Wireless

There's been a lot of talk in 2009 about the next generation of wireless technology, known as 4G wireless broadband, but the current generation of 3G wireless technology is far from dead.

For many wireless operators, especially those that have built their networks using the global standard GSM, the current 3G wireless technology called HSPA still has some legs left. And while many carriers are planning their 4G networks, hundreds of wireless providers throughout the world are also expected to upgrade existing network infrastructure with the latest versions of the 3G wireless technology to increase speeds and offer new services. And because these network speeds will match current 4G speeds, consumers will likely see no difference in capability.

For this reason, the next few years will likely continue to be all about 3G technology. And 4G services, where they will be available, will likely appeal only to niche audiences.

"The average consumer doesn't care about peak data rates or network acronyms," said Dan Warren, the GSM Association's director of technology. "They just care about the experience. They want to be able to watch YouTube or get live traffic updates on their smartphones. And they don't care whether it's a new network or a current network that is being upgraded."

Mobile operators around the world are seeing a huge growth in the amount of mobile data traffic across their networks. This trend is expected to continue as more consumers buy smartphone and jump onto the mobile Web. By 2014, mobile devices are expected to send and receive more data in one month than in all of 2008.

Three-quarters of this traffic will be attributed to Internet access, while nearly all the rest will be due to music and video streaming, the GSM Association recently said. The new usage patterns will put strains on carrier networks, and operators are planning now to keep up with demand. Already, AT&T, which is the exclusive carrier for the iPhone in the U.S., is struggling to keep up with the heavy data usage.

While 4G networks will certainly increase network speeds and capacity, these networks and the devices that can be used on these networks will not be built overnight. This is why many carriers who are looking to meet demands today are turning toward advanced 3G upgrades.

T-Mobile USA, the smallest of the major U.S. wireless operators, has adopted this strategy. The company is currently upgrading its existing HSPA network, which launched just last year, to HSPA Plus, the most advanced 3G technology available. It has already started testing the new service in Philadelphia. And the company expects to deploy the lion's share of its upgrade across its entire footprint in 2010.

Meanwhile other operators, such as Verizon Wireless and Sprint Nextel are looking toward 4G technologies.

To the 4th power: WiMax vs. LTE
Two technologies dominate the 4G landscape: WiMax and LTE. In the WiMax corner is a company called Clearwire, which is backed by Sprint and Intel, as well as the nation's biggest cable operators, Comcast and Time Warner Cable. The company is currently building its network and has 13 cities up and running with service.

In the LTE corner is the rest of the wireless industry, including at least 50 mobile operators worldwide that have already committed to LTE plans, trials or deployments. The first LTE networks, including one being built by Verizon Wireless here in the U.S., are expected to be rolled out next year. NTT DoComo of Japan and TeliaSonera of Sweden have also committed to deploying LTE next year. That said, major network expansions aren't expected until at least 2011.

One of the problems that 4G carriers will face is that initially their networks will be islands of service. And it will take years for operators to blanket the country with their services. For example, Clearwire has mostly deployed its service in cities, such as Baltimore, Philadelphia, and Chicago. Verizon will likely do the same thing with its LTE network. And then the networks will spread from there. Verizon expects to launch 25 to 30 with 4G service in 2010.

Another problem 4G operators face is a dearth of new devices. Clearwire's WiMax service has been available for more than a year in some cities, and it still only offers USB modems, PC cards, subscriber modems and WiMax-enabled laptops. So far no one has started selling mobile devices, such as WiMax embedded phones. In fact, in January Nokia, one of the initial eco-system backers of WiMax, canceled its N810 WiMax Edition tablet. More devices aren't likely to be developed until the network is more extensive. Sprint is offering a dual-mode service that allows laptop users to switch between its 3G mobile broadband service and the 4G WiMax service, where it's available. But the service is only available for laptops.

