Many Cynical About New Administration's Wireless Broadband Initiative

After signing a historic $787 billion bill that will provide funds to a host of public work programs, President Obama’s stimulus package will also benefit initiatives for the expansion of broadband wireless technologies to rural areas of the United States. Adding to the uproar over the signing of the bill from Democrats and Republicans alike, the proposed allocation of $7.2 billion for wireless technology improvements is also receiving objections from critics that are cynical that the bill will benefit the industry.

The demur most critics have for this bill stems from their lack of faith in the federal governmental agencies that will most likely be heading projects for rural WiMAX. They contend that every home in a rural area will not necessarily seek wireless service, and that the cost of bringing these services to rural areas will be quite hefty.

At the same time, supporters of the spending legislation welcome any and all companies that are willing to expand wireless services to their area. WiMax service is cost effective and supporters, think the spending legislation is a beacon for revamping the technological scope of the entire country with WiMAX technology. Not only would the $7.2 billion help underdeveloped areas, but with the flailing economy, it would also create much-needed jobs and help boost industry stocks. In a year that industry leader Alvarion (ALVR) stock price dropped from $9.15 to $2.93 and Motorola (MOT) came down from $10.50 to $3.40 that could make a significant difference.

It seems likely that the future of the WiMax industry in the U.S will be aided by generous spending of the Obama administration. With WiMax the best suited technology to help begin these efforts, companies like Quantum Networks will have an integral part in the expansion of WiMAX in the United States.

Disclosure: Author is LONG on ALVARION (ALVR) & MOTOROLA (MOT).

Comments

[websmith:]

This initiative, which is based on an uneducated vision and speculation, without any real knowledge is going to be a nightmare for the industry.

ewebsmith.com/Bus/telc...

Mar 06 05:39 PM

[User 384699:]

I agree with your statement because of the very vital structure and economic based structure within the executive board.

On Mar 06 05:39 PM websmith wrote:

> This initiative, which is based on an uneducated vision and speculation,
> without any real knowledge is going to be a nightmare for the industry.
>
>
> ewebsmith.com/Bus/telc...

Mar 28 12:05 PM