October 16, 2005

Why WiMax Could Hit the Hotspot - Yahoo! News

Well worth the read for anyone interested in the potential for WiMax wireless services. Some folks talk about the broadband potential in powerline services, but those are premise-based and could offer an alternative to cable and DSL broadband. However, wireless with it's portability and the ability to use it at a fixed location will be the real future broadband winner.

Don't count out the cellular service companies. Their 3G networks offer both broadband and a fallback to narrower band coverage in much of the U.S. and their footprints continue to grow.
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"DOUBLE BYPASS. WiMax has the power to disrupt the telecom market by throwing control of the customer up for grabs. Wi-Fi isn't that threatening to telecom and cable companies because customers need a fixed broadband connection such as a DSL or cable modem to make it work. Wi-Fi is simply a wireless version of a broadband extension cord with a reach of a few dozen yards. But WiMax eliminates the need for a fixed broadband connection in the home. It allows outfits like Covad to completely bypass the telecom companies. And as WiMax goes mobile, it will allow upstarts to bypass the wireless phone companies, too.

Timing is everything in life. Companies such as AT&T searched desperately for such a local phone bypass in the late '90s. AT&T experimented with fixed wireless before it moved on to cable. Both failed, and now SBC is buying AT&T for $16 billion. WiMax came along a few years too late to save AT&T. But it may offer a new generation of companies a shot."

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