The Change Mariner

Wireless Broadband: Craig McCaw's Secret Plan

BusinessWeek Online:

Although McCaw won't say what he's up to, the deals have again made him the talk of telecom.

The wireless broadband technology he's investing in has the potential to be one of the most disruptive forces in the communications industry in years. Cable and phone companies have dominated the broadband business so far because offering speedy Net access has required multibillion-dollar investments in a sophisticated communications network. Now, however, the economics of wireless broadband could shatter that duopoly. For less than $10,000, an entrepreneur can start offering broadband within a limited area, typically an eight- to 10-mile radius. Already, that has made the technology attractive in lightly populated regions, where it can cost phone and cable rivals four times as much to offer service. Over the next two years, the costs of wireless broadband are expected to drop to the point where it can be competitive with traditional wired service anyplace in the country. "We think this is a tremendous opportunity for the telecom industry to change the paradigm," says John Marinho, a vice-president at equipment maker Lucent Technologies Inc.

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