Earlier this year, we interviewed Sequans executives and moderated a panel
session in which they participated (see references 1 & 2 below).  In 2010, we expect to see the Sequans SQN 1200 family of
silicon to be embedded in new types of multi-functional WiMAX
CPE, portable WiFi hot spots with integrated WiMAX radios, netbooks and (at long
last) smart phones with WiMAX based mobile Internet access.  That’s a lot to look
forward to, but there’s also promise and potential for a whole lot more.

In fact, many new and different mobile WiMAX devices are possible, including
eReaders, smart meters, multi-user portable game players, video cameras and
surveillance, and health monitoring instruments.  If the components are low cost,
highly integrated functionality, low power consumption and small size, then the
ingredients for new such new devices are in place. 

However, the key to realizing
a wide variety of devices will be a combination of several factors that are
predominantly controlled by the network operator.  Those include WiMAX coverage,
pricing plans, and business models network operators adopt with content
providers.  For example, the mobile/ portable subscriber would like wide
coverage, excellent availability, good performance, but only one bill from the
network provider-independent of the number of wireless devices owned which use
the WiMAX network.  (See Reference 3.  for more details on possible
devices for mobile broadband networks.)

Sequans Silicon Solution for Mobile WiMAX CPE and Devices

Taking advantage of Moore’s Law (to realize ever higher silicon functional
density), in house RF and mixed signal expertise, and the ever- popular ARM
core, Sequans has pulled off a tri-fecta with its latest generation of WiMAX
silicon. 

The SQN 1220 integrates a baseband (IEEE 802.16e-2005 MAC and PHY)
element, tri-band RF (2.3 – 2.4 GHz, 2.5 – 2.7 GHz, 3.3 – 3.8 GHz)
module, and an (ARM based) applications processor- all on a single
silicon die.  To an old time data communications chip architect and
microprocessor applications engineer (like this author), it’s an amazing feat!
The mixed signal processing (digital and analog) capability is especially
impressive.  Additionally, the SQN1220 implements dual transmit channels, which
enable uplink MIMO (as specified in Release 1.5 of the WiMAX Forum system
profile).  As pointed out in our first Sequans article (see Reference 1.) uplink
MIMO results in significantly increased link budget, improved cell coverage,
lower overall power consumption, and lower system cost.

The on-chip applications processor could be used for a variety of tasks,
including: SIP for VoIP, IMS and FMC functions, IP routing over the WiMAX access
network, residential gateway, diagnostics and test functions, smart meter or
instrument reading and control, user interface for a LCD screen and/or keyboard,
device commands and status indicators.  Ultimately, it will be left to the
ingenuity of the device maker to specify the software functions to be
implemented on the on-chip processor.

The SQN1210 is a single die, baseband – RF combo chip without the applications
processor.  It is designed for the smallest of mobile devices, such as mobile
handsets, smart phones, MIDs, and netbooks.  It may be used with notebook PCs
through USB dongles or ExpressCards, or directly embedded in PCI Express
MiniCards or Half MiniCards.  Zyxel has announced their use of the SQN1210 in a
USB dongle- the ZyXEL MAX-507 USB.

Care has been taken to reduce power consumption, which is a critical factor for
all mobile devices.  The SQN1200 family employs the state-of-the-art power
reduction techniques to extend battery life.  Smart software algorithms optimize
resource management for additional power reduction improvements.  The SQN1220 and
SQN1210 consume less than 350 mW of power with fully loaded MIMO traffic and
less than 0.5 mW in standby.

Sequans’ S3MAX software package includes the complete IEEE 802.16e-2005
software stack and all drivers and host applications required for a WiMAX end
system.  Host software includes drivers for all major operating systems (Windows
XP, Vista, Windows CE, MAC OS, and Linux), Sequans’ own connection manager, a
supplicant engine for EAP authentication, a fully-fledged OMA-DM client, and a
field diagnostic tool.  S3MAX also provides a full simulation and verification
environment, which can be easily customized to address specific device maker
needs.

Sequans has sampled the SQN1210 and SQN1220 chips to more than a dozen device
manufacturers who are currently developing next-generation products using that
silicon.  A wide variety of WiMAX products are now in design: USB dongles,
embedded modules for notebooks/netbooks/CE devices, multimode cellular handsets,
portable hotspots, and WiMAX CPE.  Let’s now examine the functionality of a few
of those new products.

In addition to the customers who are actively developing new products, there is
another group of manufacturers evaluating the SQN1200 family chips.  This
number is more than a dozen and is increasing over time.  Sequans expects that many of
these will convert to the ‘active development’ category above once they
recognize the value of the integration we’ve done, the performance, the small
footprint, the low power consumption, the IOT maturity, other features and
benefits. 

In 2010, Sequans expects its silicon to be inside new WiMAX CPE and mobile
devices, to be sold by many different WiMAX network operators.  Those operators
include: UQ Communications (Japan), Packet 1 (Malaysia), Yota and Scartel
(Russia), Axtel (Mexico), Unwire (Australia), Korea Telecom (South Korea), Globe
(Phillipines), Clearwire and its MVNO partner companies (e.g.  Sprint, Comcast,
and TWC).

Let’s look at a few of the new WiMAX end point products expected next year.

Multi-function WiMAX CPE

Consider that most WiMAX deployments today are for fixed broadband access-
effectively a DSL or cable modem replacement.  The SQN 1220 can be exploited in
WiMAX CPE for that application, which includes VoIP as well as a WiMAX modem
with a USB or Ethernet interface to a desktop or notebook PC.  Up until now, VoIP
over WiMAX required multiple boxes and cables.  With VoIP integrated into WiMAX
CPE there is only one box you plug your phone and PC into. 

Craig Miller, Sequans Business Development and Marketing Manager, says that
there are "about a half dozen" customers working on this type of WiMAX CPE for
2010 commercial availability.  Some of those products are currently being tested
in certification labs at the WiMAX Forum and network operators, according to Mr. 
Miller.  Sequans says their SQN1220 solution enables the WiMAX industry’s lowest
cost WiMAX CPE.

Sequans has partnered with Hellosoft to provide a very compact and cost
effective VOIP/ WiMAX capability for CPE.  They have integrated the Hellosoft’s
VOIP media engine into the SQN1220.  According to Craig Miller, " It’s a proven
set of high quality voice codecs available to customers developing VoIP CPE, and
it is available as part of our development license – customers do not need to
negotiate a separate license with Hellosoft.  Our integration effort means that
customers have less software integration and test effort to perform on their
own.  This should reduce their time to market and their development costs.  And,
since these codecs execute on the embedded application processor in the SQN1220,
the VoIP solution is extremely low cost."

Sequans CEO Georges Karam: "With Hellosoft’s VOIP media engine solution, we are
reducing complexity for our customers by offering a pre-integrated,
pre-validated VoIP and Mobile WiMAX total solution.  Adding Hellosoft’s widely
accepted and high quality voice capability to our already highly integrated chip
underscores our commitment to providing the highest performance at the lowest
cost, and to moving WiMAX toward mass market acceptance."

Opinion:  While Vonage offers a VoIP service over any broadband
connection, it would be more attractive if the WiMAX network operator offered
VoIP over (fixed) WiMAX service.  We understand that Clearwire offers such a VoIP
over (fixed) WiMAX service in all of the nation-wide markets that they are
deploying.  We believe that VoIP will have huge growth outside the U.S.  and that VoIP over WiMAX will be a very viable service if the CPE and the tariff are
reasonably priced.

4G Personal WiFi Hot Spots

Best exemplified by Clearwire’s Clearspot (made by Cradle Point), a 4G personal
hot spot is a battery powered WiFi AP/Router that fits in a briefcase.  You can
connect your notebook PC, iPOD touch, iPhone (or other WiFi equipped smart
phone), and other WiFi enabled gadgets to this portable hot spot, as long as
they are within 15 to 20 meters away.

Cisco has announced its intention to make such a unit this year.  Sprint sells a MiFi hot spot that connects to its 3G- EVDO based network.

Currently, 4G personal hotspots use a USB connection to connect to an external
WiMAX modem (AKA as a USB dongle or WiMAX dongle).  But in 2010 we expect to see
the WiMAX modem functionality integrated into the hotspot.  Mr.  Miller states, "Sequans
has several customers developing integrated WiFi/WiMAX portable hot spots." We
think this is a great idea – for both portable and in-home use.

Smart Phones with embedded WiMAX

To date, the only commercially available WiMAX mobile phone we are aware of is
an HTC device sold by Yota in Russia.  That device uses an earlier generation of Sequans silicon (the SQN 1130).  While no other WiMAX equipped smart phones have
been announced, we believe that HTC and Samsung will introduce such devices in
2010.  Sequans says that they have a couple of customers developing smart phones
with their new generation of WiMAX chips.  Obviously, they can’t disclose names
or timeframes.

Opinion: T his author independently concludes that the HTC phone will use
the SQN 1210.  We have tried to confirm this with HTC but were told that they
don’t comment on unannounced products.  We think the Sprint tri-mode phone
scheduled for next year will be from Samsung, as that company already has
produced the Mondi MID that works on CLEAR.  Furthermore, we think that the
mobile WiMAX enabled phones will use either GSM or CDMA for voice, rather than
VoIP over WiMAX.  This is because there are several problems with mobile VoIP,
including QOS guarantees, session continuity and handover/ inter-working with
cellular voice and the PSTN (or other TDM based voice networks). 

Columbia University Professor Henning Schulzrinne says,"Session continuity
between WiFi and 3G doesn’t work, in general.  I think the WiMAX problem is made
worse by the fact that initial deployments are going to be pretty spotty, so
vertical hand-off becomes more important than for traditional cellular voice."

