No one likes disruptive technology, except the disruptor. Microsoft (MSFT), Google (GOOG), Dell (DELL), and Intel (INTC) are backing a new wireless technology that could be extremely troublesome for the country’s largest cable and telecom companies. As MarketWatch describes it the "breakthrough, tapping into an unused part of the nation’s airwaves, is politically charged because it threatens to shift the Internet-access business away from telecom and cable companies that are historically well-connected in Washington, throwing open the field to a brand new batch of competitors."
So, the Microsoft group has begun to lobby the federal government to take a close look at the new tech as an alternative to the broadband delivered by the likes of Comcast (CMCSA), Verizon (VZ), AT&T (T) and Time Warner Cable (TWC).
The battle for the airwaves could get ugly. "The telephone companies are terrified they’ll lose 40% of their wireless minutes, because you’ll be able to connect from work or home and bypass their wireless networks," said J.H. Snider, research director of the wireless future program at the New America Foundation, a Washington-based policy institute that has long advocated to allow use of white spaces.
The potential option to get broadband internet via a new alternate means comes as Sprint (S) is building out its wireless WiMax network and Verizon (VZ) is spending $23 billion to create a fiber-to-the-home network. Interestingly enough, Intel is one of the largest WiMax backers and its chips allow many PCs to work with WiFi, so it would appear to have a horse in at least three races.
Another company that could be hurt is new IPO Clearwire (CLWR) which saw its stock drop immediate after the shares opened for trading. The company is a publci pure play in WiMax.
Life could get very, very nasty for phone and cable companies. The new Microsoft assault would represent an entirely new way for consumers to get broadband access, and WiMax may as well. The tradition broadband providers can ill afford any real competition. They spent too much to get to the pole position in the race.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies the he writes about.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.