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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 240.58-2.5%Nov 17 3:59 PM EST

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To: FJB who wrote (241369)9/27/2007 10:41:27 PM
From: pgerassiRead Replies (1) of 275872
 
Dear Robert:

This discussion is more about wireless infrastructure but does impact AMD indirectly. Mostly through its mobile platforms.

Essentially Sprint is having its wired users both POTS (GTE and long distance), cellphone users and internet subscribers subsidize its wireless rollout. They pay the $5.8K/mo to themselves for internet access and simply add WiMax to each cell tower which is already paid for. OTOH, the data density will still be low as a cell site covers 3-12 square miles (a cell tower has 6 pie shaped zones). Even using the zones, a few thousand will be active in each zone in the downtown area. That pushes down the average rates to below 20Kb/s which not many would pay more than a $1 a month surcharge (most will want it free). Not enough to pay for the infrastructure.

Only in rural areas not served by other wired means, does it become feasible (no true competition). The required data density is low (<20 users in a cellphone zone), so its possible to have just one WiMax cell per zone where each fixed user gets about 1-3Mb/s rates plus the few roaming users.

As for the mobile notebook user, such capability will become standard and AMD can use any third party's device to make it happen.

Pete
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