Summary

Sequans believes they’re leading the WiMAX industry in the direction of ‘mass
market’ status, in the same way as WiFi ramped up when highly integrated
components made low cost devices and embedded interfaces ubiquitous.  The SQN1200
family is so highly integrated that it has the potential to remove cost as a
barrier to growth and adoption by device manufacturers.  This capability is
perfectly timed now that WiMAX network operators are finally showing signs of
the kind of broad coverage that could represent a very significant market
opportunity for the device manufacturers.  Sequans’ Craig Miller, "We believe
that mass market WiMAX can be a real phenomenon now – all the pieces are in
place." And we can’t disagree. 

In our opinion, Sequans is providing very valuable silicon and software
technology to the rest of the WiMAX ecosystem.  It is now up to the network
operators and device makers to exploit that technology to build a healthy
business model and move mobile WiMAX forward toward mass-market status.

__________

References

"We are very excited about this acquisition and believe that, together (the
combined company), will revolutionize the mobile Internet," said Tellabs
Marketing Communications Manager Ariana Nikitas.  She further stated the
acquisition would extend Tellabs mobile backhaul product portfolio (see CHART
below) to a fast growing adjacent market.  "The resulting products will
enable service providers to deliver richer experiences to mobile end users," she
said.

Tellabs has a large portfolio of transport and network management products for
wireless backhaul.  These include the following:

Analysis:

Tellabs recognizes the mobile Internet is taking off and WiChorus has a product
their service provider customers need to take advantage of this opportunity. 
Sales of smartphones are growing more than 30% a year while netbook sales have
been very strong.  People are spending more time surfing the Internet while
on the move.  As a result, Tellabs’ mobile customers expect mobile data
traffic to grow 30% to 50% a year for the foreseeable future.  AT&T
recently indicated its mobile traffic has quadrupled over the past year.

Such high growth demands scalable, next-generation network architectures to
deliver 3G and 4G multi-media and video services.  This acquisition will
enable the combined company to help facilitate delivery of those services, while
providing richer experiences to mobile Internet users.  It will enable
Tellabs to compete with Ericsson, Alcatel-Lucent, and Cisco (which recently
announced its acquisition of Starent Networks) in the 4G/3G mobile packet core
market.

Since Tellabs (and many other companies) haven’t been spending much money on
R&D, they were forced to make this acquisition to remain competitive in the
mobile backhaul market.  Independent of that, Tellabs has a very high
opinion of WiChorus’ mobility management and routing technology.

On a conference call Thursday, Tellabs CEO Robert W.  Pullen said the
Wichorus platform was a "purpose- built 4G (WiMAX, LTE) architecture that is
backward compatible with 3G (GGSN, HSPA, HSPA+)." As a result, it can be sold to
WiMAX operators now and 3G or LTE operators in the future.  Tellabs stated
there were two potential service provider customer types for the WiChorus
platform:

- Those that are optimizing their 3G mobile networks and evolving to 4G (LTE).
- Those that have leapfrogged 3G to deploy 4G (Mobile WiMAX and LTE).

Wichorus’ "best in class" deep packet inspection capability and performance was
particularly attractive to Tellabs.  It was said to produce much less
throughput degradation than competitor mobile packet core products. 
Tellabs claims that the WiChorus 4G packet core product offers eight times more
throughput than competitive offerings. 

The Wichorus SmartCore? platform was said to address the unique requirements of
the mobile Internet:

- Includes a full range of mobile IP products (from low entry price to highly
scalable) for applications including GGSN, LTE and WiMax, plus new application
enablement with superior DPI capability. 

- Offers 8 times more throughput, 4 times more simultaneous Internet connections
and active users, compared with competitive platforms in gateway applications.

- Uniquely combines world-class application analytics with a mobile core gateway
for improved traffic engineering and network optimization. 

- Enables customers to analyze and monetize more than 400 of the top mobile
Internet applications. 

- Makes mobile networks content-aware and context-aware, with personalized
application-awareness. 

- Outperforms other platforms in delivering mobile Internet capacity.  For
example, competitors’ capacity significantly degrades (as much as 30% to 50%)
during deep-packet inspection (DPI)

- Delivers new and differentiated applications such as Internet offload and
distributed LTE gateway.  The SmartCore? platform can offload as much as
70% of traffic at the network edge, increasing core network efficiency and
improving user experiences.  As a result, customers can save as much as 50%
in capital expenses, compared with the present method of operation. 

The WiChorus ASN Gateway is being sold to Clearwire and trialed by other mobile
WiMAX network providers.  Tellabs CEO Pullen said that the company’s next
product will be for "business services delivery" using femtocells and picocells. 

When asked to comment on future product plans, Ms.  Nikitas declined,
stating that the acquisition had not yet taken place and could not comment till
the merger had actually been consummated.

Opinion:

We think this is a very good move for both companies and we predict more
acquisitions and consolidation in the network equipment market.

Reference:

http://www.tellabs.com/news/2009/index.cfm/nr/79.cfm

While this technology works well for fixed access, it’s often been a real
challenge to use these frequencies for mobility due to its propagation
characteristics and to Doppler shifts (or more precisely the Doppler Effect),
which is more pronounced at higher frequencies above 3GHz.  From a
technology perspective, these shifts in frequency and wavelength result from a
source moving with respect to the medium, a receiver moving with respect to the
medium, or even a moving medium.  As modulated symbols are transmitted,
they interfere with one another, creating a phenomenon known as Inter Symbol
Interference (ISI).  ISI complicates symbol detection at the receiver,
often producing an unacceptably high bit error rate.

Consequently, there has been a perception that 3.5GHz spectrum should not be
used for mobility.  That thinking is now changing with the roll outs of
several 3.5GHz mobile WiMAX networks in Europe.  And if 3.5GHz can be
effectively used to deploy IEEE 802.16e mobile WiMAX networks, then operators
could provide both fixed/nomadic as well as mobile broadband access to
subscribers at a lower cost than at 2.5 GHz and lower frequencies. 

Indeed, there have been several deployments and recent announcements of
operators using 3.5GHz for IEEE 802.16e based WiMAX networks in Europe:

- Worldmax based in Amsterdam is using Beceem’s silicon and Motorola equipment
to deploy a nationwide mobile WiMAX network in the Netherlands at 3.5GHz . 
The operators’s service is currently deployed as a city-wide hot zone in
Amsterdam and early results have been quite encouraging. 

- Imagine Communication Group is deploying a nationwide mobile WiMAX network in
Ireland at 3.5GHz.  The network will use Motorola’s end-to-end WiMAX
solution to deliver voice and high speed data services to residential and small
to medium-sized enterprise customers as well as offering mobility in city
centers, using USB dongles.  More on Imagine’s WiMAX roll out later in this
article.

- Clearwire announced that it would deploy 3.5GHz mobile WiMAX in Malaga and
Seville, Spain next year, using RAN equipment from Alvarion and ZTE.  "We
intend to prove that WiMAX can work not only at 2.5GHz, but also at 3.5GHz,
which is the spectrum we have in Spain," Barry West, president of Clearwire
International, said during a press conference at the ITU Telecom World 2009 show
in Geneva.

- UK telecom regulator Ofcom has changed Freedom4′s spectrum license conditions,
allowing the operator to offer mobile WiMAX services across the U.K.  using
the spectrum it already owns.  (Note: Freedom4 is a joint venture between
Daisy Group and Intel Capital.) Freedom4 owns a broadband wireless spectrum
license consisting of two blocks of 84 MHz in the frequency band 3.6-4.2GHz. 
Ofcom’s move will enable Freedom4 to launch mobile WiMAX services, rather than
just fixed wireless access.  As a result, the company will be able to
directly compete with the UK’s five mobile network operators.  However,
Freedom4 has not disclosed any deployment time frames or other details of its
planned mobile WiMAX network. 

Imagine Communication’s WiMAX Network

According to a fact sheet provided by Imagine Communications Group, Ireland’s
broadband infrastructure is struggling to keep up with the demands of its modern
economy.  For broadband quality, Ireland ranks in 37th place out of 66
countries and behind countries such as Estonia, Greece, Poland, and Turkey. 
On the major cities ranking list, Dublin is ranked in 94rth place behind
locations such as Krakow, Ankara, Naples, Nanjing, and Istanbul.  One out
of three fixed lines in Ireland cannot get broadband and four out of 10 lines
can get a maximum of only 1Mbps.

In an attempt to greatly improve Ireland’s broadband infrastructure, Imagine
recently announced it will invest €100 million in upgrading to mobile WiMAX
technology, a move that could result in the creation of up to 200 new jobs. 
The Imagine WiMAX service is already in operation, with phase one of the rollout
covering 250,000 homes in Dublin, Wexford, Sligo, Tralee and Athlone to be
completed by mid-November 2009.  Imagine’s new network will not be
restricted to high-population areas, but will also be rolled out to smaller
towns and rural communities at a rate of 15 new WiMAX areas per month. 
Imagine’s CEO and founder Sean Bolger stated that Imagine plans to cover 90% of
the country by 2012 with WiMAX services. 

"Customers across Ireland will soon experience a leap forward in terms of
broadband access and speeds.  Motorola’s globally renowned WiMAX solutions
are quick to deploy, flexible and scalable and allow us to meet increasing
demand for next-generation voice and broadband data services at home, at work
and on the move," according to Bolger.

Sean Bolger, Imagine Communications

Bolger further stated that Imagine’s WiMAX service will debut at 8Mbps, but is
capable today of reaching 17Mbps and higher speeds.  According to
the companies website, the pricing for
consumers and businesses will be unveiled shortly, but Bolger promises it will
come at a lower price than current fixed line broadband services.  Bolger
told the

Irish Times it will be 50 percent cheaper than comparable Eircom products. 

He pointed out that Ireland has the highest fixed telephone costs in the world
and at €25.47 line rental is 70% higher in Ireland than the European average. 
Imagine also intends to allow other operators to wholesale its WiMAX service,
although he said it had not begun negotiations with anyone.

"4G broadband is not about speed but being more competitive." He went on to say
that Ireland has plenty of fiber, "now the problem is connecting to that fiber."
Bolger says WiMAX could solve that access problem. 

