EarthLink has agreed to partner with Clearwire to offer EarthLink customers both high-speed fixed and mobile broadband service using Clearwire’s 4G network. The companies have also agreed they will remain open to extending the partnership to include Clearwire’s LTE services in the future. Although EarthLink’s wireless service will initially target consumers for in-home use, future product offerings will include mobile devices and new services for small business customers.
Founded in 1994, EarthLink was a leader in dial Internet access and it still has more than a million consumers who continue to use EarthLink for Internet access; however, in the last several years EarthLink’s portfolio has expanded to also provide business services. It currently serves more than 150,000 businesses with nationwide data and voice IP service coverage across more than 90% of the country. EarthLink also provides managed IT services, cloud computing, data centers, virtualization, security and applications.
MORE: EarthLink plans fixed and mobile wireless services over Clearwire’s 4G networks
Clearwire’s 4G network was initially built using WiMax technology, and in addition to its own retail brand, the company provides wholesale broadband services to other carriers, most notably including Sprint. In April 2012, Clearwire announced that New York City, San Francisco, Los Angeles, Chicago and Seattle will be among the 31 cities where the company will launch its TDD-LTE network during the first half of 2013.
In a statement, Michael Toplisek, executive vice president of products and marketing for EarthLink, said, “Customers are increasingly equating broadband services with wireless services and our wholesale agreement with Clearwire will allow EarthLink to offer the wireless products and services necessary to remain a leader in communications services. The 4G broadband speeds and urban and suburban network focus aligns well with our long-term strategy for growing our customer base.”
Our observations: We have previously discussed EarthLink’s evolution into a cloud services provider, and we agree that this partnership will serve EarthLink and its customers well. While the addition of mobile broadband access is a “nice to have” for consumers, mobile access is an essential portfolio element for providers who are serious about offering competitive cloud services.
