The next-generation (4G) WiMAX network architecture still enjoys a commendable growth potential and generates enthusiasm among U.S. telecom service providers. Recently, 300 WiMAX applications have been submitted to the U.S. government for a total value of $1.6 billion targeting the federal government’s last mile broadband stimulus fund. The National Telecommunications and Information Administration (NTIA) and the U.S. Department of Agriculture’s RUS fund have set aside a total of $4 billion in grants with an additional $3.2 billion available for loans.

Through WiMAX, broadband service providers will offer an alternative to cable and digital subscriber lines technology. The technology provides a low-cost, open network system with an all IP mobile Internet solution that enables efficient and scalable networks for voice, data, and video transmission. WiMAX has enormous potential to close the digital gap between competitive urban markets and underserved rural markets.

In the U.S., Clearwire Corp. (CLWR) has started deploying its nationwide WiMAX network. The largest two cable MSOs in the country ? Comcast Corp. (CMCSA) and Time Warner Cable Inc. (TWC)  have started offering WiMAX services using Clearwire’s network. Open Range Communications has decided to implement WiMAX network spanning 17 states and 546 rural communities that may reach a population of 6 million. Towerstream Corp. (TWER) is also on the verge of starting metro WiMAX services.

Major beneficiaries of this large scale WiMAX network deployment will be the WiMAX network infrastructure solutions providers. Motorola Inc. (MOT), Alvarion Ltd. (ALVR), Samsung Electronics and Huawei Technologies are the prominent WiMAX gear makers. Outside the U.S., the Government of India has decided to allocate spectrum for the WiMAX network together with 3G technologies. Chunghwa Telecom (CHT) of Taiwan, P.T. Telekomunikasi (TLK) of Indonesia, Aria SPA of Italy, and Mobitel Nigeria have decided to implement WiMAX broadband solutions. Millicom International Cellular (MICC), a leading telecom service provider in Central America and Africa, is also exploring an option to implement the WiMAX network.

Zacks Investment Research

1. (CMCSA) Comcast Initiated By Analysts as NeutralWe initiate coverage for Comcast Corp. (CMCSA) with a Neutral recommendation. Comcast, the largest cable...
2. (CELL) Brightpoint Wins WiMAX ContractBrightpoint Inc. (CELL) received a shot on its arm as the company received a major...
3. (TWC) Time Warner Cable Launches WiMAXTime Warner Cable Inc (TWC) will launch the 4G WiMAX mobile broadband services in three...
4. (S) Sprint Nextel Expands 4G WiMax FootprintSprint Nextel (S) has further expanded its fourth-generation (4G) wireless broadband network coverage to ten...
5. (ALU) Move Away from WiMAX Technology ContinuesThe much-hyped next-generation (4G) technology of WiMAX is quickly losing ground to the alternative technology...
6. (ALU) WiMAX Losing Ground to Long-Term Evolution (LTE)The much hyped next-generation (4G) technology of WiMAX is quickly losing ground to the alternative...

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