WiMAX (Worldwide interoperability for Microwave Access) is a wireless broadband technology based on the IEEE 802.16 family of standards. It was originally designed as a last-mile fixed wireless broadband access technology, but has also became a mobile broadband specification. Theoretically, WiMAX offers longer ranges, increased throughput, QoS and interoperability at relatively low cost.

"WiMAX suffered a major setback when the partnership between US operator Sprint Nextel, one of the technology's strongest advocates, and Clearwire fell apart in November," says Andrew Parkin-White, Principal Analyst at Analysys, and co-author of Mobile Market Perspectives 2008 (A summary of recent research into the evolving mobile market).

"Several WiMAX networks were launched in developing markets in 2007, but most were small in scale and, given the low disposable income in these countries, operators will need to revise their business models if the cost of mobile WiMAX CPE continues to be high."

Research also suggests other technologies may meet the needs of the MNO (Mobile Network Operator) and its customers better than WiMAX.

"LTE looks to be more suitable for developed mobile markets, but success depends on its ability to achieve its targets for network performance at an appropriate price and within the right time-scale," says Parkin-White.

An alternative approach may well threaten conventional thinking on 3G network enhancements: the availability of low-cost fixed broadband, the advent of femtocells (indoor base stations) and the adoption of dedicated broadcasting networks could call into question the need for the envisaged network enhancement strategy.

"Our research, combined with demand and capacity modelling, has shown that an approach that combines these alternatives with HSPA+ may meet the capacity needs of a wide range of operators. If MNOs start to develop a fundamentally different view on their strategy for technology evolution, vendors will have to totally rethink their approach to the market in 2008. Either way, the future for WiMAX does not look healthy," explains Parkin-White.

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The main goal of this agreement is that Hitachi Com and Alvarion will develop total system solutions, combined with the base station technology of Alvarion, which is globally a leading company in WiMAX and broadband wireless systems, with the mobile gateway technology, construction and maintenance technology of Hitachi Com, which has the rich experience of 3G Mobile Radio Network System.

Hitachi Com is in charge of developing ASN-GW, while Alvarion is in charge of developing high performance macro/micro base stations.

Ultimately Hitachi Com, which has proven itself in the 3G mobile communication market, and Alvarion, hope to realize a new WiMAX system in Japan, that has high quality of career grade signal while still maintaining WiFi systems and deployment.

The WiMAX network is being designed to deliver mobile broadband services in urban, suburban and rural markets, and enable significantly greater depth and breadth of services. The arrangement also is expected to enable each company to increase capital efficiency and reduce overall network development and operating costs.

Sprint Nextel and Clearwire expect to build their respective portions of the nationwide network, and enable roaming between the respective territories. The companies also will work jointly on product and service evolution, shared infrastructure, branding, marketing and distribution. Additionally, the companies intend to exchange selected 2.5 GHz spectrum in order to optimize build-out, development and operation of the network.

The arrangement is subject to the execution of definitive agreements, which are expected to be finalized within the next 60 days. It is also subject to review by the Department of Justice, and approval of spectrum license assignments and transfers by the Federal Communications Commission.

Sprint Nextel and Clearwire intend to provide consumers, businesses and distributors across the country with access to the open Internet over a robust wireless broadband network that is being designed to deliver comparable speeds to existing wireline broadband services and offer maximum customer flexibility. Additionally, the Federal government and public safety agencies, which rely heavily on wireless networks during times of crisis, are expected to benefit from the mobility afforded through the WiMAX network to access their Internet-based communications, applications and content.

"This arrangement will result in stronger competition in the rapidly growing market for broadband services, and will provide consumers, national enterprises and other businesses, educators and public safety agencies greater choice and faster access to a revolutionary mobile broadband technology," said Sprint Nextel Chairman and Chief Executive Officer Gary Forsee. "It will further our objective of delivering mobile WiMAX service across the country and help fulfill our vision of delivering mobility products and services across all our networks."