As for LTE, no devices exist today because no LTE network exists. Since most of the world's wireless operators will likely use LTE for their next-generation networks, it's a fair bet that there will eventually be a plethora of LTE devices. And carriers, such as Verizon, will likely embed dual-mode chips that work with 3G networks, too. But given the fact that new wireless technology first shows up in laptops and then moves to phones, it's unlikely that consumers will see any LTE-enabled mobile devices for at least another 18 months to two years. And after that, it could take many more months to fill the pipeline.

Meanwhile, there are already 1,600 HSPA-enabled devices on the market, including smartphones, Netbooks, and laptops, according to the GSM Association. There are currently 321 HSPA networks across 120 countries worldwide, and 285 of these networks are commercially live, supporting more than 167.5 million connections.

And while Clearwire reported it added 173,000 new WiMax subscribers in the third quarter of 2009, the GSMA reports that more than 9 million new HSPA connections are added globally every month, with about 1.3 million of these connections coming from the U.S.

The need for speed
Of course, it's true that current 3G technology is considerably slower than 4G networks. Today's 3G technology, whether it is HSPA or EV-DO, offers typical download speeds of between 400 Kbps to 700Kbps. But the latest version of HSPA, called HSPA Plus, offers average download speeds between 4 Mbps and 6 Mbps. This is the same download speed range that Clearwire's WiMax service offers today.

It's difficult to compare these speeds with LTE, since there are no commercial deployments of LTE. But some experts say average speeds for LTE will initially exceed the 4Mbps range. Some people are expecting the service to offer average speeds around 15 Mbps to 20 Mbps.

Because there is little difference between WiMax and HSPA Plus in terms of speed, many operators are opting to invest in upgrading their networks to this technology while they plan for their eventual LTE migration. The GSMA says there are now 56 networks globally deploying HSPA Plus. And 28 of those networks are now live.

T-Mobile USA, as mentioned earlier, is one of them. AT&T initially indicated it was looking into HSPA Plus, but the company has more recently backed away from those claims. Instead, the company has said it is upgrading to a different version of HSPA called HSPA 7.2. AT&T's chief technology officer, John Donovan, said at the CTIA Wireless trade show last month that AT&T will start its LTE upgrade in 2011.

Mark Siegel, a spokesman for the company, said AT&T is keeping its options open.

"We are trying to stay flexible in how we increase 3G speeds as we transition to LTE," he said in an e-mail.

This means that T-Mobile is likely to be the first major U.S. carrier to compete against Clearwire's WiMax service.

T-Mobile has been criticized for entering the 3G market in the U.S. late, but the company has been working aggressively to catch up. At the beginning of 2009, T-Mobile could reach about 100 million people with its 3G wireless service. By the end of the year more 200 million people will have access to its network, according to Neville Ray, senior vice president of engineering operations for T-Mobile.

By contrast, Clearwire's WiMax service currently reaches about 30 million U.S. residents. And the company plans to reach about 120 million by the end of 2010.

As for subscribers, Clearwire said that at the end of the third quarter of 2009 it had about 555,000 subscribers, which includes people who have subscribed to the service via its partners Sprint, Comcast, and Time Warner, which are reselling the service. T-Mobile finished the third quarter with a total of 33.4 million customers.

"We have been rapidly expanding the reach of our network over the past 12 to 18 months," Ray said. "And in 2010 we are looking to jump ahead with a leading 3G experience. The only thing that will come close are data sticks from Clearwire. And their service is limited geographically."

Ray said the HSPA-Plus strategy allows T-Mobile to better compete against AT&T and Verizon, because it allows T-Mobile to stretch its 3G investment while still offering faster and more ubiquitous coverage for consumers.

"We may have been a little late to the 3G dance," Ray added. "But clearly the mobile data explosion is rapidly growing today. And our plan for 2010 will put us in a leading position to handle these demands."

T-Mobile USA hasn't said for certain that it will use LTE when it eventually builds a 4G wireless network. But considering that its parent company in Europe, T-Mobile, has committed to using the technology, it's a safe bet the U.S. affiliate will as well.

Ray said for now it's better for T-Mobile to leverage HSPA's existing device ecosystem. The company is already offering several devices, such as the Motorola Cliq, the HTC myTouch, and the Samsung Behold that are equipped with the faster HSPA 7.2 technology. And he said that T-Mobile expects to have HSPA Plus handsets on the market in 2010.

