Clearwire says WiMax and LTE can co-exist, unveils new marketing effort

In a conference call and press release this morning, Clearwire offered more details on its merger with Sprint Nextel's wireless broadband service and the $3.2 billion cash investment from Comcast, Intel, Time Warner Cable, Google, and Bright House Networks. Despite having raised $3.2 billion from some of the biggest corporations on the planet, Clearwire Chief Executive Ben Wolff described the newly-formed company as the "underdog" in the race to deliver high-speed wireless broadband service. And he said Clearwire -- which will retain its name and headquarters in Kirkland -- is "uniquely positioned" amid the "avalanche" of bad economic news.

In fact, Wolff said it is times like these when nimble entrepreneurial companies can take advantage of opportunities. The company also unveiled its new brand and tagline for WiMax service: "Let's be Clear."

"Clear was the natural choice because it is simple, commonly used word that has significance as it relates to communications services," Wolff said.

And Wolff also addressed competition from a technology known as long term evolution, saying that WiMax and LTE can co-exist. "Mobile WiMax and LTE have a lot in common," he said. "This is not a case where one technology will win and one will lose."

Wolff said that LTE will require significant spectrum resources and new network infrastructure, but added that the technology will certainly "gain traction." And because of its spectrum holdings, he noted that Clearwire could be well positioned if LTE turns into the global standard.

"In reality, this isn't the technology war that some have some made it out to be," he said.

Clearwire offers its WiMax service in Baltimore, with the Portland market ramping up this month. Atlanta, Las Vegas and other cities will be added in the coming months, with Wolff saying the company can leverage Sprint's infrastructure at below market rates in order to roll out service in a fast and cost-effective manner. It plans to upgrade most of its 46 "pre-WiMax" networks to the faster WiMax network next year.

Clearwire also named eight board members, including Clearwire founder Craig McCaw; Sprint CEO Dan Hesse; Sprint president Keith Cowan; Trilogy Equity Partners' founder John Stanton; Intel executive vice president Sean Maloney; former president of AT&T's network services Frank Ianna; former head of BT Global Services Jose A. Collazo; and former head of M&A at JP Morgan Dennis Hersch. Five other board seats will be added in the coming weeks.

In the call, Wolff repeated that the new Clearwire has the chance to "reinvent wireless." Those sentiments were echoed by McCaw, who serves as non-executive chairman.

"We are building a wireless broadband network that will stand the test of both time and competition. This is far and away the most exciting opportunity in wireless I have seen since the beginning of cellular in 1983," McCaw said.