Comcast to buy Clearwire? Another odd rumor

Posted Nov 14th 2007 5:18AM by Douglas McIntyre
Filed under: Rumors, Consumer Experience, Competitive Strategy, Comcast Cl'A' (CMCSA), Verizon Communications (VZ)

A rumor that is almost certainly not true comes from Barron's. The publication says that it has heard cable giant Comcast (NASDAQ: CMCSA) might buy WiMAX start-up Clearwire (NASDAQ: CLWR).

While there are probably millions of obstacles to the deal, Comcast does need to come up with something to fight the telecom companies. Verizon (NYSE: VZ), in particular, seems to be taking away thousand of cable customers each week with its new FiOS high-speed internet product. The offering has broadband, phone, and TV service wrapped into one package. Along with the Verizon Wireless mobile products, the company can sell consumers four services. Comcast does not have that wireless piece.

Enter Clearwire. The company is building out a national WiMAX wireless broadband network that can connect phone handsets and PCs to the internet. Imagine if Comcast could offer that kind of roaming to its customers, and make wireless VoIP phone service a part of it. What a coup.

But it will probably never happen.

Douglas A. McIntyre is an editor at 247wallst.com.

Tags: Clearwire, CLWR, cmcsa, FiOS, inthenews, vz, WiMax