Big Firms Bet on WiMax

AFP/TheSun: In a major bet on WiMax wireless Internet, Sprint Nextel and Clearwire said Wednesday they would combine their networks in a new company with investment from Google, Intel and others. The new company, to be named Clearwire, will deploy a nationwide WiMax network that will "dramatically enhance the speed and manner in which customers access all that the Internet has to offer at home, in the office and on the road," according to a joint statement.The new venture offers a big boost for WiMax, which allows computers to access the Internet wirelessly with a wider reach than the popular Wi-Fi technology. WiMax uses a licensed channel of radio spectrum and can transmit, according to its backers, to an area as much as 50 kilometers (30 miles) with a stronger signal than Wi-Fi and access faster than most current devices.The new firm will have investments from Internet search giant Google, computer chip maker Intel, cable firms Comcast and Time Warner Cable and service provider Bright House Networks. The firms agreed to invest a total of USD3.2 billion dollars in the new company. "The power of the mobile Internet, which offers speed and mobility, home and away, on any device or screen, will fundamentally transform the communications landscape in our country," said Clearwire chairman Craig McCaw, who would become non-executive chairman of the firm to be based in Washington state. "We believe that the new Clearwire will operate one of the fastest and most capable broadband wireless networks ever conceived, giving us the opportunity to return the US to a leadership position in the global wireless industry." Yankee Group, a research firm, estimates that 58 million people worldwide will use WiMax by 2012. Other WiMax projects are being deployed in Europe and Asia.

MyTake: Reading the above set my mind to find out the current situation of companies rolling out WiMax in Malaysia. It has been more than a year since the WiMax 2.3 GHz spectrum licenses were offered to 4 smallish companies, namely Redtone-CNX, Bizsurf -YTLE, AsiaspaceDotcom and Packet One-Green Packet. Are they ready to roll out WiMax soon? I would say NO. As noted in The Star on April 25, Malaysia's WiMax roll out will be delayed till the end of 2009 or even latter because the US themselves are closed to roll out their own WiMax 2.5 GHz spectrum scheduled in June and the certification of standards authority, WiMax Forum has given its priority to certify the equipment and transmission using that frequency. The 2.3 GHz spectrum machines will have to wait. So how are these companies going to roll out WiMax since all their equipments are not certified yet? Why haven't the companies come out to inform the general investing public about this possible delay? Or do they need certification at all? Packet One, the most likely provider to roll out this service first expects to launch their product in June 2008. Will they be going ahead without the needed pre-certification? If the rolling out be delayed, what will be the funding effects be and will 3G companies be able to take advantage to push deeper into the untapped market? Can somebody kind enough to explain?

* On WiMax, it was touted as what "GSM was to the mobile voice world". WiMax was described as the wireless technology providing wireless connectivity to internet over long distances. Wimax is said to be 4X faster than WIFI and 1/10 of the cost as it uses base stations rather than wired connections.

* On 3G space, Digi will now be able to rival Celcom and Maxis after Timedotcom assigns its 3G spectrum to Digi with a fee of RM12.5m each year. Digi is likely to spend RM800 m on infrastructure over next 3 years and will break even and profit after the 3rd year.