Intel Plans Global WiMAX Expansion in 2009 Despite Recession
Intel is on track with its international WiMAX deployment and expansion, despite the world recession, Executive Vice President Sean Maloney said Wednesday on a conference call. On the U.S. stimulus bill, the chip maker believes that it would “be a shame to spend the money on yesterday’s technology, not tomorrow’s,” Maloney said. WiMAX meets the technology requirements of the bill and offers a fast track to economic benefits, he said.
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Maloney emphasized the low cost and the spread of WiMAX, 80 percent of whose deployments are outside the U.S. A critical requirement for the success of a new technology is the availability of low-cost chipsets, he said. Acer, Fujistu, Lenovo and Panasonic in the next few weeks will offer Centrino notebooks with WiMAX capability built in, he said. Twenty-six models are certified and about 100 are coming this year. Netbooks will also start shipping with WiMAX, he said. South Korea, Russia and Japan are becoming leaders in WiMAX deployments, he said.
WiMAX providers are on track to reach 800 million customers before 2011, Maloney said, citing WiMAX Forum figures. With new spectrum licenses expected in countries like Brazil and India, the forum said, it expects accelerated extension of WiMAX this year. WiMAX networks reach almost 460 million people in more than 135 countries, Maloney said. As governments seek to promote broadband for economic recovery, WiMAX is ready, he said -- the right technology at the right time.
Maloney also announced work with Chinese vendor Huawei on a WiMAX interoperability testing lab in Beijing. And equipment maker Alvarion joined the Open Patent Alliance on Wednesday. “Intel’s vision for the OPA brings the openness of the Internet and computing industries to the wireless broadband industry,” said Sriram Viswanathan, vice president of Intel Capital. The OPA’s main goal is to create a WiMAX patent pool to collect rights for WiMAX implementation, the group said. The idea is to make licenses for patents related to WiMAX predictable, transparent and inexpensive, it said.
Meanwhile, Intel, a big investor in the WiMAX venture Clearwire, stressed its confidence in the financing for a national rollout. “At the end of the day, Clearwire may be a small company, but they have the largest single amount of spectrum in the U.S.,” Maloney said. “This game is a long way from over yet,” he said, responding to skepticism that WiMAX will survive in the U.S. Clearwire is expected to announce expansion plans soon.
Some analysts warned that Clearwire may have to delay its network expansion if it fails to close a funding gap of about $2 billion. “Intel talks a big game on the WiMAX front, but they clearly realize that it’s losing momentum,” said Needham & Co. analyst Edwin Mok. Analyst John Krause of Thrivent Financial for Lutherans said, “WiMAX is a ticket for Intel to go after the handset market, which is their long-term goal. In that sense, it’s a setback.” Though several equipment vendors have backed away from WiMAX, Intel remains bullish on the technology, said Luke Thomas of Frost & Sullivan.