& cplSiteName &

Intel/Nokia Deal Gets Mixed Reactions

Light Reading
LR Mobile News Analysis
Light Reading
10/2/2006
50%
50%

Responses to last week's news that Nokia Corp. (NYSE: NOK) will partner with Intel Corp. (Nasdaq: INTC) on HSDPA modules have ranged from "this changes everything" to "Intel is in retreat."

Briefly, Nokia said on Thursday that it will supply an HSDPA (high-speed downlink packet access) module that Intel will include as part of its next-generation Centrino Duo platform. (See Nokia, Intel Bring 3G to Notebooks.) HSDPA, which is often referred to as "3.5G," runs over cellular networks and offers connection speeds around three times faster than 3G, while providing a much wider coverage area than WiFi.

"This collaboration is good news for notebook users," said Heikki Tenhunen, head of Nokia's connectivity module division, "as cellular technology offers superior connectivity and mobility for notebook and other portable device users."

Investors viewed the news as a body blow to embedded laptop card makers Sierra Wireless Inc. (Nasdaq: SWIR; Toronto: SW) and Novatel Wireless Inc. (Nasdaq: NVTL). Shares in Novatel dropped 19 percent on Thursday, and Sierra Wireless fell 8 percent.

"The Nokia/Intel partnership... will not only accelerate the market for cellular connectivity in notebooks," ABI Research senior analyst Philip Solis said in a statement. "Intel is also taking a first step towards the eventual inclusion of WiMax wireless broadband in portable computers. The eventual goal is to offer multiple connectivity options."

The ultimate effect may be less earth-shaking. In fact, the HSDPA hook-up could be viewed as something of a retreat for Intel, since it first announced a partnership with Nokia more than a year ago to collaborate on building technologies, and a market, for mobile WiMax, attempting to prove that the wireless broadband technology can thrive amid 3G and so-called "4G" cellular networks. Long touted by Nokia, HSDPA can be seen by comparison as an interim technology on the path to full WiMax capability.

At the Intel Developers' Forum in San Francisco, where the HSDPA module was announced, David "Dadi" Perlmutter, senior vice president and general manager of Intel's mobility group, acknowledged that "the jewel of the crown for wireless connectivity is WiMax." Intel hopes to deliver an integrated WiFi/WiMax chip by 2008.

For its part, Sierra Wireless is now focused on moving to "HSUPA," or high-speed uplink packet access, which will push uplink speeds to the 1-Mbit/s threshold, according to Larry Zibrik, Sierra Wireless's director of product management for embedded modules. Laptops with the Nokia/Intel module will not hit the market for another nine months or so, he notes. "By that time we'll have moved on to the next step in the technology."

That could be viewed as spin from an executive who has just watched his firm lose 8 percent of its market cap. Some gimlet-eyed analysts are skeptical too, however: "The earliest that Nokia could impact either [Sierra Wireless's or Novatel's] results would be in late 2007," writes CIBC World Markets analyst Ittai Kidron in a research note. "And even at that point, we believe Sierra and Novatel will be a step ahead with established relationships and solutions, putting Nokia in a catch-up mode to both companies."

What's more, Nokia's track record in making embedded or insertable devices has not been stellar: "Whether Nokia remains in the module business is debatable," writes Research Capital analyst Nick Agostino. "The company had entered the PC card business on two separate occasions and elected to exit the market."

A close listen to the remarks of Intel's Perlmutter reveals that the semiconductor giant's own goals for the module are more modest than they might appear at first glance. Questioned by the audience, Perlmutter said that the company predicts the rate of takeup for the module by OEM and ODM partners -- i.e., the fraction of manufacturers that will actually include the module in their finished products -- to reach only 10 percent by 2008. That's hardly a world-changer.

Also lost in the clamor over the Nokia/Intel partnership was the fact that, in February 2005, Nokia reached an agreement with another company to provide an HSDPA infrastructure solution. That partner was Sierra Wireless. (See Nokia, Sierra Team on HSDPA.)

— Richard Martin, Senior Editor, Unstrung

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
IPobserver
50%
50%
IPobserver,
User Rank: Light Beer
12/5/2012 | 3:39:04 AM
re: Intel/Nokia Deal Gets Mixed Reactions
Having used an HSDPA card in my laptop for a few months, I absolutely want it embedded my next computer.

ItGÇÖs just like WiFi GÇô having a PC card flapping out the side is nerdy and impractical. Much better to integrate.

The 3G Broadband service rocks, by the way.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
UPCOMING COURSE SCHEDULE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Re-usable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into re-usable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Verizon CFO: Eat Our (Fixed) 5G Dust!
Dan Jones, Mobile Editor, 9/22/2016
WiCipedia: The Women Helping Women Edition
Eryn Leavens, Special Features & Copy Editor, 9/23/2016
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
Open Source Getting on My Nerves
Carol Wilson, Editor-at-large, 9/26/2016
Telstra Sees Quadrupled Data Capacity by 2020
Carol Wilson, Editor-at-large, 9/28/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.