Firms that measure Internet traffic agree: these days, Google owns two-thirds of the US search market. Yahoo sits in a distant second place spot, with Microsoft and the rest of the search world trailing far behind.

The struggle for search supremacy probably ended once Google scaled to reach peak performance for queries, however many years ago that happened. Google is a verb, much to the dismay of the search advertising company’s marketers and brand experts.

Some may wonder why we call Google a search ad company instead of a search engine. Google defines itself this way, in its SEC filings. Their contextual ad business pumps nearly all the revenue into their coffers, billions of it each year. Search ads are the business, which they do well.

And yet, even Google witnessed a slight cooling of profitable clicks on ads. All part of the strategy, as CEO Eric Schmidt would aver; Google wants fewer clicks, wants them to be quality clicks for robust keyword bid rates, wants people to perceive value at every landing page where a click leads them.

That’s a good thing, but not enough of one, not when an entire frontier of millions upon millions of potential ad clickers wander around every day with wireless, web-capable devices. The Internet on mobile devices is ok, if you’re into text.

Add in images, maybe some video, and the typical person will need a side order of patience while waiting for the content to arrive. People put up with slow on wireless because it’s the same everywhere, at least until the big dogs Verizon and AT&T roll out their 4G networks.

Google wouldn’t mind being in front of those two. As they explained on the official Google blog, their investment in Clearwire, which is absorbing Sprint’s WiMax initiative, represents an investment in the future.

"We believe that the new network will provide wireless consumers with real choices for the software applications, content and handsets that they desire," Larry Alder wrote at Google.

As a frontrunner with one of the world’s top brands, Google poses the most likely choice for people hitting Clearwire’s network. Google did some groundwork already, gaining a deal with Sprint to be the portal for Xohm, the WiMax effort Clearwire will absorb.

The big G will be a presence on WiMax, without question. Put aside the talk of openness and Android for the moment. Remember where Google gets about 99 percent of its revenue.

If a low cost entry into a high-speed Clearwire-operated WiMax network is going to happen, it will be with Google providing some of the cushion. Google can afford to help its Southeast Asia hardware developers make Android-powered devices less expensive; Google can’t afford not to do so.

Reaching people with a connection, content, and ads means providing the way to stay connected. The investment in Clearwire by Google shows the next step toward doing that. Who knows? If it works, Google could be on the way back to those $700 per share days they enjoyed not too long ago.

If that happens, it will come not just from having ads in people’s pockets. WiMax’s range provides a broadband option that should reach areas currently underserved by existing cable or other broadband providers.

See, WiMax may open up a lot of customers to using the Internet more often. Faster access leads to greater demand, which we have seen over the past decade. Imagine a whole new market of customers gaining regular high-speed access for a minimal cost, and the opportunity that presents to advertisers.

That should excite hard-working business owners. The next economic recovery could come on a wave of expansion, with Google providing some of the rush as they help WiMax expand to its audience.

Once the accountants and lawyers have their way with the process, the merged entity should be a $12 billion venture building the WiMax network that Sprint promised in 2007. WiMax offers 10Mbit connections over its range, according to Wikipedia, with faster speeds available at shorter distances.

The Wall Street Journal listed several firms backing Sprint’s efforts. Google and Intel on the tech side, and Comcast and Time Warner from the cable world, will pump $3.2 billion into the combined Clearwire business.

Google signed on to Sprint’s plans last year. The search advertising company inked a deal to provide the central portal Sprint customers will land on when signing in to Xohm. Google’s aspirations in the mobile market also include the software side of wireless devices, as the company pushes its Android platform for those developers.

“The deal finally gives Sprint the outside cash they needed, and gives Time Warner Cable, Comcast and Brighthouse Networks the ability to resell 4G wireless broadband,” said BroadbandReports. “The deal was supposed to be announced in April, but the complicated negotiation process took longer than expected.”

Om Malik suggested a little bit of panic motivated this deal. “The cable companies, Google and Sprint are all playing from a position of fear,” he said, and also noted the Xohm name would vanish in favor of Clearwire’s brand.

The competition from wireless giants AT&T and Verizon probably provided that fear. Both companies want to expand what they offer customers as they too ready next-generation high-speed wireless services. Sprint may be rushing to stake out ground first and grab some market share ahead of them.

While both companies plan to continue building WiMax solutions separately, news of Sprint pushing Clearwire aside raises more questions about WiMax deployment than it answers.

An AP report said the partnership would have Sprint’s WiMax service complementing the smaller Clearwire’s offering. The end of the pairing may give Clearwire founder Craig McCaw headaches to complement his sleepless night instead.

"The termination of the agreement certainly dramatically impacts the longer-term financial pressures on Clearwire and its aggressive build-out strategy," analyst Christopher King of Stifel Nicolaus said in the report.

Though the rollout of Xohm, Sprint’s WiMax service, appeared in doubt a month ago, later news about Xohm indicated it would continue, despite WiMax booster Gary Forsee being pushed out of Sprint’s CEO position.