"Because there are a large number of operators throughout the world upgrading to HSPA Plus, it's already on the device roadmaps," he said. "This means we can bring the advanced 3G experience to consumers in mobile devices in 2010. And that is not the case with either LTE or WiMax."

The next generation of wireless may be on its way, but it's a slow road. In the meantime, consumers will likely get more out of faster 3G networks, such as T-Mobile's network than the budding services from Clearwire or Verizon Wireless. It will certainly be a fun horse race to follow.

Mobile chip maker Qualcomm said Thursday that it has started providing new wireless chipsets that combine 3G and 4G wireless technology to help carriers transition to the next generation of wireless technology.

The company said Huawei Technologies, LG Electronics Novatel Wireless, Sierra Wireless, and ZTE are among the first mobile-device manufacturers to test the new chips.

Qualcomm said that devices that use the new chips could be available in commercial products starting in the second half of 2010.

The new chips will allow wireless phones and other portable devices to switch between a 4G wireless network using LTE, or long-term evolution, technology and HSPA Plus, a 3G wireless technology.

This is important because many carriers around the world plan to upgrade their networks to 4G using LTE. But these networks won't be ubiquitous overnight, and consumers will not be able to get 4G signals everywhere and will need to roam on 3G networks so they can have coverage almost everywhere. This means that devices will need chips that allow them to switch between networks.

HSPA Plus is the next iteration of 3G wireless technology that can provide download speeds of up to 21 megabits per second. Many wireless operators, including Telstra of Australia and AT&T in the U.S., are upgrading their networks now. These carriers eventually plan to upgrade their networks to LTE.

Qualcomm also announced it is providing a new set of mobile-device chips to manufacturers for testing that will add more robust multimedia features to new smartphones.

This new chipset family supports high-definition video recording and playback, enhanced graphics, and an overall chip design that is optimized for a highly responsive Web experience. Qualcomm expects phone makers to have devices that use the new MSM7x30 family of chipsets commercially available by the end of 2010.

The new chipsets will allow phones to operate on the most advanced 3G wireless networks, such as those running the latest generation of HSPA and EV-DO (Evolution Data Optimized).

The chips will support handsets that use the Android, Brew, Symbian, and Windows Mobile operating systems. Some of the features that the new chips could enable include a 12-megapixel camera, 720p video recording, and 3D gaming.

Clearwire investors are pumping in another $1.5 billion into the venture to help pay for the company's nationwide 4G wireless network, according to The Wall Street Journal.

The article cites two unnamed sources "familiar with the matter," who said that Sprint Nextel, Comcast, Intel, Time Warner Cable, and Bright House Networks have all agreed to contribute an additional $500 million to the cause. Google, which had initially invested with these other companies, is not participating in this funding round, the article said.

Sprint and these other partners invested about $3.2 billion in Clearwire about 18 months ago when a new joint venture was developed to build the Clearwire network.

In addition to cash, Sprint also gave Clearwire access to its 2.5 GHz spectrum. Sprint, Comcast, and Time Warner have already begun reselling the Clearwire WiMax service in areas where Clearwire has already built its network.

Clearwire now offers service in several cities including Baltimore, Las Vegas, Chicago, and Philadelphia.

There is little doubt that consumers' appetite for faster wireless speeds is growing. But Clearwire is building its network using WiMax technology while its major competitors, Verizon Wireless and AT&T, have chosen to use a competing technology known as LTE or Long Term Evolution.

Verizon is already building its LTE 4G network and will have commercial deployments in 2010. AT&T plans to continue upgrading its 3G network with newer technology, but has said it eventually plans to move to LTE. Most other major wireless operators around the world have also settled on using LTE for their next generation networks.

Clearwire does have a good head start in terms of deployments. But it's unclear if that will be enough to beat competitors, such as Verizon Wireless, in the long run.

