WiMAX ready for a big boost?

With all the recent activity surrounding the 700 MHz spectrum auction, there's been quite a lot of spillover to all things WiMAX. In particular, there has been a lot of renewed interest in Clearwire's on again, off again, on again discussions with Sprint. This time around, the rumors have them furthering their plans for a nationwide WiMax network by forming a joint venture with other companies such as Best Buy, Intel and Google. Only time will tell if there is anything to all of this, but the renewed interest has thrown a spotlight on the value of their 2.5 GHz WiMAX spectrum, and spectrum in general. Remember, as you read anything about the value of spectrum, that we've recently been awarded a nationwide license to provide WiMAX wireless services in the newly released 3.65 GHz band (3650-3700 MHz), in addition to the LMDS licensed spectrum covering four metro BTAs ( Los Angeles, California; Atlanta, Georgia; Miami/Fort Lauderdale, Florida; and Philadelphia, Pennsylvania/Wilmington, Delaware/Trenton, New Jersey) that we've secured from Nextlink. We'll be covering this issue in a subsequent post, in a lot more detail.

Separately, the Wall Street Journal ran a very interesting article on how some firms are trying WiMAX to boost their internet hook-ups. In it, they talk about the increasing numbers of small to medium businesses who are switching from traditional connectivity options to WiMAX services, citing flexibility, scalability, reliability and cost-effectiveness as the reasons for switching. They give several examples of companies who've successfully switched to WiMAX and pre-WiMAX services, either because their previous providers couldn't service their needs, attractive price / performance, or to provide redundancy (far too many companies only learn that their redundant copper circuits often go through the same conduits as their primary circuit, when someone inadvertently puts a backhoe through both of them).

Lastly, telecommunications market research and analysis firm Maravedis revealed their latest report, entitled WiMAX, LTE and Broadband Wireless Worldwide Market Trends 2008-2014. In it, they suggest that WiMAX subscribers will exceed 100 Million by 2014 as WiMAX and LTE technologies converge upon 4G technologies and markets. They're predicting that WiMAX chipsets will start to be embedded in laptops in the second half of 2008, into handheld devices in 2009, and into consumer electronics by early 2010. In terms of the two technologies, they suggest that WiMAX will have a distinct advantage over LTE, as the latter will probably not be available in significant volumes until 2012. What's also interesting is some of the data points that they've highlighted:

• The accumulated market size for combined demand and supply of WiMAX equipment will reach $42 billion by 2014.

• There were over 1,650,000 BWA subscribers, including 635,000 WiMAX subscribers, at the end of 2007.

• The combined BWA and WiMAX equipment market totaled US$1.2 billion in 2007.

• The mobile version of WiMAX (802.16m) in 2011 will challenge cellular phone volume dominance.