ACM TechNews

Hold Off on WiMax Investments, Gartner Cautions

Network World (07/18/08) Reed, Brad

A new report from Gartner Research says that business should not invest in WiMax technology until the technology establishes a greater deployment base in the United States and until vendors produce more dual-mode cellular/WiMax handsets. Gartner predicts that WiMax networks in the United States will start operating commercially over the next two years, but that WiMax itself will remain a "niche technology" that will be best used serving emerging or rural markets that do not already have access to broadband services. One of the major hurdles WiMax faces is that WiMax will not be able to provide national coverage for some time, as only Sprint and Clearwire partners will be launching commercial WiMax services for the first time this September. Gartner analyst Phillip Redman says business will have to wait until coverage extends to more cities than the ones that will be covered by the end of the year. Additionally, Redman says that enterprises that want both WiMax data and cellular voice capabilities will have to wait at least a few years until more dual-mode handsets are available. Redman says that because WiMax is starting as a data-only service, businesses will have to rely on VoIP for mobile voice needs, and they should look elsewhere until WiMax devices include cellular coverage. "In competitive markets, WiMax is going to have a very tough row since it's starting from scratch," says Redman. "But WiMax still has great opportunities in different markets. I think it makes sense in developing markets and developing economies that don't have broadband comp from wireline carriers."

http://www.networkworld.com/news/2008/071808-wimax.html

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