South Carolina Announces Successful Bidders for its Statewide WiMax Spectrum

The South Carolina Educational Broadband Service (EBS) Commission has recommended leasing spectrum to service providers to create accessible broadband to the populace. Clearwire and Digital Bridge would be allowed to lease up to 95% of South Carolina’s ETV’s unused spectrum.

Both Clearwire and Digital Bridge have committed to offering WiMax technology across the state. In exchange, the two companies would pay nearly $143 million over the course of a 30-year lease into a state general fund, including $7 million upfront.

“The proposal is a great opportunity for South Carolina,” said Neil Mellen, a committee member. “State government will enjoy much-needed revenues for basic services, such as school teachers and public safety, while the lion’s share of the spectrum will be in the hands of those most capable of successfully building it out: dedicated commercial providers. That means broader access, expanded service and lower rates for Internet access throughout South Carolina.”

But Brett Bursey, director of the S.C. Progressive Network stated “This is taxpayer-funded, the millions of dollars South Carolinians have put into building up the broadcast system could and should have resulted in the nation’s first statewide free wireless system.”

After review by a Joint Bond Review Committee, the State Budget and Control Board will have the final say on the proposal next month.

Clearwire's Spectrum Holdings Could Fuel Its Strategic Investors' Wireless Ambitions

As Clearwire fends off a class action lawsuit and acknowledges they will need billions more of investment dollars to complete their nationwide build out, one asset they hold is still keeping their strategic corporate backers smiling.

Clearwire claims to hold more valuable spectrum than any other U.S. wireless operator. To investors such as Google, Comcast, Intel and Time Warner, the frequencies mean more than just airwaves to experiment with; they could provide the spectrum needed to fuel their own wireless network ambitions.

This could give these Clearwire investors a way to directly compete with incumbent wireless carriers – with or without Clearwire’s network. It could also put more rational competitors, like Microsoft and wire line telephone companies on the defensive since they do not have ready access these massive spectrum assets.

No matter where Clearwire is headed, it will be interesting to see how their spectrum is ultimately utilized.