"Our joint efforts will result in customers benefiting from a more extensive network, operating sooner and using our respective spectrum more efficiently than either company could have on its own," said Clearwire Chief Executive Officer Ben Wolff. "Our companies share a vision of doing for the Internet what cellular and PCS networks did for voice communications starting more than twenty years ago. Based on this shared vision and the expected benefits to each company and our respective shareholders and customers, it is natural that we would work together," Wolff said.

Under the network build-out plan, Sprint Nextel will focus its efforts primarily on geographic areas covering approximately 185 million people, including 75 percent of the people located in the 50 largest markets, while Clearwire will focus on areas covering approximately 115 million people. Initially, the two companies expect to build out network coverage to approximately 100 million people by the end of 2008, with seamless roaming enabled between the deployed areas.

The arrangement also will provide for the exchange of spectrum between Sprint Nextel and Clearwire to enable each company to build out its portion of the network and to enhance service in its build-out territory, as well as for the exchange of other assets associated with this spectrum. In addition, Clearwire will have the ability to utilize certain Sprint Nextel infrastructure.

Sprint Nextel and Clearwire will market mobile WiMAX services under a common service brand, and Clearwire will offer mobile WiMAX services in Clearwire's territories through Sprint Nextel's retail stores, and through its own distribution channels. Both companies will provide seamless reciprocal roaming service to each others' WiMAX customers, and Sprint Nextel plans to provide dual-mode (CDMA-WiMAX) services nationwide to its customers over both its own and Clearwire's portion of the WiMAX networks.

Sprint Nextel will take the lead in establishing relationships with national distributors and other potential strategic partners, including wholesale or mobile virtual network operator (MVNO) arrangements. Clearwire will have the ability to offer Sprint Nextel's third generation voice and data services as part of a bundle or on a stand-alone basis to Clearwire's customers, which will also allow Clearwire to provide dual-mode services to its customers. The initial term of the arrangement is 20 years, with three 10-year renewal periods.

As previously announced, Sprint Nextel expects to commence the initial stage of its mobile WiMAX network deployments by year-end 2007 and both companies expect to launch commercial service in the first half of 2008. The companies individually are working with a broad range of manufacturers including Intel, Motorola, Samsung, Nokia and others to create an ecosystem of chips, products and software designed to provide mobile WiMAX access.

Mobile WiMAX is a wireless broadband technology that is designed to operate more than five times faster than today's third-generation wireless networks at lower cost. Mobile WiMAX technology is expected to allow users to wirelessly download full-length movies and songs, conduct live video-conferences from remote locations, and perform other interactive multi-media applications anywhere in the coverage area, mobilizing the full power of the open Internet. The technology is expected to be deployed ubiquitously with embedded chipsets in computing, consumer electronic devices and other innovative access devices being developed by a global ecosystem.
Sprint Nextel and Clearwire to Partner to Accelerate and Expand the Deployment of the First Nationwide Mobile Broadband Network Using WiMAX Technology

"Today we are watching major strategic alliances, partnerships, and mergers starting to take place," says ABI Research principal analyst Philip Solis. "DirecTV and EchoStar announced a partnership with Clearwire, allowing Clearwire to bundle broadcast video and – when its network is deployed – provide the DBS companies with a fast, low-latency pipe into the home."

Sprint and Clearwire will at least form a roaming arrangement, if not actually merge in some form. NextWave also has a lot of WiMAX-friendly spectrum, and its NextWave Broadband subsidiary will be selling mobile WiMAX chipsets, helping to enable more WiMAX devices faster, thus increasing the value of the spectrum it holds. In addition, there are many wireless ISPs looking to deploy mobile WiMAX. Horizon Wi-Com, for example, holds 2.3 GHz spectrum that it acquired from Verizon across much of the Northeast.

These market trends and more are discussed in a new ABI Research Brief, "Mobile WiMAX in the United States", which provides detailed analysis of these service providers’ past and present efforts, and future directions. It is included in ABI Research’s Mobile Broadband Research Service, which also contains other Research Briefs, full-length Research Reports, Market Data, ABI Insights and analyst inquiry support.

