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Clearwire – Advantages and Disadvantages of WiMAX Internet

You have many options for signing up with an Internet provider and chances are that you’re looking for an Internet package that can offer reliability, high-speeds and quality from a good company. Among your many choices, you have dial-up at the low end, then DSL, cable and satellite.

Another option that you may have is Clearwire, a company that uses WiMAX technology and standards to bring the Internet into homes of people across the country.

Before you select Clearwire as your primary Internet service provider, there are a few advantages and disadvantages you must think about.

History and Growth of Clearwire

Founded by Craig McGraw in 2003, Clearwire’s headquarters are located in Kirkland, Washington. The company has exponentially increased the number of customers it serves in markets and, as of 2010, is currently expanding, creating deals with technology and telecommunications companies to bring WiMAX into further development.

For example, Clearwire received an investment from technology giants Motorola and Intel in 2006 in the hopes to accelerate the deployment of Clearwire’s WiMAX networks. In addition, Clearwire and Sprint Nextel formed a partnership in 2007 to expand into additional markets. Clearwire has also made deals with Time Warner Cable and Comcast, two cable broadband providers that serve the two largest markets in the United States.

What is WiMAX?

WiMAX stands for Worldwide Interoperability for Microwave Access. This is a protocol from the IEEE organization that can provide up to 40Mbps connection speeds. The protocol has several uses, including the ability to provide portable mobile broadband to entire cities throughout the United States. Residents and commercial subscribers can use it as a wireless alternatively to DSL and cable.

In fact, the possibilities for extending WiMAX into cities, homes and businesses are essentially endless. For example, customers in rural areas where DSL and cable are not available are able to obtain WiMAX services using Clearwire. Also, some cell phone providers and beginning to use 4G WiMAX as a replacement for 3G technologies.

The way WiMAX, and subsequently Clearwire, works is through the use of cellular towers. Like the cellular towers of Verizon, ATT, Sprint and others, Clearwire uses cellular towers to provide a point-to-point wireless connection over large swaths of cities and regions. When you’re signed up with Clearwire, you receive this tower signal directly, just as mobile phones connect to their cellular providers.

Clearwire Connection Options

Clearwire offers several basic residential and mobile packages if you’re looking to sign up for an Internet package that’s marketed as “super fast.” In fact, Clearwire markets residential and mobile packages as having download speeds of anywhere from 3 to 6 Mbps and bursts of over 10 Mbps, depending on your location and exact position in relation to Clearwire’s towers.

For individuals wanting a home wireless broadband package, Clearwire offers several at different monthly service charges. ClearPremium costs around $20 per month and offers speeds of up to 1.5 Mbps. Clearwire Premium, on the other hand, offers up to 2Mbps and costs around $25 per month. The company also has a “Value” plan that offers speeds under 1Mbps.

Clearwire also has bundled packages where you can pay for wireless broadband in conjunction with a home phone service. The home phone service, however, employs VoIP technology and costs around $25 in addition to your base package. For the home phone VoIP service, however, Clearwire offers unlimited calling to the United States and Canada.

You can also bundle Clearwire’s residential service with a mobile package in which you’ll receive a PC Card that allows you connect to the Internet on-the-go.

Plan Costs and Contracts

When you’re signing up for a Clearwire package, you must pay careful attention to the specific plan you’re ordering, the length of the contract and the amount of speeds you can get. For example, all of Clearwire’s wireless broadband plans require a 2-year service contract. However, all packages receive a discount for the first three months as well, at which point the plan increases for the duration of the contract.

For example, you can sign up with a Clearwire “Value” plan for $20, but this per-month rate increases about $15 after the three-month introductory period.

On the other hand, you can also sign up for “No Commitment” plans with Clearwire. These plans range from around $50 to $60 per month, depending on the specific package chosen.

Clearwire Controversies

Before you sign up with Clearwire, or any other broadband Internet company, it’s important to take a look at the history of the company in terms of controversies, claims and overall service. In its relatively short history since 2003, Clearwire has stirred up some major controversies with both consumers and service providers.

The first controversy occurred in 2005 when a Clearwire customer found out that she couldn’t use the VoIP service provider Vonage. When the Vonage phone service didn’t work, independent testing showed that Clearwire was blocking ports to prevent customers from signing up with secondary VoIP providers like Vonage.

Clearwire was also involved in a class-action lawsuit during 2009. Customers of the company maintain that Clearwire uses deceptive advertising practices to entice consumers to its services. Though Clearwire promises “super fast” Internet speeds, many consumers of the class-action lawsuit report experiencing speeds as slow as DSL and dial-up, in some cases. In addition, the lawsuit contends that many customers experienced frequent outages during which Clearwire services were not available.

A third controversy involves Clearwire’s advertising that it offers unlimited service. Many customers, as of October 2010, report having their wireless broadband speed throttled to as low as 250kbps once a customer has reached a certain point of usage. Once they use around 8 to 10 gigabytes, customers report that download speeds have been severely limited by Clearwire.

Overall, Clearwire is a viable option as an alternative to Internet providers of cable and DSL, especially for customers living in outlying or rural areas. Though Clearwire does have WiMAX on its side, you must separate the company from the greatness of WiMAX technology before you decide to sign up. You can read customer reviews and look at Clearwire’s terms and conditions carefully to be sure that you want wireless Internet instead of another broadband Internet package.

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