But in order for Clearwire to even have a chance in competing with Verizon and AT&T, it will need a fully built nationwide network. And that takes a lot of money; money that Clearwire is spending very quickly. As of the second quarter of 2009, Clearwire had projected a cash burn of $1.5 billion to $1.9 billion for 2009. The company said in August it had burned through $646 million of its cash. But as it spends money, the company is also losing money. For the second quarter, Clearwire announced a net loss of $73.4 million on revenue of $63.6 million.

Clearwire will report third quarter earnings on Tuesday.

The Google factor
Google's decision not to invest in the next round of investment could be an indication that the search giant is losing faith in the technology. In a recent interview with CNET News, Andy Rubin, who heads up Google's mobile operating system division, said Google is planning its mobile future around LTE and not on WiMax.

That said, a Google spokesman told Reuters that the company still supports Clearwire's efforts to build a high-speed wireless network using WiMax. But the spokesman said the best way for Google to offer support is through product and strategic cooperation rather than investing more money.

Google also recently announced a strategic partnership with Verizon Wireless. The companies worked closely to launch a new 3G wireless Android device called the Droid. And the two companies will likely work closely to develop other new products and services on Verizon's new 4G network.

By contrast, Clearwire's other investors have far too much at stake now to abandon the network and the WiMax technology.

Intel has been a big backer of WiMax from the beginning. And the company has already invested millions of dollars in developing products. Sprint has also bet big on the WiMax technology, and the company is too far down the WiMax path to completely drop it. The cable companies Comcast and Time Warner, which are reselling Clearwire's service to their cable customers, have no other choice at this point, but to stick with the WiMax plan. The last thing these companies want to do is build their own wireless network, and they desperately need a wireless broadband service to compete with their phone company rivals.

German phone giant Deutsche Telekom is looking to jump into the 4G wireless market in the U.S. through partnerships with U.S.-based service providers, according to a report by Bloomberg News.

Bloomberg reported Tuesday that Deutsche Telekom is looking to beef up its presence in the U.S. wireless market by investing in Clearwire, a company that is building a 4G wireless network using a technology called WiMax. Sources also told Bloomberg that Deutsche Telekom is also talking to Metro PCS, which recently acquired spectrum to build its 4G wireless network.

Deutsche Telekom already owns T-Mobile USA, the fourth-largest wireless carrier in the U.S. But the carrier's growth has remained flat for several quarters. And the company hasn't yet announced plans for its next-generation network.

Last week, rumors resurfaced that Deutsche Telekom was looking to buy Sprint Nextel. Sprint is the third-largest wireless operator in the U.S. and has been struggling the last few years to retain customers. The idea behind a potential buyout of Sprint is that it would give Deutsche Telekom more subscribers, which could help it compete more aggressively against the two largest wireless carriers in the U.S., AT&T and Verizon Wireless.

But now it looks like the German telecom giant could be looking for a more cost-effective way to increase its presence in the U.S. market.

Partnerships with Clearwire and MetroPCS would cost the German phone company much less than purchasing Sprint outright, and it would be a lot easier than trying to digest another wireless provider.

Buying Sprint Nextel would likely become an integration nightmare for Deutsche Telekom. Sprint Nextel is already the product of what many consider one of the worst telecom mergers ever. Sprint bought Nextel in 2005 for $35 billion. And for the past four years, the company has struggled to integrate two different wireless networks. Sprint's network operates using a technology called CDMA, while Nextel uses a technology called I-DEN. T-Mobile USA uses GSM, which would introduce a third type of technology into the mix.

But if 4G access is what Deutsche Telekom really wants, then a partnership with Clearwire makes sense. Sprint owns about 51 percent in Clearwire. Last year, the companies created a joint venture combining assets from both companies. Clearwire, which has already begun building its nationwide 4G wireless network, is using 2.5 GHz spectrum that is owned by Sprint.

Clearwire said in August that it would spend between $1.5 billion to $1.9 billion in 2009 to expand its network. Deutsche Telekom could provide more funding for this endeavor in exchange for access to the network, Bloomberg reports.

