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July 22, 2008: Sprint out of NGMN; Intel's WiMAX strategy

Brian Dolan, Editor
Brian Dolan
Editor

This past week's biggest departure was that of Sprint Nextel from the Next Generation Mobile Networks group, after the group made it clear they favored LTE over WiMAX. The departure sent waves through the industry and created enough ruckus to supply industry trade journals and bloggers with a number of articles and posts. Perhaps more incendiary, however, is the continuing speculation that Intel may slowly withdraw itself from the helm of the WiMAX movement. Longtime industry pundit and analyst Andy Seybold is the latest high profile columnist to suggest that Intel is making moves to slowly extricate itself from the position of WiMAX flag-bearer.

"Over the past several weeks, I have written a number of articles speculating about Intel's intention to exit the WiMAX space and cited its first volley when its VP of marketing suggested that WiMAX and LTE should become one and the same," Seybold wrote in a recent blog post. Newswireless.net's Guy Kewney gives Seybold credit for stating directly what many have whispered recently.

We wonder, however, if Seybold is missing the point here--"backing out of WiMAX" is strong language. Seybold contends in this earlier article that Intel's plan is probably to switch to LTE/WiMAX chipsets--hardly a backing out. What do you think--Is Intel backing out of WiMAX? Changing its priorities? Or is this just business as usual?

WiMAX Trends' columnist Caroline Gabriel seized on Intel's slow pivot a few week's back in a column that certainly got a few of our readers' attentions--revisit her analysis here.

ALSO: Others in the industry are whispering about the WiMAX World Awards. Have you submitted your company for one yet? Check out all the details here and get those nominations in by August 8! There will be no extensions this year--so don't delay!

Latest Weekly Features

A feature of the emerging generation of mobile broadband standards is that the major operators have seized the steering wheel, and are determined to ensure the technologies are optimized for their commercial needs. The most powerful body coordinating the operators' activities is the NGMN (Next Generation Mobile Networks) Alliance, which numbers 18 carrier members and works with a wide range of other bodies. When it was first formed, it seemed to be a force for unity across the industry, able to support more than one RAN technology, and bring various 4G contenders within a common umbrella of patents policies, performance tests and interoperability systems. But now the operators are descending into the same politics that have often delayed or fragmented standards over which the vendors have ruled, and the clearest signal is that the Alliance has selected just one technology - LTE - as its preferred new generation network, and this has prompted WiMAX' greatest supporter, Sprint Nextel, to quit the Alliance.

The developments dampen hopes for a near term convergence of WiMAX and LTE into a single mobile broadband standard for the run-up to 4G, although the Alliance did indicate, when it made its LTE selection earlier this month, that it would assess WiMAX again in its next iteration, 802.16m. This suggests strongly that WiMAX and LTE could remain separate for the current generation and then come more closely together at the 16m/LTE 2 stage, in a few years' time, assuming that both technologies have strong market positions by then.

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India is absolutely critical to the fortunes of WiMAX, and the level of uptake in the huge nation will help decide how prominent a position 802.16e takes in the overall wireless landscape in the next decade. There are many reasons for WiMAX supporters to be hopeful, but every time it appears that the technology may a major green light this year, the political disputes with which the Indian telecoms market is plagued throw another roadblock in the way. So last week, regulator TRAI clashed once again with the Department of Telecom (DoT), threatening the plan to auction mobile broadband licenses in 2.3-2.7GHz this year alongside 3G rights - a dual-layer plan that could help underpin a wireless revolution for India, with operators able to roll out 3G and 4G services according to need, and with WiMAX likely to play a major role.

Despite the frustration of delays - which, if prolonged, threaten to allow LTE into the market - India remains WiMAX' biggest single hope for revenue and global influence. Most of the major operators and many small ones are already building out 802.16e in 3.3GHz for wireless DSL,enterprise and nomadic data services, with Tata, BSNL and Bharti among the players. The leading cellcos are likely to snap up the 3G licenses and some of the mobile broadband franchises, but these will be fully technology neutral and Tata, Bharti and Reliance have all expressed interest in using WiMAX as their primary '4G' system. Research by Rethink into operator spending intentions for mobile broadband indicate that, after 2010 (assuming the auctions go ahead by the end of this year), India will show the highest annual growth in WiMAX investment of any country in 2010 and 2011, and at that point will be the leading nation in terms of WiMAX roll-out. On the subscriber side, another report, this one from Springboard Research, estimates that India will be the largest market in the Asia-Pacific region by 2012, accounting for over 35% of service revenues across the area, and boasting 15.8m subscribers.

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Recent Weekly Features

Latest Industry News
July 22, 2008
Analyst: Intel will pull out of WiMAX, but not completely
http://www.newswireless.net/index.cfm/article/4011
July 22, 2008
WiMAX Ahoy: Singapore takes it to the seas
http://www.pcworld.com/businesscenter/article/148706/wimax...
July 22, 2008
Analyst: Don't jump to WiMAX too soon
http://www.pcworld.com/businesscenter/article/148644/dont_jump_to...
July 22, 2008
Saudi Telecom deploys Airspan's 3.5 GHz WiMAX
http://www.marketwatch.com/news/story/saudi-telecom-deploys-airspans-35/story.aspx?guid=%7B753B7D22-14DE-4035-AF9A-60BD07F534E5%7D&dist=hppr
July 15, 2008
BIRD fund helps Nextlink build Israeli WiMAX network
http://www.marketwatch.com/news/story/nextlink-wins-international-grant-fund/story.aspx?guid=%7BCEFBBC2A-ED17-479F-88B8-B3CD6A770302%7D&dist=hppr
July 15, 2008
Falling WiMAX chipset prices: Good news for devices
http://www.marketwatch.com/news/story/falling-wimax-chipset-prices-spell/story.aspx?guid=%7B9F150ADA-E17D-400B-91F5-125131D9D820%7D&dist=hppr
July 15, 2008
Clearwire still vague on September launch date
http://www.tgdaily.com/content/view/38394/103/
July 15, 2008
mFormation inks Sprint deal for device management
http://www.telegeography.com/cu/article.php?article_id=24055&email=html
More Industry News

Upcoming Telebriefing

WiMAX and IMS
July 24, 2008 - 11am

Although it was initially intended to enable third-generation packet-switched mobile networks to access IP-based applications and services through Session Initiation Protocol (SIP), marketing hype has driven IMS to an overarching umbrella architecture for offering IP-based services regardless of the user's access technology. Regardless of the hype, IMS represents one of the most important telecom technology developments of this decade, enabling the transmission of any type of media (i.e., voice, video or data) using any type of access method. In this telebriefing Yankee Group will discuss the IMS reference architecture and it's importance to the future development of WiMAX. REGISTER NOW

Speaker: Brian Partridge, Program Manager, Yankee Group

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