A line in the sand: WiMAX and LTE face off: Demand to drive deployments

CHICAGO – As the wireless industry gears up for the new wave of technologically advanced networks, the market will determine where WiMAX and LTE will be deployed.
As WiMAX World 2008 kicks off today in Chicago, the two next-generation networks received plenty of attention during the 4G Executive Summit Tuesday. Industry leaders not only talked about market demand but also spectrum issues and cable companies becoming players in mobile networks.
Officials talked greatly about Monday’s WiMAX launch in Maryland by Sprint Nextel Corp. and Clearwire Corp. The Xohm wireless broadband service is intended to give Baltimore residents a third option for high-speed Internet access.
“It is the dawn of the next generation of technology,” said Berge Ayvazian, chief strategy officer for Yankee Group, who was the moderator for Tuesday’s summit.
WiMAX and LTE are both essential networks for the world because they will be utilized by the next generation of antenna systems, said Charlie Martin, Huawei Technologies CTO of North America. Individual market conditions and operators will determine which technology to deploy.
“When a customer tells us they are not sure what they should do in regard to LTE or WiMAX, it is clear cut to us,” he said. “It will depend on the specific market and the specific customer. It will be very market driven.”
Martin said Huawei, a Chinese-based company, has helped with 29 launches of WiMAX networks around the world.
Although mobile WiMAX technology has been launched in countries around the globe and in the United States, LTE is not expected to become available until 2010, said Chris Pearson, president of 3G Americas, which is a major supporter of LTE.
Pearson said for the new networks to succeed, there has to be seamless evolution and buy-in by consumers.
“It will be based on the market demand,” he said. “Consumers want devices. They want applications and they want coverage.”
Pearson said LTE is the right choice for the industry. The comment drew some laughter from the crowd.
“We welcome smart decisions,” he said.
With all the talk focused on the future of the two networks, Dr. Mo Shakouri, VP of marketing for WiMAX Forum, said supporters of WiMAX need to focus on how networks are working in current markets.
Shakouri said there are issues regarding the amount of spectrum available for future WiMAX use.
“We need to make sure WiMAX is succeeding where it is available,” he said, “This is a global phenomenon and we have to make sure those operators are making money.”
Shakouri said the future of WiMAX depends on the success of current operators, which number in 100 worldwide.
“Let’s crawl and walk before we look too far ahead into the future,” he said.
Fred Campbell, acting president and CEO of the Wireless Communications Association, agreed that spectrum would be an issue for any new technology networks. Campbell said the WCA is technology neutral. “There is not a lot of spectrum in wide bandwidth,” he said. “There is limited amount.”
Industry officials also see cable companies playing a major role in the wireless industry. Comcast Corp., Time Warner Cable and Bright House Networks have invested heavily in Xohm. Officials for Cox Communications have said the company is interested in moving into the mobile market.
“For cable companies, mobile is going to be a key factor,” said Dr. Peter Meissner, operating officer for the Next Generation Mobile Networks Alliance. “People want to be connected all the time. These cable companies are going to join the mobile market.”
Ayvazian noted cable companies are well represented at the WiMAX show.
“They are looking for a home,” he said.
Campbell said it will be interesting to see how LTE and WiMAX are deployed and in what markets. “We feel each one can play an important role,” he said.