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INTC 37.51-0.8%3:59 PM EST
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To: Amy J who wrote (181210)5/17/2005 1:19:45 PM
From: Saturn V  Read Replies (1) of 186894
 
WiMax vs 3G cellular.

This is going to be an interesting horse race.

WiMax is capable of higher performance, but 3G cellular has the advantage of piggy backing off the existing 2G Cellular infrastructure. So the WiMax service provider will have the disadvantage of having to set up a brand new infrastructure ( antennas etc), while the cellular operators will have the incumbancy advantage. However we do not know the relative cost of the the electronics for WiMax compared to the cost of upgrading the 2G cellular networks.

In USA the cellular providers have been slow to upgrade to 3G networks because of the high cost and the lack of killer 3G applications on the cell phone. The pricing of 3G modem service for laptops has not been compelling, and most road warriors opt for WiFi with its spotty and expensive availability. Poor marketing by Verizon has prevented it from locking up the road warriors.

Voice over IP gives WiMax the capability of attacking the Cell companies bread and butter. But portable WiMax is a few years down the road, and it will take time to develop the portable VOIP handsets. So the Cell companies may mount a determined effort to prevent the WiMax business from developing strong roots.

It will take a few years for the dust to settle. My feeling is that both approaches will find their own niche.
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