Clearwire has already made similar deals with other investors. Last year, cable companies Comcast and Time Warner Cable were among investors that provided the company with $3.2 billion in funding. Google and Intel have also invested in Clearwire.

As the Clearwire network comes online, Comcast and Time Warner Cable have each announced they will offer mobile wireless broadband service using the Clearwire network in areas where they offer cable service.

A deal with MetroPCS, which sells prepaid wireless service, could help Deutsche Telekom get access to a 4G wireless network that will use a more widely adopted technology called LTE or Long-Term Evolution. MetroPCS acquired spectrum in the 700 MHz wireless auction, and it has said that it plans to build a 4G network using LTE starting in 2010. Verizon Wireless, the nation's largest mobile operator, which also acquired spectrum in the same 700 MHz auction, is also building a 4G wireless network using LTE.

Clearwire Communications has created a sandbox more than 20 square miles in size where developers can play with WiMax.

Clearwire announced on Tuesday the launch of the largest test area yet for its 4G WiMax service in Silicon Valley. Covering a wide area from Santa Clara to Mountain View to parts of Palo Alto, the company's Clear 4G WiMAX Innovation Network will let developers test the mobile broadband network on a large scale.

First announced in April by Clearwire, the Clear 4G WiMAX Innovation Network is seen as a testbed to prepare for the launch of commercial WiMax service in the San Francisco Bay area next year.

The 20-square-mile service will hit the campuses of Intel and Google, two investors of Clearwire's 4G WiMax network who've already begun their own own internal 4G testing. Cisco Systems, which will provide equipment to Clearwire, will get coverage in a few months as the network grows.

To play in the new WiMax sandbox, developers must register with Clearwire's development program and describe the WiMax ideas they'd like to pursue. Developers would also need to buy a Clearwire WiMAX USB modem for $49.99. Clearwire says it will provide the service for free to a limited number of qualified developers prior to the commercial launch.

Clearwater will also join and help sponsor the Sprint Open Developer Conference running October 26 to 28 in Santa Clara. The company encourages developers working with Clear 4G WiMax to attend the conference to learn more about the service.

Clearwire touts its Clear 4G WiMax service as offering peak download speeds of up to 10 Mbps, with an average of 3 Mpbs to 6 Mbps. As a comparison, the company says that today's 3G networks can only reach speeds of about 600 kbps to 1.4 Mbps.

WiMax has faced tough competition from LTE for the battle to become the wireless 4G standard. Backed by AT&T and Verizon Wireless, LTE is sometimes forecast as the ultimate victor with potentially the more dominant share of the market. But WiMax is also expected to grow as deployments ramp up.

Big Internet service providers don't seem to be interested in applying for federal stimulus funds, but smaller players like Leap Wireless are looking at the grant program as an opportunity to provide wireless service to underserved populations.

Prepaid wireless carrier Cricket Communications, which is owned by Leap Wireless, on Monday filed an application with the nonprofit organization One Economy for $8.6 million to help it expand a program called Project Change Access. This project, which launched last fall in Portland, Ore., has helped low income residents get online to improve their access to education, job training programs, health care, and social assistance, according to Leap.

The federal funding is expected to pay for about 80 percent of the cost of expanding the program to five other cities. Specifically, the plan is to provide high-speed wireless Internet access to 23,000 low-income families in Baltimore, Houston, Memphis, San Diego, and Washington, D.C.

Leap said it submitted its proposal to the National Telecommunications and Information Administration, which is overseeing the allocation of $7.2 billion in broadband stimulus grants. These grants are part of the bigger $787 billion stimulus package that Congress passed earlier this year. The government recently extended the application deadline to August 20 for applications for the broadband stimulus grants.

Much of the money is intended to help bring broadband access to rural areas where it's traditionally been difficult to get broadband service, as well as help provide affordable access and education to people who can't afford broadband access.

What makes Cricket's application interesting is that many larger Internet service providers and wireless operators are not applying for funds.

