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The rise and fall of WiMax! What went wrong? How did companies like Intel and Sprint couldn't see that coming?
asked
by Ardeshir Namazi
about 1 year ago
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WiMAX initiated for a "fixed wireless" solution and not really mobile. Just put antennas on top of rooftops and use it as a competoitor to DSL, cable modem, ... internet at offices, home. Solid business model and no competiotion to real mobile world. But people like Intel try to push it to open the door into mobile world by introducing mobility. And you know the rest; mobile world follow their path of evolution (which was LTE) and rest is history. Now to answer your second question; Intel burned billions of dollars to enter a new market which it is not involved (mobile); still it is nothing fo r a company like Intel as a way to attack a market. But someone like Sprint, it is a good question. Why an operator uses a technology like it. Nobody know, probably same board memeber in Sprint and couple of WiMAX vendors!!!!! (more)
1. Opposition of players in GSM/WCDMA camp (Ericsson, Qualcomm, etc.).
2. Slow development of the Mobile WiMAX standard, and late inclusion of FDD profiles gave opponents a way of attacking it.
3. Inclusion (although it was 2 years late) of a TDD mode in LTE, matching the WiMAX capability.
4. Fear of being left alone, while the world converged upon a single standard (LTE) caused major operators to take the "safe bet", even if it was slower to market.
5. The costs of transitions from WiMAX to LTE grew progressively lower, making it easier for WiMAX incumbents to switch to LTE.
6. The ability of
operators to plug the "bandwidth gap" with HSPA+ devices, gaining time for the industry to develop LTE to maturity.
7. Lack of defined interoperability of existing 2G/3G networks with WiMAX networks presents a risk to operators attempting to leverage legacy assets.
Bottom line: WiMAX is a healthy technology with a terminal business case. Cause of death should be "Death by a thousand cuts." And interestingly, WiMAX is still pushing LTE ahead, as evidenced by the 802.16m vs. LTE-advanced comparisons.
Sprint knew well that they had a long shot, but covered their bet by hiring industry veterans like Barry West to implement the "WiMAX ecosystem" as Zohm. However, they simply got out-maneuvered by the GSM/WCDMA incumbents. Intel also went for a long shot, seeing the possibility of having a 80+ percent market share in WiMAX chipsets. They relied upon others to move from a technology case to a business case, and got caught out.
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