Wednesday, July 14, 2010

Exodus From WIMAX Continues

The much hyped next-generation (4G) technology of WiMAX is quickly losing ground to the alternative technology of Long-Term Evolution (LTE). Large telecom infrastructure equipment makers are gradually shifting from WiMAX to LTE and as a result the WiMAX field is getting less crowded day by day. Long Term Evolution (LTE) technology is clearly ahead in the race as the most sought after 4G wireless network standard in the market.
 
Global mobile infrastructure solutions providers like, L.M. Ericsson AB (ERIC: 11.64 +0.16 +1.39%), Alcatel-Lucent (ALU: 2.795 +0.015 +0.54%), and Huawei Technologies Co. Ltd chose the LTE path long back. Ericsson is currently the undisputed leader of LTE. Alcatel-Lucent has concentrated only on fixed WiMAX infrastructure deployment. Another global giant, Nokia Siemens Network, the 50-50 joint venture between Nokia Corp. (NOK: 8.56 0.00 0.00%) and Siemens AG(SI: 96.88 +0.27 +0.28%) has finally decided to focus only on LTE instead of LTE and WiMAX.
 
LTE offers several advantages over other 4G technologies like, WiMAX, Ultra Mobile Broadband (upgrade of CDMA EV-DO) and Multi-input Multi-output (MIMO) Wireless LAN. This includes improvement in spectral efficiency, lower costs, and solid integration with other open wireless standards. These are the compelling reasons influencing telecom service providers to switch to the LTE network.
 
Recently Alvarion Ltd. (ALVR: 2.23 +0.14 +6.70%) decided to offer TDD-LTE network infrastructure together with WiMAX. Alvarion’s decision was particularly important since this company was by far the largest pure-play WiMAX infrastructure developer in the world. Alvarion’s platforms, in particular the BreezeMAX line of products is typically applied by entities designing high-speed broadband wireless networking services.
 
Nevertheless, we believe WiMAX still enjoys commendable growth potential especially in the emerging markets. The technology provides a low-cost, open network system with an all IP mobile Internet solution that enables efficient and scalable networks for voice, data and video transmission. After the spectrum auction, India has become a lucrative market for the WiMAX network. 



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