According to a recent article in The Washington Post, AT&T, Comcast, and Verizon Communications aren't expected to apply for funds at least in the initial round of funding. The companies aren't talking publicly about their decision. But the Post reported that the companies are leery about possible strings attached to the federal money that would include Net neutrality conditions. The companies also supposedly don't want to deal with unwanted scrutiny from the government and the public on how it builds out its network.

"We are concerned that some new mandates seem to go well beyond current laws and FCC rules, and may lead to the kind of continuing uncertainty and delay that is antithetical to the president's primary goals of economic stimulus and job creation," Walter McCormick, president of USTelecom, told the Post. USTelecom is a trade group that represents AT&T and Verizon.

Meanwhile, some companies affiliated with these bigger service providers are expected to ask for grant money. Clearwire, a company that is backed by some big service providers like Comcast, Time Warner Cable, and Sprint Nextel, said it plans to apply for stimulus grant money. But an executive recently said that the money received for broadband stimulus would have to be used outside its current expansion plan.

Even though Verizon doesn't seem interested in taking any government money now to help build networks to reach underserved customers, the company says its new 4G wireless network will reach more rural customers than its existing wireless network. And due to conditions established by the Federal Communications Commission on spectrum Verizon will use build this network, Verizon will have to make the 4G network more open than its traditional wireless network.

Still, even as Verizon pledges to offer more wireless access to rural customers, it is actually selling off traditional phone lines in rural areas. And even though it is required to make its 4G wireless network more "open," the company still opposes new rules or legislation mandating Net neutrality.

Verizon Wireless announced Friday that it has completed initial testing of its 4G wireless service in Boston and Seattle.

Using a new technology called Long Term Evolution (LTE), Verizon was successfully able to complete data calls in Boston and Seattle, the first two cities where the company will deploy its service. Verizon is using the 700 MHz spectrum it bought an FCC auction to build the network. The company plans to start offering the service commercially in 2010, providing service for up to 100 million people in 30 markets. The company plans to have the entire nation covered with 4G service in 2013.

As part of this initial test, Boston and Seattle each have 10 LTE 4G cell sites up and running on the 700 MHz spectrum. Verizon selected these markets because of their geographic configuration of suburban and urban areas as well as the areas' high-technology population.

The LTE technology promises to be much faster than current 3G technology and the company expects to deliver services 15 to 100 times faster than these other wireless networks. The actual speeds of the technology have yet to be seen.

Verizon will be competing with Clearwire and its partners, which are already rolling out commercial service for their 4G wireless network that uses a technology called WiMax. Like LTE, WiMax also greatly improves wireless transmission speeds. Clearwire has already launched its service in Atlanta, Baltimore, Las Vegas, and Portland, Ore. And it will add another 10 markets in the next couple of months.

Cable providers Comcast and Time Warner Cable, which invested in Clearwire, will be reselling the service in their cable territories. Meanwhile, Sprint Nextel, which is also a Clearwire partner, is already reselling the service along with its own 3G wireless service throughout the Clearwire territory.

Verizon first mentioned Boston and Seattle as the first two cities to get LTE during its quarterly conference call with investors in July. So far, the company hasn't said much about how the LTE service will be sold and priced. Currently, Verizon offers 3G wireless using a technology called EV-DO. That service is about $60 per month for up to 5GB of data per month.

The Clear WiMax service from Clearwire starts at $20 per month for in-home wireless broadband. And its mobile Internet plans start at $40 per month. Customers can also get a day pass for $10. The company also allows customers to add voice service to their in-home package for $25 per month.

This was originally posted at ZDNet's Between the Lines.

Clearwire said Tuesday that it expects fourth-quarter net subscriber additions to ramp as it rolls out its 4G WiMax service into more markets. That tipping point will be critical to the company's success--and possibly its survival.

On a conference call with analysts, Clearwire CEO Bill Morrow said that he was pleased with WiMax uptake in new markets such as Las Vegas. Morrow added that "fourth-quarter net subscriber additions will be higher than all 2009 quarters combined."

