Over the last 4 decades, technology has been largely a battle of competing ideas. VHS vs.
BetaMax, 8-track vs. cassette, Apple vs. Microsoft, DVD vs.
Laserdisc,
HD-DVD vs.
Blu-Ray, and
iPod vs. everyone else. The best technology hasn't always won, and once the technology war is over, those who supported the losing side are left far behind the curve.
In the world of cellular phones, the fight for cellular dominance has been just as fierce:
GSM vs.
CDMA,
HSPA vs. Ev-Do, iPhone vs. Droid. It looked like a fight was brewing for the next generation of Wireless Communications (commonly called 4G, even though it's not truly 4G) between
WiMAX (based largely from data/
internet comms) and
LTE (based largely from voice and
SMS comms). Supporting
WiMAX has been largely start-up companies looking to expand laptop capabilities far beyond
WiFi hotspots (companies like Clear,
Yota,
Alvarion,
Airspan,
Redline, but also Intel,
Samsung, and Google). Supporting
LTE has been the giant cellular telecoms (AT&T, Verizon,
Vodaphone,
Telecom Italia,
NTT DoCoMo), which dictated that
LTE handsets be backwards compatible with existing communication standards. A classic battle of
Lilliputians vs. giants was developing, with the winner dominating the new all-
IP cellular network being built for the 21st century.
It looks like the war has ended before
LTE even made an appearance in the U.S.
For months,
WiMAX, which has enjoyed a 2 year
headstart over
LTE, has been hit with serious setbacks. The global economic crisis has
devastated WiMAX companies.
Alvarion has recently had to lay off workers. Other
WiMAX providers have ceased to exist. The
WiMAX telcos are starting to concede that
LTE maybe the future. Clear has openly stated that
LTE is the future. In the last week,
Yota, the largest provider of
WiMAX outside the U.S. announced they were no longer deploying additional
WiMAX services, instead announcing
LTE deployments starting next year. Even Intel, the principal
WiMAX player, has admitted
WiMAX's future is in doubt.
So why has
WiMAX apparently lost? In short, the little providers oversold the hype and
under produced in markets. By now,
WiMAX was supposed to be nationwide in the U.S., covering every major city. So far,
WiMAX has reached only a handful of cities, and Clear has even pulled out of Baltimore, the first city to deploy
WiMAX.
WiMAX was advertised to download at 70
Mbps a ranges up to 40 miles. Actually, you'll be lucky to get 4-8
Mbps at 2 mile ranges.
Another reason
WiMAX lost: the iPhone. The iPhone was a game-changing technology that helped people realize the dream of a mobile
internet device in the palm of your hand. Why should people be forced to carry around bulky laptops, when you can get data and
internet services on a small machine you can put in a pocket. Now, when you talk about 4G devices, it's always iPhone with ______.
WiMAX's disappointing returns have forced its providers with a tough choice: stay with the standard or jump to
LTE, where support is strong, even if the technology is not quite as good from an
IP perspective as
WiMAX. The bigger names in
WiMAX have largely opted to go with the latter, realizing that if they want to stay in the game, it's better to join the big
telcos. The smaller ones might still survive, but the
LTE telcos could always buy them out if they got too big.
With Intel the likely big loser in all of this, who is the big winner? China. Yeah, that's right, China. For years, China has been trying to get the world to adopt a standard the Chinese could be heavily involved in. They failed with trying to change
WiFi, and TD-
SCDMA came around too late in the game. In
LTE, China has backed a time division variant called TD-
LTE, which use less spectrum than the European variant. Although the speeds will be less than European variants, the spectral efficiency makes the TD-
LTE variant more attractive, particularly to current
WiMAX operators looking to switch to
LTE. Currently, China is demonstrating the
LTE variant at the World's Expo in Shanghai, and China Mobile will launch its own
LTE network soon (if it hasn't already). It will mark just the third nation to launch
LTE (after Sweden and Norway). Chinese providers
ZTE and
Huawei have been involved with
WiMAX infrastructure, and both are playing critical roles in
LTE development. In fact, it is the estimation of this author that as
LTE starts coming more on line,
Huawei will be not just the #1 Provider of
LTE equipment even out performing Sony
Ericcson, Motorola,
Nokia Siemens, and
Alcatel-
Lucent, but they will ultimately supplant Microsoft, Apple, and Google as the world's most recognized dominant technology company. It's not so bold of a prediction, considering
Huawei is currently #2 to Sony
Ericcson in
LTE manufacturing.
Another winner is
Qualcomm.
Qualcomm initially was looking to build their own technology called
UMB (ultra mobile broadband), but the lack of interest forced
Qualcomm to abandon its efforts.
Qualcomm then joined forces with
LTE, which was an interesting pairing. The builders of
LTE did not like
Qualcomm's involvement in 3G technology, so they were initially trying to avoid
Qualcomm with 4G technology. However,
Qualcomm had a bigger rivalry with Intel, so it actually made sense for
Qualcomm and
LTE to join
forces. In the end,
Qualcomm's chipset has become the largest chip provider of
LTE gear (even more than
Samsung) and
Qualcomm's cooperation with
Huawei has paid huge benefits for the San Diego company.
Both
WiMAX and
LTE had been working on a true 4G
communications standard.
WiMAX 2.0 was supposed to be
WiMAX's 4G standard and
LTE's 4G standard is known as
LTE-Advanced. Both standards were based largely on
LTE similarities.
Yota had completed a
pre WiMAX 2.0 trial in Russia with
Samsung at the end of last year. However, with
Yota's move to
LTE, the future of
WiMAX 2.0 is in grave doubt.
LTE-Advanced trials are scheduled to begin soon.
In the end, although
WiMAX had a head start, the major
telco backing give
LTE a huge advantage and ultimately the winning edge. In the U.S.,
LTE is being trialed by Cox Cable, but it will be first rolled out by
MetroPCS, then Verizon, and AT&T. T-Mobile will stay with 3G standard
HSPA+ for now, but will ultimately go to
LTE in 2013. And Sprint? Since
Clear's infrastructure is what Sprint uses for 4G, when Clear decides to go to TD-
LTE (probably by 2012), Sprint will join
LTE then.
I was looking forward to seeing which technology would emerge victorious. Sadly, due to events in recent weeks, it appears I will not get that chance.