And Imagine owns lots of spectrum.  The company holds 88MHz of 3.5GHz
licensed spectrum in Dublin, Cork, and Waterford, 123MHz in Limerick and 60MHz
in the rest of the country.  In those cities, this is more than double the
35MHz held by each of the 3G mobile operators.

Motorola has agreed to provide a portion of the €100 million that Imagine needs
to replace its existing wireless nationwide infrastructure with WiMAX. 
Motorola will provide the RAN equipment as well as deployment, integration and
support services to Imagine.  Motorola’s Head of Sales commented, "Today’s
announcement is very significant for Motorola as we see Ireland as a key
strategic market for (mobile) WiMAX due to the digital divide and broadband
deficits which causes lower broadband speeds and higher prices than the rest of
Europe," he said. 

Intel is partnering with Imagine to supply technology for 3.5GHz mobile WiMAX
enabled notebook and netbook PCs.  Mr Jim O’Hara, General Manager of Intel
Ireland, said that WiMAX is a game-changing technology.  "Many people in
the country are operating on a 1Mbps speed at the moment, even if they think
they are paying for higher.  WiMAX is easily achieving 8Mbps, and this will
be increased.  Intel is going to provide WiMAX embedded laptops and PCs
from early 2010," Mr O’Hara concluded. 

These 3.5GHz mobile WiMAX deployments are great news for the WiMAX industry. 
As early indications suggest, these networks should be price competitive with 3G
networks while offering better performance and availability.  For true
mobility, the key question is when the mobile WiMAX embedded netbooks,
notebooks, and hand held devices are available that work at 3.5GHz.  We
hope it’s early next year.

References:

?We have had a huge explosion in data traffic,? said Ned Hooper, Cisco?s chief
strategy officer.   ?We expect the market for mobile data to double
every year through 2013.?

In a most revealing blog on his company’s web site, Simon Aspinall, Senior
Director of Service Provider Marketing provides motivation for Cisco’s
acquisition of Starent Networks.   WIth its purchase of Starent, Cisco
will enable the sending of IP content wirelessly via carrier networks.

"The next step in the evolution of the Internet is to make it available anywhere
and at any time, which requires the convergence of the mobile world and
Internet.   The ?Mobile Internet? will offer the services and
applications from the Internet on-the-move, and on any device.   This
market is growing rapidly, with IP-enabled Smartphones like the iPhone and
Blackberry, low-cost netbooks, games handsets, digital cameras and other
consumer electronics, mobile connected devices are becoming a part of everyday
life for millions of people around the world." he says.

Cisco has predicted that almost 64% of the world?s mobile data traffic will be
video by 2013, according to the

Cisco Visual Networking Index.

Aspinall added, "As a fast-growing provider of multimedia solutions designed to
enable mobile operators to deliver Mobile Internet to their subscribers, Starent
Networks is a key player in the Mobile Internet transformation.   The
company has more than 100 customer deployments in 45 countries worldwide, with
many of the world?s most prominent and innovative mobile operators.  
We believe that, together, Cisco and Starent Networks bring complementary
solutions designed to help accelerate the transition to the rapidly growing
Mobile Internet.   We believe the Mobile Internet is a huge transition
that is happening very quickly, and we believe this is the right time for Cisco
and Starent Networks to combine their strengths to enable operators to launch,
deliver and profit from the next wave of mobile multimedia applications and
services."

Cisco CEO John Chambers "believes in video, and points to how the early use of
the Internet in business systems resulted in faster economic growth in regions
where it was used," according to Peter Christy, an analyst at Internet Research
Group.   "Now that phenomenon has slowed down, Chambers is interested
in networking that facilitates human collaboration."

Starent?s main customer is Verizon Wireless, which accounted for about 70
percent of sales in the second quarter.   Other customers include
Vodafone Group Plc and Sprint Nextel Corp., according to Starent?s Web site.  
?Starent?s efforts to diversify away from Verizon may have been an uphill
battle,? Anil Doradla, an analyst at William Blair & Co.   in Chicago,
said today in a note to investors.   ?With Cisco?s backing, we believe
the company is better positioned to compete for business with Tier-1 mobile
operators outside Verizon.?

Yankee Group analyst Zeus Kerravala noted that while Starent makes carrier
equipment for a range of wireless protocols, including high-speed WiMax
technology, it also makes gear for LTE, the leading competitor to WiMax.  
Kerravala said Cisco’s interest in Starent is primarily the LTE component, which
gives Cisco the ability to broaden its product mix, much as competitors Nokia,
Alcatel-Lucent and Huawei Technologies have done.

Opinion:

We believe that the Starent acquisition is to position Cisco to compete in
mobile Internet infrastructure-initially with 3G protocols and later with LTE.  
We wonder if there is any mobile WiMAX in Cisco’s bag of tricks? Yes, we know
that Cisco is the "Core IP NGN" vendor to Clearwire and several WiMAX providers,
but that has nothing to do with the mobility portion of the WiMAX networks.

The CTIA – The Wireless Association® ("CTIA") has recently petitioned the FCC
to reallocate 800 MHz of spectrum for wireless broadband providers by 2015 (see
next section of this article).  At his October 7th CTIA Conference keynote
address, FCC Chairman Julius Genachowski made reference to that petition by
saying that a lack of licensed spectrum is "a looming crisis" as U.S. 
consumers increasingly rely on mobile devices such as smart phones, netbooks,
eReaders, etc. that require heavy wireless data usage. 

In his address, Genachowski said that the FCC would examine how to reallocate
spectrum for wireless Internet services and look towards ways to promote
secondary markets for airwaves, giving companies that hold spectrum licenses the
right to lease those licenses to others.  "No sector of the communications
industry holds greater potential to enhance America’s economic competitiveness,
spur job creation, and improve the quality of our lives," Genachowski said. 
"My goals with regard to mobile are the same that define and drive all our work:
fostering innovation and investment, promoting competition, empowering and
protecting consumers, all in an effort to help ensure the U.S.  has a
world-leading communications infrastructure for the 21st century.  As this
audience knows, it takes years to reallocate spectrum and put it to use. 
And there are no easy pickings on the spectrum chart."

Genachowski went on to say that the FCC would also try to clear obstacles for
wireless network operators trying to install new 4G networks, including speeding
up approvals for new cellphone tower construction, which often are met with
local community resistance.  In this regard, the FCC will propose a federal
"shot-clock" on tower-siting, while still being sensitive to local
jurisdictions.  The siting of towers has long been an obstacle for wireless
carriers and tower companies as subscribers embrace mobile services, but city
and local governments often don’t want the accompanying infrastructure needed
for those services.  Genachowski said he understands that Internet
providers and wireless network operators need to manage their networks. 
"We recognize there are differences between wired and wireline network
technologies," said Genachowski.  "They are different networks and because
they are different, I have said the rules that are adopted need to allow for
reasonable network management.  But we need to have clear rules of the road
for everyone regardless of how they access the Internet."

In a press release issued shortly after Genachowski made his keynote remarks,
AT&T Wireless Division CEO Ralph de la Vega called for a fact-based discussion
with the FCC.  "Before we begin ‘fixing’ what isn’t broken, we need to be
thoughtful about the consequences," said de la Vega. 

In reaction to the Commissioner’s speech, Sprint issued a press release that
supports Mr.  Genachowski’s recognition of the importance of mobile
broadband networks.  "Sprint Nextel shares with FCC Chairman Julius
Genachowski the view that American business and consumers benefit from the
deployment of 4G mobile broadband networks.  At Sprint, we are proud to be
the first and only nationwide wireless carrier to offer 4G (i.e.  mobile
WiMAX) in the United States.  For Sprint customers, 4G isn’t the future, 4G
is here now.  Sprint 4G is available in 16 markets today and we expect to
offer Sprint 4G service to 120 million people in 80 markets by the end of 2010."

"Sprint is pleased that the Chairman recognized that there are real and relevant
differences between operating wired and wireless networks.  Sprint wants
customers to be able to access the applications and the Internet sites they
want, when they want.  We look forward to working with Chairman Genachowski
and the FCC as they create policies that meet the expectations of consumers,
continue innovation in device development, and preserve the ability of carriers
to manage networks in a reasonable and responsible manner."

The CTIA Filing- A Request for 800 MHz of Additional Spectrum over Six Years

As the FCC moves forward with the development of a National Broadband Plan,

the CTIA filing urged the FCC to "commit to identifying and allocating a
significant amount of spectrum – with a goal of at least 800 MHz – for licensed
commercial wireless services within the next six years.  While it is
impossible to quantify precisely what amount of additional spectrum would be
"future proof," such an allocation would be an important step towards meeting
rapidly accelerating demand and maintaining U.S.  leadership in the global
mobile broadband marketplace."

Recognizing the long lead times necessary to achieve such major spectrum
allocations, CTIA urged the FCC to begin immediately.  They also requested
policymakers work to meet short-term needs by pairing and allocating
readily-available spectrum in the 1755-1780 MHz and 2155-2180 MHz bands for
licensed commercial wireless use as quickly as possible.

"With this filing, CTIA provides further evidence that identifying and
allocating significant amounts of additional spectrum for licensed commercial
wireless services is imperative if U.S.  providers are to continue to lead
the wireless world by expanding wireless networks and services to meet rapidly
expanding consumer demand."

CTIA highlighted the following critical points for assessing U.S. 
commercial wireless spectrum needs:

-The ITU has estimated that commercial wireless will need an allocation of 1,300
MHz by 2015 – meaning an additional 800 MHz of spectrum in the U.S.  – in
order to meet surging demand of mobile broadband services.

-56% of Americans have accessed the Internet by wireless means.
-Mobile wireless broadband growth continues to outpace every other broadband
platform, with net additions greater than those of DSL and cable modem combined.

-Pew Research estimates that, by 2020, mobile devices will be the primary
Internet devices for most people in the world.

