Friday, August 24, 2007

SeekingAlpha: Why is Sprint Nextel Focusing on WiMAX?

"Trade Radar Operator submits: I was somewhat surprised when I heard that Sprint Nextel (S) was building a separate network based on WiMAX technology. This is not a replacement for its 3G cell phone system but in addition to it. Why would they do such a thing given the scale, complexity and cost? Are they doing this in the hope that if they build it, they (customers) will come?
So first of all, what is WiMAX and why is it significant?
Technically speaking, it is a 4G wireless broadband network that uses the mobile WiMAX (Worldwide Interoperability for Microwave Access) IEEE 802.16e-2005 technology standard.
Why is that good? Because you can get high-speed Internet access with it for devices ranging from phones to PCs and devices we haven't thought of yet. And in this case, WiMAX "high-speed" is significantly faster than typical Internet access via current mobile phone technology. It will be a real data network, not a data pipe bolted onto a telecommunications network.
What could this lead to in the future?
Initially, Sprint is rolling out the product in the areas "

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