Nortel Gets Busy with WiMax

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Communications specialist Nortel (NYSE: NT - news) Networks is taking the nascent WiMax broadband technology to the next level with plans to deliver both fixed and mobile products based on the latest standards. To do so, the company is partnering with Intel (Nasdaq: INTC - news) and Airspan Networks to bring such products to market.

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WiMax is a wireless broadband technology that, compared to Wi-Fi, provides much faster connection speeds and a broader range than current wireless local area networks. When it begins rolling out around the country, it will provide businesses and consumers with continuous access to an array of high-bandwidth applications, including networked gaming, streamed multimedia content and videoconferencing.

Wireless Evolution

Fixed WiMAX will operate in the 3.5-GHz and 5.8-GHz bands of spectrum and deliver data rates exceeding 1 Mbps, which is comparable to lower-end cable and DSL broadband connections. Mobile WiMAX will initially operate in the 2.5-GHz band and provide even higher speeds.

Nortel's WiMAX products, which will be targeted at wireless and wireline carriers, cable providers, media companies and other ISPs, will complement third-generation cellular networks. The collaborations with Intel and Airspan are for mobile and fixed WiMax technologies, respectively.

"We have been active in wireless standards activities for a while, and we see WiMax as the next step," said Bruce Gustafson, director of WiMax marketing at Nortel. "Once the standards are ratified and spectrum is made available there will be an opportunity to provide a higher level of broadband service, especially in areas currently lacking high-speed access."

Leadership Role

Mobile WiMax systems are currently in the testing stage, with specification approval expected next year, followed by infrastructure and products such as laptops and handheld devices arriving in 2007 and 2008, said Gustafson. This will provide a much fatter pipe than current wireless broadband networks, with WiMax more closely the coverage provided by 3G cellular systems, Gustafson said.

For mobile WiMax to succeed, companies like Nortel and Intel must take leadership roles, said Yankee Group analyst Phil Marshall, noting that Nokia (NYSE: NOK - news), Alcatel (NYSE: ALA - news) and Siemens (NYSE: SI - news) are also among those developing products for the market. "It makes a lot of sense for Nortel to get involved, because this complements 3G systems and presents an opportunity sell their equipment to broadband providers," he said.

Nortel has contributed to the WiMax standard by helping to develop underlying technologies. The company is a member of the WiMax Forum, which promotes interoperability and certification of broadband wireless products.

http://news.yahoo.com/s/nf/20050919/tc_nf/38221;_ylt=AlII70pK7k_12HKtX3HFnVIjtBAF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
 

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