The new Nokia-Siemens (NOK)(SI) joint telecom equipment venture is starting to see more demand for WiMax technology. Management from the JV was quoted by Reuters as saying:
"WiMAX will make wireless broadband much cheaper to deliver — up to 10 times cheaper than current third-generation cellular — up to 10 times cheaper than current third-generation cellular telephony networks. But, while it provides fast Internet access, it is not very well suited for wireless voice calls."
Sprint (S) has already made the decision to use WiMax for its new North American wireless broadband network. The company is spending $3 billion and has large infrastructure partners including Motorola (MOT) doing the build-out.
The news has to be a headache for Qualcomm (QCOM). It builds the core 3G technology for much of the world and is in an IP and licensing fight with its largest customer, Nokia (NOK). Its stock has already been pulled down by concerns that its fights over patents rights could go on for another year or two.
For the time being, Viva WiMax.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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