Intel, McCaw to jumpstart WiMAX: joint venture by chipmaker and telecom pioneer aims to boost broadband deployment

America's Network, Nov 15, 2004 by Nguyet Le Thomas

WiMAX is getting a boost from a joint venture between Intel Corp. and Clearwire, a wireless broadband company founded by cellular industry pioneer Craig McCaw. The project is an effort to create a wireless alternative to telephone and cable Internet service.

Under terms of the deal, announced at the CTIA Wireless IT and Entertainment 2004 trade show in San Francisco, Intel plans to make a significant (though unspecified) investment in Clearwire. In return, Clearwire will install WiMAX equipment powered by Intel chips. Some industry observers believe the alliance will boost support in the United States for WiMAX.

"WiMAX technology has spawned a global community that continues to gain momentum," says Sean Maloney, an Intel vice president and general manager. "Carriers, equipment makers and solution providers around the world are laying the foundation for building this new global network."

Intel plans to invest $150 million to jumpstart WiMAX technology by creating a new family of chips that will support WiMAX and accelerate adoption of high-speed networks worldwide, Maloney added.

McCaw and Maloney say engineers from their companies have been working together since last summer to develop, test and deploy WiMAX base stations and customer premise equipment. The gear could be available to solution providers by the end of 2005.

By creating a single global standard for WiMAX, Intel and Clearwire executives believe they could pose a competitive challenge to existing cable and DSL technologies. McCaw said at a news conference that Clearwire could deploy the service in as many as 20 U.S. markets next year. Clearwire already offers wireless Internet service in Jacksonville, Fla., at a cost of about $25 monthly.

WIRELESS DIRECTORY

A number of other issues with major implications for wireless were evident at the CTIA show. For example, proponents of Wireless 411 directory assistance service laid out a plan that would see the directory up and running by early 2005. Some of the biggest wireless phone service companies, including Alltel, AT&T Wireless, Cingular, Nextel, Sprint PCS and T-Mobile are moving forward with plans to build a national database of mobile numbers, says Greg Keene, chief privacy officer of Qsent, the aggregator that will be responsible for all cellular database security.

The directory is "opt-in," which means subscribers who don't want a listing won't be included. Those who want the free listing would have to notify their carriers. Carriers have not determined pricing for calls, although Keene believes it will range between $1 to $1.50 per call.

W411 has encountered numerous obstacles from legislators and consumers concerned about cellular number privacy. Keene says privacy concerns should not be a central issue for several reasons: Cellular numbers will only be available to individuals dialing 411 from a wireline or a wireless phone. The numbers will not appear in a printed directory, cannot be accessed on the Internet, and will not be sold to third-party firms, such as telemarketers.

"Contrary to what people might believe, there are official laws that prohibit telemarketers from calling wireless numbers," Keene says.

SMMS PUSH

A number of new products and technologies were showcased at the show. Sprint, for example, introduced two new handsets and announced plans to be the first major telecommunications provider to offer complete, end-to-end management of wireless devices and services for business customers.

Sprint's new Managed Mobility Services (SMMS) is designed to help IT administrators make wireless phones more secure and corporate calling plans more sensible, according to Rob Kermode, general manager of SMMS. The service is focused on five areas that Kermode says are key concerns for enterprises: security, configuration, procurement, asset tracking and bill management.

"We're bringing together services and functionality for businesses to best manage their wireless infrastructure," Kermode says. Among the services in SMMS is remote disablement, with data encryption and passwords managed by the carrier.

The company currently is testing SMMS with a dozen enterprise customers, including insurance giant Mutual of Omaha. Sprint plans to introduce the service officially early next year.

During his conference keynote address, Steve Largent, CTIA president and CEO, announced that wireless carriers have agreed to provide consumers with MMS (Multi-Media Messaging Services) interoperability by the end of this year. The Inter-Carrier MMS Working Group established a set of guidelines that will allow wireless carriers to phase in photo and video messaging services over time.