-Bandwidth-intensive applications driving mass-market adoption of mobile
broadband include highly sought after consumer and business applications such as
mobile video, social networking, enterprise productivity, user-generated
content,
instant messaging, location-based services, and Web 2.0 applications.

-Watching a YouTube video consumes 100 times the bandwidth of a voice call.

-Estimates place the mobile data traffic footprint of a single mobile subscriber
in 2015 at 450 times what it was in 2005.

-The Rysavy paper [1] concludes that "several users within the same cell sector
engaging simultaneously in high throughput applications (e.g., video
streamlining) can quickly strain the network impacting the user experience for
every consumer
accessing the network, even if they are not themselves engaging in bandwidth
intensive activities."

-The Rysavy paper also finds that "it is unlikely that operators will be able to
deliver satisfactory service in the future at these high traffic volumes using
existing spectrum."

-Our global competitors have launched commercial wireless spectrum deployment
plans that outstrip U.S.  resources literally by hundreds of MHz.

So what does all this mean?

Essentially CTIA is asking the FCC to work with the Federal government to
identify and allocate up to 800 MHz of additional spectrum over the next six
years.  They have also have requested policymakers to meet short-term
spectrum needs by pairing and allocating readily available spectrum. 
Wireless industry lobbyists have spent months trying to persuade congress to
pass legislation that would require the government to do an inventory of the
U.S.’s airwaves and how they are being used.  The U.S.  government
controls much of the available airwaves, which are set aside for military and
other official uses.  If the government was to find that chunks of spectrum
it owns is not being used efficiently, that spectrum could be freed up and
auctioned off to wireless network operators.

Immediately after CTIA’s filing, President and CEO Steve Largent said: "As the
(FCC) Chairman and other FCC Commissioners understand, spectrum is our
industry’s backbone and is what encourages innovation and competition.  In
order to facilitate the ‘virtuous cycle’ of the industry, more spectrum must be
made available.  As spectrum is brought to market, the virtuous cycle
begins, as networks are upgraded to add capacity and greater capabilities,
handsets are then developed to take advantage of next generation networks,
application and content developers then create new content to take advantage of
new handset capabilities, and ultimately, consumers demand more.  It’s a
cycle that never ends as long as spectrum is available."

"The (wireless) industry needs access to more spectrum so we can continue to
meet the growing consumer demand – whether it’s for personal reasons such as
mHealth or for environmental reasons such as smart grids.  Other countries
around the world have recognized the need to facilitate this virtuous cycle and
have identified hundreds of megahertz of spectrum to reallocate for licensed
commercial use."

Qualcomm: More Wireless Spectrum is Urgently Needed

On October 8th, Qualcomm’s father and son executives Irwin & Paul Jacobs sent a
clear message that more wireless spectrum is urgently needed to sustain current
trends in wireless data traffic.  Like AT&T and other incumbent wireless
carriers, they warned against strict wireless net neutrality regulation that
could restrict operators’ ability to manage their networks.

Paul Jacobs, Qualcomm’s current CEO, said that engineers are at their limit in
terms of squeezing out data transfer efficiencies within the current frequency
bands.  "We’ve done what we can in the lab to make mobile devices more
efficient," he said.  "We will have to use different tricks now to get to
the next level." Paul said that wireless operators, when building the next
generation of 4G wireless networks (e.g.  LTE which Qualcomm supports),
will have to build more dense networks with towers spaced closer together. 
The younger Jacobs said that wireless operators also need to add more capacity
to their backhaul networks.  The problem today is that many connections
from the cell towers to the backbone don’t have enough capacity to support the
traffic coming from within the cell sites.  As more cell sites are added
and bandwidth per cell site increases, this problem will only get worse. 
Continuing Paul said: "With data there are large peak to average ratios, Data
traffic is very bursty, which means you need more head room in the backhaul
network."

Qualcomm founder and Chariman Irwin Jacobs said that managing the interference
among multiple radios will be a challenge, but that engineers will be able
respond with a solution.  He suggested using femto cells, which create
personal cell sites to propagate cellular phone signals in homes or offices.

Paul Jacobs said that he thinks Mr.  Genachowski understands the wireless
industry’s challenges.  But he also went on to say that other regulators
and politicians may need more of an education.  "During the Internet bubble
there was all kind of funding for dark fiber," he said.  "And I think
people thought carrying those bits was free.  But it’s not.  It’s
expensive.  And I think the regulators may not realize how expensive it
could get."

That doesn’t mean eliminate licensing or exclusive licenses.  But it does
mean that "expand capacity" can no longer be equivalent to "find more spectrum."

Alternative Approaches:

At the CTIA conference, Ravi Potharlanka, COO of wireless backhaul provider
FiberTower, said he was looking to get more spectrum from TV broadcasters. 
He recommends setting aside up to six TV channels in rural areas for wireless
use, with enough separation from broadcasters to eliminate "practically any
possibility" of interference.

Speaking on a CTIA panel titled "Facilitating U.S.  Wireless Leadership"
Gig Sohn, President of Public Knowledge, said the FCC should follow through with
figuring out whether the unlicensed devices it has already approved in the TV
band be allowed to boost power in rural areas.  Furthermore, she said that
it would be impossible to wrest control over spectrum held by incumbents with
"most of the spectrum that would have value to industry." But she wasn’t talking
about TV broadcasters.  In fact, they have already given up a quarter of
their spectrum in the DTV switch, and share what they have with unlicensed
microphones and, more recently, lower powered wireless devices.

Sohn went on to say that the groups not willing to share spectrum are the
Defense Department and Federal Aviation Administration.  "We believe that
it will be impossible to convince government to abandon the spectrum it
controls, and that the better course is for the FCC, working with the National
Telecommunications and Information Administration, to promote shared use of
federally-controlled spectrum."

Prescription for Universal Broadband Access in the US:

In an earlier interview, SCU Law Professor Allen Hammond and founding director
of the Broadband Institute of
California, detailed several key recommendations for making broadband access
pervasive and affordable to all living in the U.S.  These include:

-Federal government should release the White Space spectrum (the unused portions
of the new digital TV frequency bands- up to 700 MHz) for unlicensed Broadband
Wireless Access (BWA).  The spectrum released should have good signal
propagation characteristics in order to penetrate trees and buildings in the
signal path.  The cost to procure that spectrum needs to be low or zero to
encourage smaller network providers.  Regulatory barriers should be removed
from the process of operating and maintaining such BWA networks. 

-Other spectrum suitable for BWA should be made available by the federal
government to instigate the build-out of broadband wireless networks. 
Public-private partnerships should be encouraged to build such networks. 
Regulatory barriers should be relaxed. 

-A national "web of wireless networks" should be created that can be used in
responding to emergencies such as earthquakes, fires, hurricanes, floods,
tornados, national security threats, etc.  The federal government should
encourage inter-connection and interoperability of the multiple heterogeneous
municipal wireless networks that already exist.  By interconnecting such
networks and developing compatible network equipment, the U.S.  can
automate and co-ordinate the response to many different types of emergencies and
security threats.  After the Hurricane Katrina failures, most of us can
appreciate the necessity of a quick, automated response to emergencies, where
information is transmitted and shared over high-speed broadband wireless
networks.  Such a national network would be most valuable to the Dept of
Homeland Security.

- The National Broadband Plan should not prohibit municipal and private business
joint ventures to build broadband networks.  Rather, they should be
encouraged.  In such partnerships, the city becomes the anchor tenant while
a private carrier builds out the network.  There should be a significant
number of city government entities that use the network to establish a critical
mass of subscribers and traffic.  In the past, large incumbent telcos (e.g. 
Verizon) argued that building such a public- private network would discriminate
against them.  Prof.  Hammond believes that the FCC and federal
government should demand actual proof of such discrimination, rather than
tacitly accept the assumptions of the incumbent network provider. 
Regulatory barriers should be dismantled for broadband network build-outs. 
As a case in point, Allen notes that MSO’s and incumbent telcos lobbied their
opposition against municipal wireless networks to state legislatures.  As a
result, at least 16 states prohibited or severely restricted municipalities from
building wireless networks.

-Stipulate funding mechanisms (beyond the Broadband Stimulus bill), which are
needed for broadband network construction, operation, and maintenance as well as
subsidies to low income residents. 

_____________

Footnote:

[1.] Mobile Broadband Spectrum Demand, Rysavy Research, Dec.  2008 (http://www.rysavy.com/aboutus.html)

 

In this article we detail Intel’s newly announced mobile computing plans and its
reaffirmation of its commitment to mobile WiMAX.  We will examine the
following:

- Roadmap for Intel’s Atom processor, which is targeted at netbooks, MIDs, and
other hand held mobile computing devices.

- Establishment of the "Intel Atom Developer Program."

- A new version of Moblin – Intel’s Linux-based operating system intended for
netbooks and MIDs. 

- Reaffirmation of Intel’s WiMax commitment via a short progress report and
Clearwire demonstration.

More information on this year’s Intel Developer Forum
can be found here.

IDF Highlights:

1.  Intel’s Atom processor (now using the Menlow platform) is
currently sold into netbooks, but not hand held devices where power consumption
is a huge issue.  Intel plans to integrate more functionality into Atom,
reduce power consumption, and shrink the die sizes by half. 

Editors Note:  Atom and other "System- on a -Chip (SoC)" platforms
have their own road map schedule that is different from Intel’s PC client and
server products, which operate on Intel’s famous "tick-tock " road map schema. 
In particular, the Atom/SoC line will trail the leading PC and server products
by about one semiconductor process generation, or "tick." Major architecture
upgrades — or "tocks" — also will be different from the PC client and server
road map.

