Wireless operator Sprint Nextel is planning to unveil new broadband services over the next few years with WiMax backed by Intel (INTC). SprintNextel will use WiMax technology to build out its G4 WiFi Network. The price range would vary between USD 1 and USD 4 billion, experts quoted at The Wall Street Journal. Sprint executives have been experimenting with various technology options that would allow users to access the Internet while on the move, including technology from Flarion, a company now owned by Qualcomm (QCOM). But it was WiMax that they finally settled upon.
The network, which will be unveiled by the fourth quarter, will offer downstream speeds of two megabits per second (mbps) to four mbps, Sprint said. Partners Intel, Motorola, and Samsung Electronics plan to help by equipping notebook PCs and a variety of mobile devices to use the 4G networks.
Sprint Nextel’s choice of WiMax is the first endorsement of the metropolitan-area wireless data system. Sprint's union with WiMax along with its hardware partners will have a far-reaching impact globally, according to IDC analyst Shiv Bakhshi. The carrier said it chose WiMax because it believes it could build an ecosystem of equipment makers around the technology, which is based on the IEEE 802.16e standard.
"That will create an ecosystem, trust me," Bakhshi said. Motorola and Samsung's position in the mobile device market, along with Intel's marketing power, will help make this a turning point for WiMax, he said. "WiMax was in need of a major player signing on to it," he said, adding that Sprint's deployment will become a showcase to the rest of the world.
Analysts have waved a caution flag stating that equipment shipments aren't likely to reach tens of millions of units a year until after 2010. Stephen Entwhistle, vice president of the Strategic Technologies Practice at Strategy Analysts, said that WiMAX coverage has begun to garner attention only following certification of the wide area wireless technology.
"WiMAX equipment suppliers and chip makers face a much less uncertain future," said Entwhistle in a statement. "Even so, most remain cautious." The market research firm indicated that recovery of product development costs would likely be problematic for companies competing in the WiMAX components arena.
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