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12 September 2007

Mobile satellite alliances boost Clearwire

The mobile satellite services (MSS) market, long in the doldrums, is experiencing one of its periodic spells of optimism, on the back of new spectrum and tie-ups with other technologies, and this time applications like mobile TV may ensure it is not just another false dawn. Hybrid offerings combining satellite and terrestrial technologies are the major hope for US operators, promising a lower cost base and more flexible range of services, even leading to a full quad play. This is the path being pursued by the holders of the relevant 2GHz spectrum, MSV, ICO and Terrestar, which are all assembling their much-needed partnerships. MSV is currently trialing WiMAX with Nortel; ICO, which is carrying out an important trial of DVB-SH hybrid mobile TV with Alcatel-Lucent, has now added Craig McCaw stablemate Clearwire, to its dance card.

ICO and Clearwire, both companies in which Craig McCaw has significant stakes, have just announced a collaboration on a mobile video trial using a combination of satellite and Clearwire’s WiMAX spectrum. The pilot will aim to test the value proposition and cost effectiveness of delivering an advanced interactive mobile video service to consumers, and will also study the technical feasibility of using Clearwire’s 2.5GHz spectrum and ICO’s 2GHz spectrum more efficiently in combination. Since Clearwire and Sprint are now pooling their resources in terms of network build-out in 2.5GHz, this could position ICO to gain one of the most coveted cellular partnership, Sprint Nextel, and creates a powerful ecosystem around Clearwire that also numbers the two satellite broadcasters, DirecTV and Echostar. The ICO trial with Clearwire is expected to begin in early 2008 in Raleigh, North Carolina and in Las Vegas, everybody’s favourite market for mobile video tests (mobile TV companies MediaFLO and HiWire are both trialing there).

Clearwire ‘ like Sprint ‘ is interested in the possibility of delivering interactive video and broadcast TV over WiMAX rather than relying on an additional or third party network such as MediaFLO. Bringing satellite into the equation could help to extend coverage and functionality rapidly, especially in areas where Clearwire does not want to build out itself. ICO is already testing Alcatel-Lucent’s DVB-SH system. ‘Our next generation wireless personal broadband networks are built to deliver data, voice and video over a single network,’ said Scott Richardson, chief strategy officer for Clearwire. ‘Working with ICO to trial an interactive mobile video element that can potentially enhance our service offering not only in areas where we don’t intend to build our own network, but that can also potentially enhance the use of infrastructure and spectrum where our coverage overlaps, makes a lot of sense.’

‘Mobile two-way video, advanced interactive navigation, plus emergency calling and messaging becomes an even more compelling value proposition when integrated with a wireless broadband network such as Clearwire’s,’ said Tim Bryan, CEO at ICO.

For the trial, ICO will integrate its Mobile Interactive Media (MIM) suite of services, devised with Alcatel-Lucent, with the Clearwire network. ICO MIM will provide multiple channels of mobile video to large screen devices.