Few should be surprised at the name mentioned as a possible partner for Clearwire now that Sprint has left the picture. Yes, CNNMoney has invoked the Google name, as Clearwire could handle the deployment and the service while Google does its content and ad serving thing.

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The best news about Sprint offering WiMax suggests that the project will launch. Recently a Sprint executive told a conference audience the service would come and tear down the walls to high speed wireless access.

How Xohm will be structured to do so from a corporate viewpoint could change. Sprint’s current search for a new CEO, coupled with a rough third quarter that saw subscribers and net income plunge, may require Xohm to zoom out of Sprint.

The Wall Street Journal said Xohm could be spun out as a separate unit. Clearwire, a wireless startup shepherded by Craig McCaw, has been mentioned as a possible partner for Xohm.

The promise of WiMax for Internet users, particularly those in rural areas, makes it a compelling technology. It has a far greater range than WiFi, and offers practical connections of 2 to 10 Mbits/s.

Google has been associated with Sprint for the Xohm project by taking a role in building a portal for Xohm users. It has been reported that the work between Google and Sprint could extend to Google’s mobile software appearing on phones offered by Sprint for its subscribers.

Clearwire Finds Partners

The agreement will allow both satellite companies to offer Clearwire’s high-speed Internet service to their customers. Clearwire will be able to offer the video services of one or both satellite companies to its customers.

The three companies will be able to offer high-speed Internet, video and voice in all Clearwire markets. The launch is planned for later this year.

DIRECTV and EchoStar will be able to sell Clearwire’s services on a stand-alone basis.

"By expanding the reach of our services through DIRECTV and EchoStar, and by incorporating direct-to-home satellite video services in our own distribution channels, we believe we have an opportunity to significantly expand our business opportunity," said Perry Satterlee, Clearwire president and chief operating officer.

"By choosing this bundle option, DIRECTV customers will now be able to enjoy Clearwire’s fast, reliable and secure wireless broadband network that works great at home and on the go," said Bruce Churchill, president of New Enterprises, DIRECTV.

As part of the collaboration, Clearwire intends to deploy WiMAX networks using wireless broadband equipment from NextNet Wireless (a Clearwire subsidiary) that includes future Intel silicon products. The joint development agreement with Clearwire is for future products supporting the upcoming IEEE 802.16e standard for WiMAX solutions found in both infrastructure equipment and notebooks. WiMAX is an emerging wireless standard that promises to provide high-speed broadband connectivity in both fixed and mobile wireless networks.

The agreement also involves a significant investment in Clearwire from Intel Capital, Intel’s strategic investment program. The investment is part of Intel Capital’s strategy to invest $150 million in wireless technology to help accelerate adoption of high-speed wireless networks worldwide. Specific financial terms of the investment were not disclosed.

“WiMAX technology has spawned a global community that continues to gain momentum, and we as an industry have achieved some important milestones this past year,” said Sean Maloney, Intel executive vice president and general manager of the Intel Communications Group. “Today’s announcement is particularly important. Carriers, equipment makers and solution providers around the world are moving quickly to lay the foundation for building this new global network.

“Craig and his team have helped shape the communications industry over the past two decades. Their vision, energy and leadership will help us achieve the promise that WiMAX technology offers: widely available, high-speed wireless connectivity using extremely high volume low-cost technology based on open standards.”

“Today’s announcement marks the beginning of an important relationship to accelerate the delivery of broadband services to people across the world,” said Clearwire Chairman and Chief Executive Officer Craig O. McCaw. “Intel is a leader in the development of WiMAX technologies. And while we have a tremendous amount of work ahead of us, we are encouraged by our early market deployments — both at Clearwire and with our friends at NextNet. We are seeing a positive response to the enormous benefits that wireless technology provides in giving people the power that comes from access to information.”

The collaboration with Clearwire is the next step in Intel’s continued development of WiMAX technology beyond “Rosedale,” its upcoming wireless broadband chip for WiMAX* products based on the IEEE 802.16-2004 standard (previously known as IEEE 802.16REVd). Rosedale is Intel’s first “system-on-a-chip” solution for cost-effective customer premise equipment (CPE) supporting that early standard.

In addition, in August, Clearwire launched its first broadband wireless network in Jacksonville, FL. The network, using NextNet technology, is a precursor to upcoming WiMAX networks and uses technologies very similar to WiMAX and offers comparable features that are expected to be available in a full-scale WiMAX network. It provides high-speed broadband wireless service throughout most of the greater Jacksonville area. Customers of the Clearwire network in Jacksonville simply connect their computer to a NextNet modem with an Ethernet cable, power it up and receive Internet access anywhere within the Clearwire coverage area. No software installation or system configuration is required.

Since last summer, Intel, Clearwire and NextNet engineers have been working together to develop, test and deploy WiMAX base stations and customer premise equipment designed and built by NextNet based on Intel silicon, making NextNet among the first vendors capable of delivering WiMAX infrastructure.

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