If Craig O. McCaw gets his way, you'll be able to do all that, and more, in as little as three years' time. McCaw's Clearwire Corp. has amassed enough licensed radio spectrum to create a nationwide, wireless broadband network based on an emerging technology called mobile WiMAX -- a powerful cousin of WiFi. Clearwire got a big boost on July 5, when Intel Corp. (INTC ) and Motorola Inc. (MOT ) pumped nearly $900 million into the company.

The tech giants aim to turn WiMAX into a mainstream consumer technology and hope to make lots of money selling the chips, laptops, cell phones, and other gear that work with it. McCaw famously upended Ma Bell by building a cellular phone network in the 1980s, a business he later sold to AT&T (T ) for $11.5 billion. Now he could be poised to do much the same to today's cable, satellite, and telecom players by providing a cheaper alternative to the broadband services they currently offer. "Filling a need that others aren't addressing has always been a focus of the companies that I have been involved with," McCaw says. Not so long ago, McCaw's WiMAX gambit seemed less threatening to the entrenched players.

There were no industrywide standards for mobile WiMAX, so the equipment was too expensive to roll out on a large scale. But last year the industry adopted the long-awaited standards, which helped bring Motorola and Intel into the game. Add McCaw's control of one of the biggest chunks of WiMAX spectrum, and he seems well positioned. The cable guys and telcos profess themselves unfazed by McCaw's WiMAX ambitions. But you can easily imagine people preferring to subscribe to a Clearwire service that allows them online access anywhere rather than one that restricts them to their home. What's more, because WiMAX infrastructure is so much cheaper to build than traditional networks, Clearwire can likely afford to offer a nationwide mobile service for as little as $25 a month. Suddenly, paying $60 for Verizon Wireless' (VZ ) Broadband-Access service looks a lot less attractive.

This is not just a question of luring away rivals' subscribers, either. McCaw's WiMAX play also could put in jeopardy the billions of dollars the telcos and cable companies are investing to make their broadband networks faster and more reliable. For example, Verizon is spending $20 billion to $40 billion to roll out fiber-optic lines to homes over the next 10 or so years. Meanwhile, the cellular carriers have spent comparable amounts on so-called 3rd Generation networks that are supposed to let subscribers watch "real-time" TV on their phones, among other things. WiMAX won't necessarily make these investments redundant, but it could provide enough competition to make it hard for the carriers to recoup the billions spent.

Click Here to Continue Reading