"We are pleased to be part of Alvarion's best-of-breed 4Motion WiMAX solution," said Tyler Nelson, vice president of business development and marketing for Bridgewater Systems. "Bridgewater's participation in Alvarion's OPEN WiMAX ecosystem will allow operators around the world to gain access to an industry-leading AAA solution that meets the requirements for mobile WiMAX, in addition to the functionality and carrier-grade performance required to support 4G services."

Designed as open, standard, and interoperable, OPEN WiMAX is a complete ecosystem that encompasses network equipment, consumer electronics, service offerings, and even the end-users' experience. OPEN WiMAX is the ecosystem of partners behind Alvarion's highly scalable 4Motion solution, which combines BreezeMAXTM and best-of-breed systems to create an operator-centric network solution for WiMAX.

4Motion is designed to enable service providers to offer subscribers fixed and mobile personal broadband services anytime, anywhere. The complete all-IP Mobile WiMAX solution is designed to be compliant with 802.16e-2005 and WiMAX Forum Network Working Group specifications.
Fully interoperable with 4Motion's Access Service Network gateways (ASN-GW), the Bridgewater Systems AAA Service Controller is a proven carrier-grade authentication, authorization and accounting (AAA) solution. It features a powerful policy and profile engine to allow service providers to control and manage access to advanced and differentiated services on a per-subscriber basis. The AAA Service Controller provides extensive support for mobile WiMAX often not available in legacy AAA servers, such as support for multiple EAP methods, dual RADIUS/Diameter protocol support, device and subscriber authentication, as well as mobile IP support.

"Our growing OPEN WiMAX ecosystem now includes Bridgewater's leading subscriber-centric policy management products, which enables us to provide more flexible options in an end-to-end turnkey offering to the mobile WiMAX market," said Rudy Leser, corporate vice president of strategy and marketing for Alvarion. "Together we will provide a compelling value proposition to the growing market for mobile WiMAX solutions, as Alvarion expands its 4Motion solution by continuing to add best-of-breed partners."

Under terms of the agreement, Alvarion gains the right to resell the AAA Service Controller and associated modules for WiMAX on a non-exclusive basis around the world.

With the expanding interest in WiMAX technology and deployments in the region, in addition to active interest from WiMAX Forum’s Brazilian member companies, the WiMAX Forum has created a permanent presence in this market with the appointment of Brazil Director, Mr. Luiz C. Moraes Rego, faculty member of the Getulio Vargas Foundation Business School of Sao Paulo (FGV-EAESP).

"I am very excited to represent the WiMAX Forum in this rapidly developing region," said Rego. "WiMAX is a technology that matters for the emerging South American countries' economies. A standards based technology like WiMAX will allow for quick deployment over very broad areas to help bridge the digital divide and provide businesses with more broadband solutions."

Rego will manage all of the WiMAX Forum activities in Brazil, with a particular focus this year on addressing regulatory and member operator engagement. An important driver of new growth is to bring broadband wireless access to thousands of small and medium sized cities presently underserved or not served at all. The presence of a WiMAX Forum office and director in Brazil will help to ensure WiMAX plays a major role in this new growth.

Brazil, in particular, is a potentially significant market for WiMAX technology deployments, as WiMAX technology is already being deployed by service providers including Neovia, Brasil Telecom, Grupo Sinos, TVA and Embratel. In addition many operators, businesses have announced trials and would like to leverage WiMAX technology for broadband connectivity and digital divide.

"Brazilian Telecom Industry after years of fast growth fueled mainly by a new regulatory framework and a huge unsatisfied demand shows signs of deceleration," said Rego. "An important driver of new growth is the potential to boost overall economic activity. WiMAX would have a major role in that."

The WiMAX Forum Brazil Office is the organization's sixth office, with additional offices located in the United States, China, India, Taiwan, and Japan.

With this acquisition and assuming closing of other pending spectrum purchases, Clearwire’s U.S. spectrum holdings increased to approximately 14.0 billion MHz-POPs, covering an estimated 223 million people with varying depths of spectrum. In addition, Clearwire holds approximately 8.7 billion MHz-POPs of spectrum in Europe, covering approximately 199 million people. Clearwire holds one of the world’s largest portfolios of next-generation wireless broadband spectrum in the frequency bands identified by the mobile WiMAX standard.