Just as Apple is making noise & consumers are getting excited about the new 3G iPhone, Sprint Nextel & Clearwire announced a deal last month where they would be combining network assets to build a new network using 4G technology which is both faster & provides larger bandwidths than today’s 3G network.
Under the agreement Sprint Nextel & Clearwire will create a new company that has already received investment dollars totalling $14.5 billion from cable operators Comcast, Time Warner Cable, & Bright House Networks, as well as tech giants Intel & Google.
For Sprint Nextel & Clearwire this is a win-win deal. Sprint has steadily been loosing market share after its merger with Nextel in 2005 & Clearwire hasn’t been profitable since they went public over a year ago. The goal for both companies is to get their 4G network up & running prior to the bigger wireless operators, such as AT&T & Sprint completing their newer & faster networks using a Long Term Evolution (LTE) technology.
With all the excitement from companies about the iPhone applications & technologies that they can now offer consumers because of the faster 3G network just imagine what type of applications companies can build for consumers with the even faster 4G network. Without a doubt, the mobile phone is quickly becoming the platform that consumers will use for the majority of their transactions.