The new Moorestown platform -to be available in mid 2010- shrinks and integrates
more functions into fewer chips so that it can be embedded into mobile Internet
devices (MIDs) and larger smart phones.  It also adds hyper-threading to
Atom, boosting performance in threaded apps.  Built on a 45nm process,
Moorestown will greatly reduce power consumption (especially idle power)
compared to Menlow.  Citing a combination of architectural, design and
process enhancements, Intel VP David Perlmutter discussed some of the innovative
techniques that Intel is implementing in Moorestown.  These include
"Distributed Power Gating," for improved performance and major reductions in
power and thermal envelope.

Mr.  Perlmutter also highlighted Intel’s next generation of mobile
processors, codenamed "Arrandale," which brings the Nehalem micro-architecture
to mainstream laptops.  These chips will integrate the dual-core CPU and
graphics in the package and incorporate the 32nm manufacturing process and
second-generation high-k metal gate transistors for increased performance and
power efficiency for mainstream mobile PCs.  This integration of platform
components will continue into the future with a fully monolithic processor on
32nm, codenamed "Sandy Bridge."

These technologies help to achieve up to a 50x improvement in platform idle
power reduction compared to Intel’s first generation "Menlow" platform. 
The reductions are enabling Intel to establish new thresholds in ultra low power
while making it possible to run the full Internet and media-rich applications in
handheld devices, according to Perlmutter.

In his opening day keynote speech, CEO Paul Otellini explained, "At Intel,
Moore’s Law is alive and thriving.  We’ve begun production of the world’s
first 32nm microprocessor, which is also the first high-performance processor to
integrate graphics with the CPU.  At the same time, we’re already moving
ahead with development of our 22nm manufacturing technology and have built
working chips that will pave the way for production of still more powerful and
more capable processors."

Editors Note:  It wasn’t too long ago that 90nm processors were the
norm, and 65nm processors were cutting edge. 

For sure, Intel is serious about pushing its Atom-based SoC platforms into an
increasing number of product categories.  CEO Otellini even predicted "a
future where Intel ships more SoC cores than standard PC cores."

2.  The Intel Atom Developer Program was unveiled during a keynote
speech by Renee James, corporate vice president and general manager of Intel’s
Software and Services Group.  This effort encourages independent software
vendors and developers to create mobile applications.  Intel is partnering
with notebook and netbook manufacturers, including Acer and ASUS, to create
multiple application stores where applications and application building blocks
for Intel-based netbooks and handhelds will be sold. 

"The Intel Atom Developer Program will drive new innovative applications for
consumers and new revenue streams for software developers," said James.  "The new program facilitates the creation of applications that
consumers can use with confidence knowing they were optimized and validated for
Intel Atom processor-based devices.  We want to fuel the growth of Intel
Atom-based products designed for the mobile lifestyle," Continuing, he stated,
"The netbook has become one of the most popular consumer devices in the market
today, but its true potential has been limited by applications that are not
optimized for its mobility and smaller screen size.  The Intel Atom
Developer Program provides a great opportunity for developers to create useful
and inventive applications that will unlock a netbook’s potential while opening
a new sales and distribution channel."

To provide the broadest choice of applications across platforms, the Intel Atom
Developer Program will support multiple operating systems and run-time
environments.  Run-times enable developers to use a single code base to
support multiple device platforms and avoid extensive reprogramming, thereby
reducing development costs and time-to-market.  Run-times such as Microsoft
Silverlight allow developers to access multiple classes of customers and deliver
rich applications for Windows and Moblin-based environments using a single
toolset, Visual Studio and the .NET Framework.  For more information,

please visit here.

Intel no doubt wishes to replicate the success of the iPhone App Store by having
its OEM vendors create App stores for their Atom-powered devices.  Taking
it one step further, Intel introduced its own "App Store" for its Linux-based
Moblin operating system (see discussion in 3.  below).  Interested
developers can join the program now at
this new site.

Intel states, "You create innovative network applications – we take care of the
rest." Let’s see if this works out well for all concerned.

3.  Intel introduced a new version of Moblin – its Linux-based
operating system for netbooks, MIDs and other hand held devices.  Among
several new features, Moblin 2.1 supports a new interface appropriate for the
screens you see on MIDs and smart phones.  Additionally, Moblin 2.1 builds
in capabilities like native touch screen input and gesture support, new user
interface features, and support for more hardware drivers.  It also
includes incremental upgrades that expand the usability of the OS.

Moblin was originally developed and promoted by Intel as an OS for netbooks. 
At IDF, an Intel representative said that with Moblin 2.1, the OS will now come
in three versions: for handhelds, netbooks and nettops.  (A nettop is an
inexpensive desktop about the size of a hardcover book to which key boards, mice
and monitors can be connected.) For more information,
please visit here.

4.  Intel is still very committed to mobile WiMax - even as global
mobile carriers rush to implement various versions of 3G and look towards LTE in
the future.  During his keynote speech, David Perlmutter, executive vice
president of Intel’s mobility group, stated:

"Another cool factor is connectivity.  This is the era of getting
connected.  Intel is delivering the total mobile experience on each device,
offering different levels of performance and power in sleek form factors coupled
with compatibility, a superior mobile Internet experience and embedded WiMAX
wireless broadband.  We’re truly taking mobility to the next level of
cool."

Perlmutter continued, "A laptop generates more than 15 times the data of a smart
phone.  This is generating stress on 3G networks.  Last year we
introduced the first embedded WiMax that goes into notebooks.  But having
products with WiMax doesn’t matter.  It’s all about having networks,
because if you cannot connect, then it doesn’t matter.  And we have
networks being built in North America, in Russia, in Japan, and we have networks
already there.  We are building with our partners networks in other places
like India, Malaysia, Taiwan.  And many, many other places have all sorts
of mobile and fixed WiMax all over the globe."

In closing this discussion topic, Perlmutter said, "But I will better have
someone that build networks talk about it." Peter Cannistra ¹ , VP of
embedded devices at Clearwire was called to the stage.  Mr.  Cannistra
talked about his company’s "ability to put the mobile Internet in your hand, in
a broadband way." In particular, Clearwire customers are realizing average
downstream speeds of 3 to 6 M b/sec, bursting up to 10M b/sec, according to
Cannistra.  He then demonstrated a videoconference over WiMAX, which showed
superior performance compared to an equivalent 3G videoconference.  The
comparison was a CLEAR win for mobile WiMAX (pun intended).

Perlmutter’s keynote webcast includes this videoconferencing comparison as well
as his comments about the Atom processor road map is

archived here. 

Comment and Analysis:

There is no doubt that Intel is focusing on mobile computing with its next
generation of microprocessors, Atom developer program and new version of Moblin. 
Will they be able to compete with future versions of ARM or Qualcomm’s
Snapdragon with embedded 3G cores?

Up till now, the key issue has been power consumption, with Intel’s Menlow
platform consuming too much power to be used in handheld devices.  Intel’s
only hand held design win that we are aware of is with LG – a 3G MID that will
use the Moorestown platform.  No deliverable products have been announced
for the Intel- Nokia strategic partnership.  We expect Moorestown to be
used with embedded 3G SoC capability with 3G cores from Ericsson, Nokia and
possibly other vendors.

So we think the key test, will be commercial acceptance of Intel’s "Moorestown"
platform, scheduled for 2010, in eBook readers, MIDs and smart phones. 

With Qualcomm now making a big mobile computing push with its Snapdragon (ARM
based) processor and with their Gobi 2000 platform that supports almost all 3G
wireless network interfaces we think they will be a formidable competitor. 
At an open house last week, we learned that Qualcomm is producing a wealth of
software innovations to advance the always-connected mobile world.  The
mobile phone chip powerhouse now has more software engineer’s then hardware
engineers and is moving ahead full steam with mobile computing research
projects.  Qualcomm is mobile OS neutral, but are working with many device
vendors using the Android platform.

And with the potential for Microsoft to port Windows Mobile 7 to ARM-based
platforms in the future, we believe Intel could potentially devote even more
resources to Moblin in order to help deter Microsoft from supporting Windows on
ARM as well as Android on Snapdragon.  The Atom Developers program will
also need to be strengthened in order to offer a variety of applications that
will run on that platform.

_________________

Footnotes:

1 – Cannistra oversees the company’s strategy to embed mobile WiMAX
functionality into notebooks, netbooks and a wide range of consumer electronic
devices.  He is responsible for Clearwire’s strategic relationships with
Intel, PC OEMs and numerous other companies that aim to make wireless broadband
accessible to more people and devices.
 

The CLEAR developer network is a precursor to commercial service planned for the
San Francisco Bay Area¹ in 2010.  It will cover more than 20
square miles in Santa Clara, Mountain View and parts of downtown Palo Alto,
California.  The current coverage footprint includes the local campuses of
Intel and Google, two founding Innovation Network supporters who have also
commenced their own internal 4G application development programs.  Cisco’s
campus will receive coverage in the coming months as the network expands. 
Clearwire will update the coverage area maps over time.  Download detailed
maps of coverage areas with suggested drive routes and test locations:

- Palo Alto

- Santa Clara

- Mountain
View, Los Altos, Sunnyvale

Clearwire plans an aggressive expansion program for CLEAR in the U.S., with a
combined coverage area that would service up to 120M people by the end of 2010.

Logistics for the Innovation Network

After reviewing terms and conditions, qualified software application developers
that live or work in Silicon Valley can register for free mobile WiMAX service,
as long as they buy or own a Clearwire approved terminal (see list below). 
Bright House, Comcast, Sprint, and Time Warner Cable will join Cisco, Intel and
Google in support of Clearwire’s mobile WiMAX application development
initiative.  All those companies except Cisco are strategic investors in
Clearwire.  The first four plan to resell the CLEAR service, so they have a
lot to gain.  All of the participants will aid in promoting the program and
have deployed their own respective development resources into the network (e.g. 
RAN equipment, IP NGN systems, devices, software, etc). 

Infrastructure providers include: Motorola, Samsung, Huawei (these three vendors
supply RAN equipment), and Cisco (Core IP NGN Network). 

Editor’s Note:  Allen could not confirm that all of these
infrastructure vendors would be involved in the Innovation Network instance.

