- Why Cisco will rake in WiMax winnings
After the U.S. gubmint formally opened the application process for the initial tranche of its broadband stimulus funds, our pal Dan Jones surmised (and we agree) that WiMax will be the "technology of choice" for many of the funding-hopeful applicants. Pretty simple to reason why: Compared to other "4G" wireless technologies, WiMax is actually a solid standard, and there is gear available, today, from multiple providers. And compared to fiber or DSL plays, WiMax offers service providers a potentially cheaper capex outlay, especially in rural areas where fewer towers might be needed. So, more bang for the taxpayer's buck.
While we also agree that WiMax-specific providers like our friends at Alvarion Technologies Ltd. (Nasdaq: ALVR) should do well in deals linked to the stimulus largesse, it's also a pretty safe bet that WiMax newcomer Cisco Systems Inc. (Nasdaq: CSCO) will rake in its fair share of WiMax-bid spoils. If WiMax does indeed lead the stimulus tech charge, even if Cisco doesn't win the radio side of the deal, each WiMax deployment will still need IP-based expenditures in the network's core -- a playing field Cisco knows quite well. And yes, small service provider, if you need help financing those expensive-router purchases Cisco will be only happy to help. After all, it's not like the BTOP funds will be paid with worthless IOUs. In the U.S. Treasury, Cisco can trust.
- Looking for WiMax, finding Ma Bell
Here's a stupid Google trick that may or may not say something about the competition WiMax is bringing to the broadband market. Just type in "WiMax" (or "WiMax Portland") to the regular Google Web search and see if you don't get what we get a lot recently: A top-level sponsored link (aka an advertisement) with the headline "Wimax" and below it this copy:
att.com/enterprise Local, National or Global Business? AT&T Can Provide Network Solutions.
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– Paul Kapustka is the founder and editor of Sidecut Reports, a WiMax analysis site and research service. He can be reached at [email protected]. Special to Unstrung.