WiMAX News Heating Up

Ina Sebastian | August 24, 2007, 02:46 PM

In last week’s technology summit, Sprint announced some details on their upcoming WiMAX network. Sprint and Clearwire expect to cover 100 million pops by the end of 2008 with the XOHM service. Sprint estimates an investment of about 5 billion dollars by 2010 to build out this network, expecting positive cash flow by 2011. Most interestingly, the service will be based on an “Internet” or “Open Access” Model, as opposed to the walled garden approach of other licensed carrier networks. That means that all WiMAX embedded devices can get on and Sprint plans to make money as a media company - with innovative personalized services that can be accessed anytime and anywhere. The Google partnership is part of this plan, but no other details of the actual business models have been revealed. What will happen in the short term? Sprint is focusing on building out an ecosystem of embedded devices by partnering with CE companies, which committed to bringing 50 million WiMAX embedded units into the US market in the next three years. We will see PC cards by the middle of 2008, and first CE devices by the end of 2008. Those will be devices such as ultra mobile-type devices and cameras.

Yesterday we had a briefing with the WiMAX Forum, in which we talked about all the other projects. It is clear that Sprint’s plans in the US are a unique case that will not indicate success or failure of WiMAX worldwide. There are more than 275 operator trials in more than 65 countries. Many countries are looking into WiMAX as a broadband technology for economic development and competitiveness. It reminds of municipal Wi-Fi, in particular in less urban areas. Then there are examples of countries with already mature broadband infrastructure but a lot of interest in mobile connectivity and applications (e.g., M-Taiwan). WiMAX is definitely a very exciting technology with great potential in the future.