WiMax, the broadband technology that can cover vast areas from just one base station has developed significant support in the US. Intel (INTC) and Motorola (MOT) have put money into developing the technology and invested heavily in recent IPO Clearwire (CLWR).
Sprint (S) is going to base its next generation broadband phone deployment on the tech.
Nortel (NT), the Canadian telecom equipment company, did not want to be left out. They have married up with Toshiba to build WiMax base stations for Japan. According to The Associated Press "the stations will be based on Nortel’s next-generation broadband wireless technology and Toshiba’s amplifier and miniaturization technology."
WiMax is still under-rated as competition for the broadband networks that most cellular companies are building. That is, of course, assuming that it works as well as advertising. Competing companies including Qualcomm (QCOM) have said that they are not overly impressed with how well WiMax works, but their stock is down over the last year, so they may want Wall St. to focus elsewhere.
Douglas A. McIntyre
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