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Media, Communications, Internet

Google, Clearwire Forge Portal Deal


Google continued its headlong dive into the wireless communications market with a joint announcement on Tuesday that it is teaming with WiMAX operator Clearwire to promote its suite of applications among Clearwire's 350,000 subscribers.

The move is Google's latest foray into alternative Internet access technologies, which goes back at least two and a half years to when Google invested in Current Communications, a broadband-over-power-lines startup.

In the meantime Google's portal rivals such as Yahoo and MSN seem far less interested in promoting non-mainstream or emerging network technologies.

Kirkland, Washington-based Clearwire said it will begin migrating its current customers to Gmail and Google Calendar in the first half of 2008, and offer its customers access to Google Talk in the same time frame.

"We will migrate our customers who currently have Clearwire.net email accounts to Gmail and give them access to Google's communications applications via the web," said Scott Richardson, Clearwire's chief strategy officer.

Clearwire said it will use Google's AdSense for Search in future Clearwire portal applications.

The Clearwire deal is the second announcement in two days involving Google and a wireless communications business. On Monday Google said it upgraded its month-old application suite for Apple's iPhone.

And last August Google and Sprint Nextel announced that Google will be Sprint's portal of choice for its Xohm WiMAX network.

"Google's goal is to encourage more networks because the more networks there are, the more competition there is and the lower the price of access," said Tim Farrar, president of Telecom Media and Finance Associates. "That means more data will be transmitted and more advertising opportunities for Google."

Mr. Farrar said that Google's interest in the proliferation of online communications goes at least as far back as the search king's investment in Current Communications, a firm that provides Internet access via power lines.

In July 2005 Google, along with Hearst and Goldman Sachs, invested more than $100 million in Current, which at the time was a marginal player in the Internet access market.

"Whatever Google has planned for the 700 MHz auction I see them continuing to promote additional competition and additional opportunity for people to connect to the Internet," Mr. Farrar said.

While Google continues to promote network communications and emerging forms of Internet access at various levels, Yahoo and MSN have remained on the sidelines.

Yahoo previously signed long-term web portal deals with Verizon and AT&T, but many of those deals don't seem to be active today.

"Partnering with AT&T a few years ago was far less risky than some of the things that Google is doing now," Mr. Farrar said. "Google seems to be committed to promoting technologies regardless of their possibilities as standalone businesses."