Components, modules and applications were said to be available from: Intel,
Google, Cisco, and Beceem (chip set).  Netbooks with embedded mobile WiMAX
interfaces are available from Lenovo, Dell, Toshiba, Samsung, and Fujitsu for
use in the program.  The new Samsung Mondi MID handheld is also supported
on the Innovation Network. 

Editors Note:  only the mobile devices listed are eligible for use
on the CLEAR Innovation network.  Home modems and CLEAR VOIP products and
service are not available on the Innovation Network.

To access the network, developers can purchase a Clearwire WiMAX USB modem for
$49.99.  Developer-owned, CLEAR "network-ready" mobile WiMAX devices, such
as the Samsung Mondi and WiMAX-embedded Intel-based PC’s, are also eligible for
the program.  To qualify, developers must register for Clearwire’s
developer program and describe the mobile WiMAX applications/ development ideas
they wish to pursue.  Interested developers can sign-up at

http://developer.clear.com/innovation.

Developers can expect to realize peak download speeds of up to 10 Mbps on this
network, with average download speeds of 3 to 6 Mbps.  In contrast, some of
today’s 3G wireless networks typically deliver download speeds of between 600
kbps – 1.4 Mbps, according to Clearwire.  Unlike Wi-Fi, mobile WiMAX
provides service areas measured in miles, rather than feet.  In addition,
the IEEE 802.16e technology used supports full mobility and enables seamless
handovers from tower to tower, similar to cellular networks. 

Goals and Applications for the Innovation Network

Flanagan stated the goal of the Innovation Network was "to stimulate software
development for Internet applications, broadband media content, Internet and
integration services." Allen identified several target applications: streaming
media, LBS’s, on-line gaming, voice and communications, social media, networking
collaboration, optimization and performance tuning.

Clearwire will support developers by providing: CLEAR Platform API and network
documentation, Location and Connection APIs along with associated guidelines. 
Educational content will be available for mobility, optimization/ tuning,
network setup, operations and coverage maps. 

In a short video, Clearwire CTO John Saw articulated the applications the
company expected to be "enabled" by the Innovation Network.  These
included: mobile video, location awareness, voice, social networking and gaming.

Click here to view
Clearwire’s CTO Dr.  John Saw discussing the Innovation Network

Q&A

In answer to a question, Mr.  Flanagan echoed a 4G World comment from
Clearwire CEO Bill Morrow that both WiMAX Pico cells and femtocells would play
an important role in "4G networks" and be critical to their success.  In a
follow up email exchange, Allen stated: "In my opinion, it will take some time
before they become critical.  Just as it took a lot of years for them to
become deployed on previous generation cellular networks."

This author asked if Clearwire might have trouble motivating garage shops and
small software developers to participate in the Innovation network program,
considering the absence of any smart phones or hand held devices (except the
brand new Samsung Mondi).  Allen said that Clearwire was very aware of that
issue and together with its investors would be able to recruit a critical mass
of developers for the network.

Clearwire will participate as a platinum sponsor of the Sprint Open Developer
Conference scheduled for October 26-28 in Santa Clara, CA (this author is
registered to attend).  Developers can register to attend the conference
at: 

http://developer.sprint.com/devcon2009.

Flanagan suggested that developers interested in working on applications for
mobile WiMAX might want to attend the conference to learn about the Innovation
Network directly from Clearwire executives. 

Editor’s Note:  This author expects important new announcements from
Sprint regarding handsets and perhaps other devices that will operate on CLEAR.

What the Big Boys Have to Say

"We see tremendous potential for true, mobile broadband to act as the catalyst
for new and compelling Internet applications that leverage our 4G bandwidth,
free of the confines associated with wired connections," said John Saw, Chief
Technology Officer of Clearwire.  "Our goal is to harness the concentration
of developer talent in Silicon Valley and accelerate the pace at which these
disruptive services are being developed."

"Our long history of innovation with WiMAX, including our development efforts in
Portland, OR, allowed Intel to be among the first in the U.S.  to have
access to this exciting, next-generation 4G environment," said Sriram
Viswanathan, vice president of Intel Capital and general manager of WiMAX
Program Office at Intel.  "Along with the WiMAX ecosystem, we look forward
to expanding these mobile broadband resources and efforts in an area home to the
one of most technology-savvy groups of individuals in the world."

"Mobile broadband is fundamentally changing the way people use the Internet, and
4G networks like Clearwire’s have incredible potential," said Larry Alder,
mobile product manager at Google.  "We are excited to see how developers
will take advantage of this unique asset as Internet users increasingly expect
connectivity regardless of their device or location."

"Cisco’s Internet Protocol Next-Generation Network infrastructure is playing a
key role in the Silicon Valley Innovation Network," said David Goeckeler,
general manager of Services and Mobility business unit, Cisco.  "An IP
network is the right platform to deliver on the promise of mobility and put 4G
services in the hands of some of the most talented and creative developers in
the world."
"At Bright House, we’re always searching for new and innovative capabilities to
bring to our customers," said Leo Cloutier senior vice president, strategy &
business development, Bright House Networks.  "We’re strongly supportive of
this initiative and its ability to leverage the creative talent of developers in
the region for the creation of new mobile broadband applications."

"Combining the speeds of broadband with the mobility of wireless communications
gives the development community in Silicon Valley a unique opportunity to create
differentiated applications," said Tom Nagel, Comcast’s senior vice president
and general manager for Wireless.  "Comcast is pleased to support this
development program to spur further innovation with 4G capabilities.  The
initiative is consistent with our own commitment and efforts to encourage
developers to leverage open standards such as Tru2way."

"Sprint continues to demonstrate its leadership in the growth and deployment of
4G networks and technology and in the developer community," said Len Barlik,
vice president of wireless and wireline services for Sprint.  "Sprint is
the first carrier to offer an open community that gives developers the platforms
and network to create innovative applications and the ability to introduce new
services to the market.  The availability of 4G in the Silicon Valley is a
great opportunity for developers to immediately begin the development of the
next generation of wireless applications."

"Time Warner Cable looks to provide services that are simple, easy to use and
give customers more control and convenience," said Michael Roudi, group vice
president of wireless services for Time Warner Cable.  "We are proud to
support the efforts of developers in the Silicon Valley to experiment and create
new applications which will take advantage of the mobile broadband network and
enhance our customer’s wireless experience."

Conclusions

The Silicon Valley community is very pleased to have Clearwire’s Innovation
Network up and running.  In particular, IEEE ComSoc SCV members have
expressed a strong interest in mobile broadband applications for netbooks and
notebooks as well as for hand held devices.  We hope to report results of
these application developments in forthcoming articles.  IEEE ComSoc SCV is
also looking forward to hosting a panel session in early 2010 where Innovation
Network participants will describe the tangible take-aways and lessons learned
from this very important endeavor.

_________

Footnotes:

http://www.wimax.com/commentary/blog/blog-2009/april-2009/Commercial-WiMAX-Network-Planned-for-Silicon-Valley-0410

Web References

http://newsroom.clearwire.com/phoenix.zhtml?c=214419&p=irol-newsArticle&ID=1331811&highlight=

http://www.wimax360.com/profiles/blogs/silicon-valley-becoming-the-4g

The CLEAR developer network is a precursor to commercial service planned for the
San Francisco Bay Area¹ in 2010.  It will cover more than 20
square miles in Santa Clara, Mountain View and parts of downtown Palo Alto,
California.  The current coverage footprint includes the local campuses of
Intel and Google, two founding Innovation Network supporters who have also
commenced their own internal 4G application development programs.  Cisco’s
campus will receive coverage in the coming months as the network expands. 
Clearwire will update the coverage area maps over time.  Download detailed
maps of coverage areas with suggested drive routes and test locations:

- Palo Alto

- Santa Clara

- Mountain
View, Los Altos, Sunnyvale

Clearwire plans an aggressive expansion program for CLEAR in the U.S., with a
combined coverage area that would service up to 120M people by the end of 2010.

Logistics for the Innovation Network

After reviewing terms and conditions, qualified software application developers
that live or work in Silicon Valley can register for free mobile WiMAX service,
as long as they buy or own a Clearwire approved terminal (see list below). 
Bright House, Comcast, Sprint, and Time Warner Cable will join Cisco, Intel and
Google in support of Clearwire’s mobile WiMAX application development
initiative.  All those companies except Cisco are strategic investors in
Clearwire.  The first four plan to resell the CLEAR service, so they have a
lot to gain.  All of the participants will aid in promoting the program and
have deployed their own respective development resources into the network (e.g. 
RAN equipment, IP NGN systems, devices, software, etc). 

Infrastructure providers include: Motorola, Samsung, Huawei (these three vendors
supply RAN equipment), and Cisco (Core IP NGN Network). 

Editor’s Note:  Allen could not confirm that all of these
infrastructure vendors would be involved in the Innovation Network instance.

Components, modules and applications were said to be available from: Intel,
Google, Cisco, and Beceem (chip set).  Netbooks with embedded mobile WiMAX
interfaces are available from Lenovo, Dell, Toshiba, Samsung, and Fujitsu for
use in the program.  The new Samsung Mondi MID handheld is also supported
on the Innovation Network. 

Editors Note:  only the mobile devices listed are eligible for use
on the CLEAR Innovation network.  Home modems and CLEAR VOIP products and
service are not available on the Innovation Network.

To access the network, developers can purchase a Clearwire WiMAX USB modem for
$49.99.  Developer-owned, CLEAR "network-ready" mobile WiMAX devices, such
as the Samsung Mondi and WiMAX-embedded Intel-based PC’s, are also eligible for
the program.  To qualify, developers must register for Clearwire’s
developer program and describe the mobile WiMAX applications/ development ideas
they wish to pursue.  Interested developers can sign-up at

http://developer.clear.com/innovation.