That's good since Clearwire projected a cash burn of $1.5 billion to $1.9 billion for 2009. So far the company has burned through $646 million (statement). Clearwire had $2.5 billion in cash as of June 30. If the fourth-quarter 4G customers don't roll in, Clearwire may be cutting it close with its cash burn. Morrow and CFO David Sach cited Clearwire's strong balance sheet, but Moody's has it on its "bottom rung" list of companies with weak liquidity.

Clearwire rolled out its Atlanta WiMax service in June and followed up with Las Vegas in July. The company plans to cover 30 million people by the end of 2009 as it launches 4G WiMax services in markets ranging from Philadelphia to Seattle to Maui and Honolulu to various locales in Texas. Clearwire--along with partners Sprint, Comcast, Time Warner Cable, and Google--is betting on WiMax for 4G service while other much larger rivals such as AT&T and Verizon are betting on Long Term Evolution (LTE) networks.

Clearwire is planning to emerge as a 4G service wholesaler with big partners being the key distribution channel.

For now, Clearwire's results show the company is in a waiting game. It's a small wireless provider, facing high churn rates (some related to moves to 4G), and the plan is to leverage the distribution heft of partners such as Sprint.

The company reported a second-quarter net loss of $73.4 million, or 38 cents a share, on revenue of $63.6 million, up 9 percent from a year ago. Wall Street was expecting a loss of 39 cents a share on revenue of $65.2 million. Clearwire shares slid in afterhours trading.

Clearwire executives said the company will be aggressively hiring workers as it rolls out services. Capital spending will also increase in the second half of 2009. The company has big suppliers such as Cisco, Huawei, Motorola, Samsung, and Ciena that can enable Clearwire to cut equipment costs.

By the numbers:

• Clearwire added 12,000 net subscribers in the second quarter for a total base of 511,000, up from 461,000 a year ago.

• Average revenue per unit was $39.47 on par with a year ago.

• The second churn rate was 2.8 percent, up from 2.6 percent a year ago. Clearwire expects churn to continue to trend higher.

• Clearwire has 23.1 million points of presence, up from 16.8 million a year ago.

Clearwire, which is using Sprint Nextel's 2.5GHz spectrum to build a nationwide 4G wireless network, announced Monday 10 more markets that will get the company's Clear WiMax wireless broadband services starting September 1.

Eight of the newly announced cities are in Texas: Abilene, Amarillo, Corpus Christi, Lubbock, Midland/Odessa, Killeen/Temple, Waco, and Wichita Falls. The other two markets are Boise, Idaho, and Bellingham, Wash.

These 10 markets will join four other officially launched WiMax markets: Atlanta, Baltimore, Las Vegas, and Portland, Ore.

Some of the additional markets planned to launch in 2009 include Chicago, Charlotte, N.C., Dallas/Ft. Worth, Honolulu, Philadelphia, and Seattle.

Clearwire says it's on track to launch 80 markets by the end of 2010. In 2010, it plans to roll out service in New York, Boston, Washington, D.C., Houston, and the San Francisco Bay Area among others.

It's important for Clearwire to launch more markets, especially in major cities where its joint venture partners can also resell the service. Comcast, Time Warner Cable, and Bright House Networks have each invested in Clearwire, along with Google and Intel. Altogether the companies pitched in $3.2 billion. Comcast and Time Warner Cable have already announced plans to start reselling the WiMax service in areas where they offer cable service. These cable companies plan to bundle the 4G wireless broadband service with their existing high-speed broadband services.

Sprint Nextel, another major Clearwire partner, is also reselling the service combined with its 3G wireless service in some markets, such as Baltimore.

Clearwire uses a technology called WiMax, which offers faster speeds than current 3G wireless technologies, but offers wider coverage than other high-speed wireless technologies such as Wi-Fi. Clearwire claims that it can provide up to 4 megabits per second for downloads and 500 kilobits per second for uploading, which is more than double what consumers can expect using a 3G wireless connection.

The Clear WiMax service from Clearwire starts at $20 per month for in-home wireless broadband. And its mobile Internet plans start at $40 per month. Customers can also get a day pass for $10. The company also allows customers to add voice service to their in-home package for $25 per month.