Irene Chen, Taipei; Steve Shen, DIGITIMES [Wednesday 28 November 2007]
The potential focus shift in the development of next-generation mobile wireless broadband technology from WiMAX to LTE (Long Term Evolution) or UMB (ultra mobile broadband) by AT&T and Verizon Wireless may cast shadows on the prospects of Taiwan-based WiMAX hardware makers, according to sources from the Taiwan WiMAX industry.
The prospects are high for AT&T to switch to LTE as AT&T Mobility CEO Ralph de la Vega has said that LTE technology is a logical choice for the development of new mobile broadband technology, noted the industry sources.
Although Verizon has not yet made a decision, the company is likely to throw its weigh behind UMB due to its long-term business relationship with Qualcomm, an initiator of UMB technology, pointed out the sources.
The shift could be a setback for Taiwan network-equipment makers who have mostly bet on WiMAX products encouraged by the Taiwan-government's active promotion, said the sources.
Despite the unfavorable developments, Taiwan makers can still count on Sprint Nextel and WiMAX operators in other markets, including Japan and India, to continue to move production of their WiMAX hardware forward, the sources contended.
Sprint Nextel has vowed to continue the implementation of its WiMAX service program scheduled to kick off in 2008, despite the discontinuation of the partnership with Verizon on WiMAX services, the sources indicated.
Sprint Nextel's procurement of WiMAX products will include WiMAX network cards, WiMAX routers, IP cameras and media players, among other items, said the sources
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