Developers can expect to realize peak download speeds of up to 10 Mbps on this
network, with average download speeds of 3 to 6 Mbps.  In contrast, some of
today’s 3G wireless networks typically deliver download speeds of between 600
kbps – 1.4 Mbps, according to Clearwire.  Unlike Wi-Fi, mobile WiMAX
provides service areas measured in miles, rather than feet.  In addition,
the IEEE 802.16e technology used supports full mobility and enables seamless
handovers from tower to tower, similar to cellular networks. 

Goals and Applications for the Innovation Network

Flanagan stated the goal of the Innovation Network was "to stimulate software
development for Internet applications, broadband media content, Internet and
integration services." Allen identified several target applications: streaming
media, LBS’s, on-line gaming, voice and communications, social media, networking
collaboration, optimization and performance tuning.

Clearwire will support developers by providing: CLEAR Platform API and network
documentation, Location and Connection APIs along with associated guidelines. 
Educational content will be available for mobility, optimization/ tuning,
network setup, operations and coverage maps. 

In a short video, Clearwire CTO John Saw articulated the applications the
company expected to be "enabled" by the Innovation Network.  These
included: mobile video, location awareness, voice, social networking and gaming.

Click here to view
Clearwire’s CTO Dr.  John Saw discussing the Innovation Network

Q&A

In answer to a question, Mr.  Flanagan echoed a 4G World comment from
Clearwire CEO Bill Morrow that both WiMAX Pico cells and femtocells would play
an important role in "4G networks" and be critical to their success.  In a
follow up email exchange, Allen stated: "In my opinion, it will take some time
before they become critical.  Just as it took a lot of years for them to
become deployed on previous generation cellular networks."

This author asked if Clearwire might have trouble motivating garage shops and
small software developers to participate in the Innovation network program,
considering the absence of any smart phones or hand held devices (except the
brand new Samsung Mondi).  Allen said that Clearwire was very aware of that
issue and together with its investors would be able to recruit a critical mass
of developers for the network.

Clearwire will participate as a platinum sponsor of the Sprint Open Developer
Conference scheduled for October 26-28 in Santa Clara, CA (this author is
registered to attend).  Developers can register to attend the conference
at: 

http://developer.sprint.com/devcon2009.

Flanagan suggested that developers interested in working on applications for
mobile WiMAX might want to attend the conference to learn about the Innovation
Network directly from Clearwire executives. 

Editor’s Note:  This author expects important new announcements from
Sprint regarding handsets and perhaps other devices that will operate on CLEAR.

What the Big Boys Have to Say

"We see tremendous potential for true, mobile broadband to act as the catalyst
for new and compelling Internet applications that leverage our 4G bandwidth,
free of the confines associated with wired connections," said John Saw, Chief
Technology Officer of Clearwire.  "Our goal is to harness the concentration
of developer talent in Silicon Valley and accelerate the pace at which these
disruptive services are being developed."

"Our long history of innovation with WiMAX, including our development efforts in
Portland, OR, allowed Intel to be among the first in the U.S.  to have
access to this exciting, next-generation 4G environment," said Sriram
Viswanathan, vice president of Intel Capital and general manager of WiMAX
Program Office at Intel.  "Along with the WiMAX ecosystem, we look forward
to expanding these mobile broadband resources and efforts in an area home to the
one of most technology-savvy groups of individuals in the world."

"Mobile broadband is fundamentally changing the way people use the Internet, and
4G networks like Clearwire’s have incredible potential," said Larry Alder,
mobile product manager at Google.  "We are excited to see how developers
will take advantage of this unique asset as Internet users increasingly expect
connectivity regardless of their device or location."

"Cisco’s Internet Protocol Next-Generation Network infrastructure is playing a
key role in the Silicon Valley Innovation Network," said David Goeckeler,
general manager of Services and Mobility business unit, Cisco.  "An IP
network is the right platform to deliver on the promise of mobility and put 4G
services in the hands of some of the most talented and creative developers in
the world."
"At Bright House, we’re always searching for new and innovative capabilities to
bring to our customers," said Leo Cloutier senior vice president, strategy &
business development, Bright House Networks.  "We’re strongly supportive of
this initiative and its ability to leverage the creative talent of developers in
the region for the creation of new mobile broadband applications."

"Combining the speeds of broadband with the mobility of wireless communications
gives the development community in Silicon Valley a unique opportunity to create
differentiated applications," said Tom Nagel, Comcast’s senior vice president
and general manager for Wireless.  "Comcast is pleased to support this
development program to spur further innovation with 4G capabilities.  The
initiative is consistent with our own commitment and efforts to encourage
developers to leverage open standards such as Tru2way."

"Sprint continues to demonstrate its leadership in the growth and deployment of
4G networks and technology and in the developer community," said Len Barlik,
vice president of wireless and wireline services for Sprint.  "Sprint is
the first carrier to offer an open community that gives developers the platforms
and network to create innovative applications and the ability to introduce new
services to the market.  The availability of 4G in the Silicon Valley is a
great opportunity for developers to immediately begin the development of the
next generation of wireless applications."

"Time Warner Cable looks to provide services that are simple, easy to use and
give customers more control and convenience," said Michael Roudi, group vice
president of wireless services for Time Warner Cable.  "We are proud to
support the efforts of developers in the Silicon Valley to experiment and create
new applications which will take advantage of the mobile broadband network and
enhance our customer’s wireless experience."

Conclusions

The Silicon Valley community is very pleased to have Clearwire’s Innovation
Network up and running.  In particular, IEEE ComSoc SCV members have
expressed a strong interest in mobile broadband applications for netbooks and
notebooks as well as for hand held devices.  We hope to report results of
these application developments in forthcoming articles.  IEEE ComSoc SCV is
also looking forward to hosting a panel session in early 2010 where Innovation
Network participants will describe the tangible take-aways and lessons learned
from this very important endeavor.

_________

Footnotes:

http://www.wimax.com/commentary/blog/blog-2009/april-2009/Commercial-WiMAX-Network-Planned-for-Silicon-Valley-0410

Web References

http://newsroom.clearwire.com/phoenix.zhtml?c=214419&p=irol-newsArticle&ID=1331811&highlight=

http://www.wimax360.com/profiles/blogs/silicon-valley-becoming-the-4g

The auction to operate 3G mobile-phone services and fixed wireless broadband
(WiMAX) services will earn India about 250 billion rupees (US$5.1B), Raja said.  
The starting price for each slot of 3G spectrum is 35 billion Indian Rupees
(US$716M), lower than the (US$827M) price previously signaled by the government
but higher than the original (US$413M) price suggested.   "Since the
number of slots are only four, the auction price will be more," Raja said.  

Three available blocks of spectrum in the 2.3 and 2.5GHz band will be auctioned
separately for fixed broadband wireless access services.   The so
called "WiMAX auction" will be held after the 3G auctions are completed and are
expected to follow a similar process.   The government ministers also
set a base price of 17.5 billion rupees for permits to operate fixed broadband
wireless (WiMAX) services.

As noted above, the 3G and WiMAX spectrum auctions had been scheduled to take
place in January this year, but were subject to repeated delays that have
allowed government controlled operators BSNL and MTNL to deploy 3G services
ahead of privately owned rival carriers.   Those operators had already
received licenses for one of the five blocks of spectrum to be allocated for
wireless broadband (more in the next section of this article).

It was hoped that early auctions of 3G and WiMAX licenses would result in a
growing market for mobile Internet in India, which has much potential and
promise.   India is now the second largest wireless market in the
world, but almost all of it comes from cellular voice and SMS (rather than from
wireless Internet access).   India’s cellular operators added 11.59
million subscribers in May, taking the country’s total to 415.25 million,
according to the latest figures from Telecom Regulatory Authority of India
(TRAI).  

Spectrum Auction Logistics & Details

The government intends to allocate 4 blocks of unpaired 20MHz spectrum in each
of the 22 service areas (see map below), with 2 blocks in the 2.3GHz band and 2
blocks in the 2.5GHz band.   One block in the 2.5GHz band will be
reserved for MTNL (in Delhi and Mumbai) and BSNL (in all other service areas)
and the remaining 3 blocks will be put up for auction.

The India Telecommunications Ministry had restricted the sale of radio bandwidth
to five blocks (or slots), of which one has already been allotted to state-run
Bharat Sanchar Nigam Ltd.  (BSNL) and Mahanagar Telephone Nigam Ltd.  
(MTNL), ahead of the proposed auctions.   So that leaves four blocks
left.   While BSNL operates in 20 of the country’s 22 telecom service
areas, MTNL provides service in the remaining two.   The two companies
will be paying the government the highest bid amount resulting from the auction
process.   The government also announced that blocks in the 700 MHz
and 3.3-3.6 GHz bands will be auctioned as they become available to offer Fixed
WiMAX and rural wireless broadband segments to consumers.  

Source: Government of India, Ministry of Communications & Information
Technology

The terms and conditions for the Auction of 3G and BWA Spectrum in India is

specified in this 130 page memorandum.   Note that in this
document, BWA spectrum auctions for 2.3 MHz and 2.5 MHz spectrum is likely to be
used for WiMAX services.

WiMAX in India  – Claims & Counter-Claims

If you perceive the following two news reports -published on the same day
-contradictory, then you don’t understand India.   It is a country
that its full of contradictions and, in this case, different interpretations of
the same government announcements.

1.  WiMAX in 150 Indian Cities within 90 days

EE Times – India reports that approximately 150 cities in India would have
wireless broadband service through WiMAX in just 90 days, once the 20MHz
spectrum is allotted to four operators in each geographical circle. 
Observers at the WiMAX India 2009 conference believe that a WiMAX network
operator could serve many subscribers with good quality service.  However,
much would depend upon early implementation of the proposed auction of the
spectrum reserved for BWA. 

