Mobile WiMAX Still Has Inside Track for Next-Generation Wireless Service

(Business News & Technology News, 11 Dec 2007)

Mobile WiMAX, which stands to bring consumers an expanded array of mobile video, data and voice services, will be delayed in getting to market, but will not be a failure as some wireless industry observers have begun to fear, according to market researcher Pike & Fischer.

Despite some deployment hurdles, mobile WiMAX will hit the market much sooner than competing fourth-generation or 4G solutions being embraced by Verizon Wireless and AT&T. And WiMAX will offer higher speeds than the current crop of mobile data technologies can support, P&F added.

The recent decision by Sprint Nextel and Clearwire Communications to abandon a joint WiMAX deployment fueled speculation that WiMAX might end up a technology bust in the United States. But Sprint will continue to invest heavily in building its own WiMAX network, despite recent financial troubles, P&F predicted in its report. And Clearwire, a startup based in Washington State, has already committed itself to building a WiMAX network that will accommodate consumer devices made by the company's investors, which include Intel and Motorola.

But cell phone makers will have to bring a critical number of WiMAX-enabled devices to the market in 2008 in order to keep them affordable for consumers, cautioned P&F Chief Analyst Tim McElgunn, author of the report. At least one of the handsets is expected to launch with a price tag of $1,500. And if customers encounter service problems—such as dropped calls—they may decide WiMAX service isn't worth the price, McElgunn said.

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