about the details of the agreement with Clearwire, which, depending on the party interpreting the details, states Mobile Beacon and Mobile Citizen will have access to unlimited and unthrottled data services. Clearwire had previously offered unlimited data access through its WiMAX-enabled mobile broadband devices, though with the caveat of potential speed throttling should a customer be deemed to be exceeding normal usage. Sprint does not currently offer unlimited data access for its LTE-based mobile broadband devices, and recently said it would begin to deprioritize smartphone customers on unlimited data plans should they exceed 23 gigabytes of usage per month and be connected to a congested cell tower.
Sprint announced in April 2014 plans to shut down the WiMAX operations by Nov. 6, 2015, and said it has been successful in working with most of the companies tapping into the network in migration plans to its LTE network. Sprint inherited full control over the WiMAX operations when it acquired the entire stake of Clearwire in 2013.
In the case of Verizon Communications, rumors surfaced late last week that the telecom giant is looking to unload its enterprise assets to the benefit of around $10 billion. According to the Reuters report, the possible sale would include MCI, an enterprise wireline and Internet service provider, and data center unit Terremark.
However, Verizon Communications’ CFO Fran Shammo told attendees at an investor conference this week those rumors were “factless,” and that the “same reporters and bankers who keep saying we’re going to buy Dish. … There’s no foundation behind these comments. … These rumors and speculation are really ridiculous.”
RCR Wireless News Editor-in-Chief Dan Meyer also spoke with Jim Patterson, CEO of Patterson Advisory Group and long-time contributor RCR Wireless News’ Reality Check section, about his views on how the nation’s four largest operators are positioned coming out of the recent third quarter; a more in-depth look at Sprint’s results and the Verizon rumors tapping into Patterson’s recent column; and also touched on T-Mobile US’ latest video-based “Un-carrier X” announcement.
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