Light Reading

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.
Flash Poll
From The Founder
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Cable Eyeing SDN for Headend, Home Uses

5|26|15   |   05:57   |   (1) comment


CableLabs is looking at virtualizing CMTS and CCAP devices in the headend, as well as in-home devices, says CableLabs' Karthik Sundaresan.
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Procera has gathered facts, stats and customer experience feedback from a survey of 540 users from across the globe.
Hot Topics
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Bidding War for TWC Looks Likelier
Alan Breznick, Cable/Video Practice Leader, 5/22/2015
Charter Seals Deals for TWC, Bright House
Mari Silbey, Senior Editor, Cable/Video, 5/26/2015
Eurobites: Alcatel-Lucent Trials 400G in Czech Republic
Paul Rainford, Assistant Editor, Europe, 5/26/2015
Comcast Targets 6 New Gigabit Markets
Mari Silbey, Senior Editor, Cable/Video, 5/21/2015
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
On May 29th 10 AM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM for NFV at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
Cats with Phones
Too Fluffy to Talk Click Here
Elmer found that his bountiful fur got in the way of meaningful conversation.