"India is ready for broadband experience" said C.S. Rao, chairman of WiMAX Forum
India.  "Wireless is the key to broadband," he said.  Not all
participants were so sanguine.  Commenting on the poor broadband
penetration despite huge WiMAX potential, Bharti Airtel group Chief Technology
Officer Jagbir Singh said that "price points are not good while scalability is
an issue."  He and several other experts at the conference called for the
government to expedite the spectrum auction in order to accelerate WiMAX-based
broadband penetration in India.

2.   WiMAX bidders may not get spectrum in a hurry
The successful WiMAX bidders are unlikely to get spectrum immediately after
the auction as the government may offer only a ‘conditional license’.  
"The WiMax spectrum is not immediately available.   We may offer
conditional license to the successful bidders, and that the spectrum would be
given after six months or whenever it is be available," department of telecom
(DoT) secretary Siddhartha Behura told reporters on the sidelines of an event
organized by the internet service providers association of India (Ispai).  
On August 27th, the

India government announced that the auction for 3G and WiMax spectrum is
likely to happen in the next three months.   Behura said that the
auction for 3G and WiMax would be conducted simultaneously with a lag of 15 days
(We take this to mean that the WiMAX auction would start 15 days after the 3G
auction ends).

Comments & Concerns

We have written on WiMAX in India extensively in the last three years- holding
our breath, waiting for the auctions to take place.   Only after the
spectrum is acquired can the wireless operators begin to build out their
networks.  When will that be?  No date has been set for the auction to
start.  So our first concern is that precious time has already been lost on
the path to mobile Internet and fixed BWA.   Will India’s WiMAX
potential be squandered?

A second concern is that the number of projected India WiMAX subscribers is too
high.   The WiMAX Forum forecasts that India will have 19 million
WiMAX subscribers by 2012, or 20% of the world’s WiMAX user base.  The
Economic Times of India, citing a study by US market research firm Strategy
Analytics,

reports that India will become the largest WiMAX market in the Asia-Pacific by
2013.   That study predicts India’s WiMAX subscriber base to reach
14 million by Year 2013 and grow annually at nearly 130%.   The study
also projects initial investment in WiMAX ventures will top $500M in India.

Gartner Group is much more conservative, forecasting that India will have 6.9
million mobile and fixed WiMAX connections by the end of 2011.   On
March 21, 2008, we heard directly from Andimuthu Raja at meeting that took place
at the India Community Center in Milpitas, CA.   At that time, Raja
stated that only he expected only 10M WiMAX subscribers by 2011.   We
thought that was quite disappointing for a country that has over 1 billion
residents.  But how can India be a leading WiMAX country with such a small
number of subscribers?

The third and perhaps most important concern is that true mobile WiMAX
will not happen in India, despite Intel’s efforts to promote the technology and
furnish low cost netbooks.   At the end of 2008, India’s mobile
service providers boasted nearly 347 million connections, a year-on-year
increase of nearly 50 percent.   The government expects the subscriber
base for combined wireless and wireline connections to touch 600 million by the
end of 2012, from 404 million at the end of April, this year.   But
the mobile WiMAX component may likely to be much smaller – with WiMAX
used for fixed wireless broadband Internet access by business and some
residential customers.   Most companies in India plan to use 3G
services for mobile Internet and WiMAX for fixed broadband access.

The auction to operate 3G mobile-phone services and fixed wireless broadband
(WiMAX) services will earn India about 250 billion rupees (US$5.1B), Raja said.  
The starting price for each slot of 3G spectrum is 35 billion Indian Rupees
(US$716M), lower than the (US$827M) price previously signaled by the government
but higher than the original (US$413M) price suggested.   "Since the
number of slots are only four, the auction price will be more," Raja said.  

Three available blocks of spectrum in the 2.3 and 2.5GHz band will be auctioned
separately for fixed broadband wireless access services.   The so
called "WiMAX auction" will be held after the 3G auctions are completed and are
expected to follow a similar process.   The government ministers also
set a base price of 17.5 billion rupees for permits to operate fixed broadband
wireless (WiMAX) services.

As noted above, the 3G and WiMAX spectrum auctions had been scheduled to take
place in January this year, but were subject to repeated delays that have
allowed government controlled operators BSNL and MTNL to deploy 3G services
ahead of privately owned rival carriers.   Those operators had already
received licenses for one of the five blocks of spectrum to be allocated for
wireless broadband (more in the next section of this article).

It was hoped that early auctions of 3G and WiMAX licenses would result in a
growing market for mobile Internet in India, which has much potential and
promise.   India is now the second largest wireless market in the
world, but almost all of it comes from cellular voice and SMS (rather than from
wireless Internet access).   India’s cellular operators added 11.59
million subscribers in May, taking the country’s total to 415.25 million,
according to the latest figures from Telecom Regulatory Authority of India
(TRAI).  

Spectrum Auction Logistics & Details

The government intends to allocate 4 blocks of unpaired 20MHz spectrum in each
of the 22 service areas (see map below), with 2 blocks in the 2.3GHz band and 2
blocks in the 2.5GHz band.   One block in the 2.5GHz band will be
reserved for MTNL (in Delhi and Mumbai) and BSNL (in all other service areas)
and the remaining 3 blocks will be put up for auction.

The India Telecommunications Ministry had restricted the sale of radio bandwidth
to five blocks (or slots), of which one has already been allotted to state-run
Bharat Sanchar Nigam Ltd.  (BSNL) and Mahanagar Telephone Nigam Ltd.  
(MTNL), ahead of the proposed auctions.   So that leaves four blocks
left.   While BSNL operates in 20 of the country’s 22 telecom service
areas, MTNL provides service in the remaining two.   The two companies
will be paying the government the highest bid amount resulting from the auction
process.   The government also announced that blocks in the 700 MHz
and 3.3-3.6 GHz bands will be auctioned as they become available to offer Fixed
WiMAX and rural wireless broadband segments to consumers.  

Source: Government of India, Ministry of Communications & Information
Technology

The terms and conditions for the Auction of 3G and BWA Spectrum in India is

specified in this 130 page memorandum.   Note that in this
document, BWA spectrum auctions for 2.3 MHz and 2.5 MHz spectrum is likely to be
used for WiMAX services.

WiMAX in India  – Claims & Counter-Claims

If you perceive the following two news reports -published on the same day
-contradictory, then you don’t understand India.   It is a country
that its full of contradictions and, in this case, different interpretations of
the same government announcements.

1.  WiMAX in 150 Indian Cities within 90 days

EE Times – India reports that approximately 150 cities in India would have
wireless broadband service through WiMAX in just 90 days, once the 20MHz
spectrum is allotted to four operators in each geographical circle. 
Observers at the WiMAX India 2009 conference believe that a WiMAX network
operator could serve many subscribers with good quality service.  However,
much would depend upon early implementation of the proposed auction of the
spectrum reserved for BWA. 

"India is ready for broadband experience" said C.S. Rao, chairman of WiMAX Forum
India.  "Wireless is the key to broadband," he said.  Not all
participants were so sanguine.  Commenting on the poor broadband
penetration despite huge WiMAX potential, Bharti Airtel group Chief Technology
Officer Jagbir Singh said that "price points are not good while scalability is
an issue."  He and several other experts at the conference called for the
government to expedite the spectrum auction in order to accelerate WiMAX-based
broadband penetration in India.

2.   WiMAX bidders may not get spectrum in a hurry
The successful WiMAX bidders are unlikely to get spectrum immediately after
the auction as the government may offer only a ‘conditional license’.  
"The WiMax spectrum is not immediately available.   We may offer
conditional license to the successful bidders, and that the spectrum would be
given after six months or whenever it is be available," department of telecom
(DoT) secretary Siddhartha Behura told reporters on the sidelines of an event
organized by the internet service providers association of India (Ispai).  
On August 27th, the

India government announced that the auction for 3G and WiMax spectrum is
likely to happen in the next three months.   Behura said that the
auction for 3G and WiMax would be conducted simultaneously with a lag of 15 days
(We take this to mean that the WiMAX auction would start 15 days after the 3G
auction ends).

Comments & Concerns

We have written on WiMAX in India extensively in the last three years- holding
our breath, waiting for the auctions to take place.   Only after the
spectrum is acquired can the wireless operators begin to build out their
networks.  When will that be?  No date has been set for the auction to
start.  So our first concern is that precious time has already been lost on
the path to mobile Internet and fixed BWA.   Will India’s WiMAX
potential be squandered?

A second concern is that the number of projected India WiMAX subscribers is too
high.   The WiMAX Forum forecasts that India will have 19 million
WiMAX subscribers by 2012, or 20% of the world’s WiMAX user base.  The
Economic Times of India, citing a study by US market research firm Strategy
Analytics,

reports that India will become the largest WiMAX market in the Asia-Pacific by
2013.   That study predicts India’s WiMAX subscriber base to reach
14 million by Year 2013 and grow annually at nearly 130%.   The study
also projects initial investment in WiMAX ventures will top $500M in India.

Gartner Group is much more conservative, forecasting that India will have 6.9
million mobile and fixed WiMAX connections by the end of 2011.   On
March 21, 2008, we heard directly from Andimuthu Raja at meeting that took place
at the India Community Center in Milpitas, CA.   At that time, Raja
stated that only he expected only 10M WiMAX subscribers by 2011.   We
thought that was quite disappointing for a country that has over 1 billion
residents.  But how can India be a leading WiMAX country with such a small
number of subscribers?

The third and perhaps most important concern is that true mobile WiMAX
will not happen in India, despite Intel’s efforts to promote the technology and
furnish low cost netbooks.   At the end of 2008, India’s mobile
service providers boasted nearly 347 million connections, a year-on-year
increase of nearly 50 percent.   The government expects the subscriber
base for combined wireless and wireline connections to touch 600 million by the
end of 2012, from 404 million at the end of April, this year.   But
the mobile WiMAX component may likely to be much smaller – with WiMAX
used for fixed wireless broadband Internet access by business and some
residential customers.   Most companies in India plan to use 3G
services for mobile Internet and WiMAX for fixed broadband access.