Happy 4G Hunting: Verizon to Take On Clearwire for #1 Market - the Empire State of LTE

Includes: S, VZ
by: Ari Zoldan

Congratulations Clearwire (CLWR) for “successfully” deploying a WiMAX network in New York [City]. The first “4G” network in NYC is theirs, but all I can really wish them is good luck on their endeavor. In a few months' time, they will have the sort of competition that can really call them out on the question of quality while providing an alternative method of service.

The fact that they are the first 4G provider in the nation's #1 market should get the city's more technologically savvy to immediately sign onto their service, prying them away from the competition– but only initially.

Thanks to Clearwire’s targeting of Generation Y-ers, it’s safe to say that they won’t be “tying them down” with a contract, leaving these Gen Y-ers free to switch carriers when a better option – like the usage of LTE technology – comes along.

Clearwire is making the lethal marketing faux pas of not locking in their prime consumer base at the benefit of coming off as a nicer, gentler service provider that won’t try hurting anyone with a mean, scary contract with words in tiny print at the bottom. It may help, it may not, but they – and the rest of the technological world – should find that out in about two months.

Two months isn’t too long considering the rate that Clearwire’s marketing campaign is working at. They have yet to advertise on a large scale in NYC; there aren’t any commercials, billboards, or print/online ads available to be shown to the public-at-large yet.

Oddly enough, their schedule has them set to start marketing later in October, just a month before Verizon (NYSE:VZ) rolls out with their LTE technology in 25-30 testing markets – this according to their official website, the LTE Innovation Center.

New York City was, strangely enough, something along the lines the 40th city that Clearwire deployed WiMAX service in. Hopefully Verizon won’t make the same mistake by starting out with smaller cities. Verizon already has the kind of customer loyalty that wouldn’t, most likely, even be hindered too greatly if their LTE technology has some initial kinks in their system.

Even though Sprint (NYSE:S) is the majority shareholder of Clearwire, the brand names aren’t going to be affiliated with each other. The current lack of brand recognition is going to take months (at least) to get past.

May Clearwire perform to the best of their ability -- not that there is much to have faith in. Nonetheless, we should wish them luck in their WiMax network endeavors. As to my fellow New Yorkers, I wish you happy 4G hunting. By the end of the year we should have just as many carriers to choose from as Boston.

Disclosure: Author long VZ

About this article:

Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here