Telecom Outlook: Exodus from WiMAX Continues

The much-hyped next-generation (4G) technology of WiMAX is quickly losing ground to the alternative technology of Long-Term Evolution (LTE). Large telecom infrastructure equipment makers are gradually shifting from WiMAX to LTE, and as a result the WiMAX field is getting less crowded day by day.

This gives the smaller gear makers like PureWave Networks and Airspan Networks a chance to enter the WiMAX market.

Alcatel-Lucent (ALU) has scaled back its WiMAX R&D expenditures and now concentrates only on fixed WiMAX infrastructure deployment, rather than the complex mobile deployment. Nokia-Siemens Network, a joint venture of Nokia Corp. (NOK) and Siemens AG (SI), has taken a strategic decision to shift its focus to other next-generation wireless technologies, such as LTE and HSPA+, and decided to outsource the WiMAX technology from Alvarion Ltd. (ALVR). Fujitsu Ltd. has entirely stopped the development of WiMAX radio technology. Motorola (MOT) is also moving towards the LTE platform.

We believe WiMAX still enjoys commendable growth potential, especially within emerging markets. The technology provides a low-cost, open network system with an all-IP mobile Internet solution that enables efficient and scalable networks for voice, data, and video transmission. The government of India has decided to allocate spectrum for the WiMAX network together with 3G technologies.

Chunghwa Telecom (CHT) of Taiwan, P.T. Telekomunikasi (TLK) of Indonesia, Aria SPA of Italy and Mobitel Nigeria have decided to implement WiMAX broadband solutions. Millicom International Cellular (MICC), a leading telecom service provider in Central America and Africa, is also exploring an option to implement the WiMAX network as a niche alternative to cable and DSL networking.

In the U.S., WiMAX still generates enthusiasm among telecom service providers. Clearwire Corp. (CLWR) is on the verge of a nationwide WiMAX deployment. The U.S. government stimulus plan for Rural Broadband expansion has also encouraged several regional telecom operators to implement WiMAX. For example, Open Range Communications Inc. has decided to implement WiMAX network spanning 17 states, 546 rural communities, which may reach a population of 6 million.

Comments

[Peter Medved:]

If you look at the Asian market & more interestingly in the Middle East, you will see that the majority of next generation broadband is being implemented on WiMAX technology.
The fact that ALU & MOT are pulling resource out is probably more to do with increasing competition from Chinese vendors Huawei & ZTE have the Chinese market pretty much sewn up in this area & have made huge inroads in Asia-Pac & Europe as well.
Western vendors do not have the same focus as these two, so cannot sustain the pace of R&D, imo

Oct 05 04:53 AM

[Thumper:]

I think the Author must be either a Verizon Rep or Agent. I am up here in Canada, and almost everything I read points favorably to WiMax in the US. It is interesting that WiMax is being deployed and "works" . While LTE is still having radio issues and is at least 1 year from deployment. I also find it interesting why this author seems to repost on a daily basis. I would love to see some "new" neutral information.
The "so called facts" above are definitely being stretched.

Oct 05 09:54 AM

[Max-italia:]

It's true in Italy the WiMAX work good!! One negative thing is the limitated coverage.


On Oct 05 09:54 AM Thumper wrote:

> I think the Author must be either a Verizon Rep or Agent. I am up
> here in Canada, and almost everything I read points favorably to
> WiMax in the US. It is interesting that WiMax is being deployed and
> "works" . While LTE is still having radio issues and is at least
> 1 year from deployment. I also find it interesting why this author
> seems to repost on a daily basis. I would love to see some "new"
> neutral information.
> The "so called facts" above are definitely being stretched.

Oct 05 02:44 PM

[User 80734:]

Score WIMAX 200 cities, LTE zero. Some exodus.

Oct 05 03:10 PM

[Max-italia:]

LTE is commercial strategies for mobile market.

Oct 05 03:25 PM

[Carousel:]

This article has to be utter garbage?

LTE is nowhere to be seen, WiMAX is rapidly being rolled out - like in the US.

There's no exodus - There's simply equipment makers who FAILED to make it in the WiMAX market place - Aka. You can get better, for cheaper, from another equipment maker.

"This gives the smaller gear makers like PureWave Networks and Airspan Networks a chance to enter the WiMAX market."

In case you don't know. Airspan is about to be liquidated. They FAILED to make a compelling product.

The opportunities for WiMAX are vast, those equipment makers that invested in R&D and produced a decent product are reaping the rewards. The rest are either being bought out, assimilated or hoping they can make it with LTE - They better not be holding their breath!

Oct 06 01:59 AM

[Stone Fox C...:]

agree the exodus is from equipment makers and not so much customers especially non US providers. Thats the problem that US centric analysts always have with WIMAX. They always view it based on what VZ and T do. Never Emerging Markets and Europe. ALVR has just announced deals in Italy and Spain. Sure doesn't sound dead. The whole continent of Africa is charging ahead. ALVR is the play.

Oct 06 01:01 PM