Ari Zoldan, CEO of Quantum Networks, recently spoke with Ben Kolada, an analyst with the New Paradigm Resources Group, as part of NPRG’s Conversations with Communications Innovators podcast series. Ari discussed the international reach of WiMAX technology, the potential for WiMAX in the United States, and the implications of the Sprint/Clearwire rollout, including the nature of the relationship of WiMAX technology to Long Term Evolution.

• Listen to the podcast here : Ari Zoldan Discusses WiMAX with NPRG

New Paradigm Resources Group is a strategic consulting and research firm for communications innovators. NPRG’s podcast series, available in full at the NPRG homepage, contains discussions with the leaders who are shaping the telecommunications industry.

Is the global economic outlook getting you down? Does the business section of your local newspaper depress you? Fortunately, there’s hope, in the form of a quick Google search: there is plenty of news on WiMAX technology floating around the Internet this week, and most of it positive.

Our first item, from the Washington Business Journal, announces the final merger of Clearwire Corp. with Sprint’s WiMAX business, Xohm. If you’ve had your doubts about the ability of Sprint to pull off a successful WiMAX network, this news might boost your confidence. Clearwire comes to the table with $3.2 billion in investments from a group of heavy-hitters in media and telecommunications, including Google, Intel, Comcast, Bright House Networks, and Time Warner Cable. Though Sprint and Clearwire have both seen their stock prices decline further after the announcement of their merger, the final approval of the merger by Clearwire shareholders is a resounding vote of confidence in the long-term promise of WiMAX technology, bolstered by the significant investment of a consortium of industry giants. Google in particular has demonstrated a pattern of quietly rolling out products which offer the greatest convenience and value for the consumer, even when their development requires Google to expend more time, effort, and money behind the scenes. Though many analysts and commentators suspect that other 4G technologies will emerge as easier and cheaper options for companies to pursue, the support of Google and other industry leaders for the Clearwire/Sprint venture sends a message of belief in WiMAX as a strong business venture, worth pursuing with billions of dollars in investments even in the midst of a turbulent financial climate.

More recently, Airspan has offered up another positive news item, announcing that it has successfully demonstrated a seamless handover from one frequency band to another on a mobile WiMAX network in the UK. Airspan’s demonstration of the ability of WiMAX devices to switch between frequency bands with no interruption in service will undoubtedly make WiMAX even more attractive – and affordable – for network operators, who will have the potential to build single networks of two or more frequency bands in order to expand coverage. Enhanced roaming capabilities may also make WiMAX mobile broadband more enticing for end users, which can only help carriers to market WiMAX technology as unique and ground-breaking, and to draw a clearer line between the promise of WiMAX and the lingering specter of failed efforts at providing long-range, high-speed wireless service.

Now that Sprint’s long-awaited Xohm service has launched in Baltimore to mostly positive reviews, researchers, bloggers, and journalists are beginning to place their bets on the upcoming battle between WiMAX and long term evolution (LTE), its toughest challenger. Researchers at In-Stat have struck the first blow for WiMAX, concluding in a new report that WiMAX is likely to “outpace” LTE over the next few years, though both technologies are still years away from full implementation. In-Stat argues that because LTE will not be ready for at least another year or two, the timing of network roll-outs favors WiMAX technology. But CNET’s Marguerite Reardon is skeptical, as she draws a comparison between Sprint’s Xohm roll-out and the recent failed efforts by EarthLink to develop municipal Wi-Fi networks. She argues that Sprint’s business model may be doomed to fail because it pits WiMAX against existing 3G data services and cheaper, more consistent broadband options such as Verizon DSL. In the absence of financial incentives and a greater variety of WiMAX-ready devices, Reardon predicts that Xohm will face a tough battle for consumers – not necessarily against LTE, but against HSPA products offered by competitors.

However, while Sprint’s WiMAX network in Baltimore may not be as consistent as existing broadband services — for now, at least — it still offers stronger, faster, and more consistent connections than EarthLink’s Wi-Fi project, which depended on countless access points, each with a limited reach. WiMAX offers the freedom of municipal Wi-Fi, but with far less hassle — so the real goal for Sprint is to convince consumers that its service will make their lives easier, liberate them from coffee shops, and save them the trouble of dealing with routers and modems. Their inability to pull this off is by no means a foregone conclusion. Municipal Wi-Fi, after all, is still an attractive concept in theory, if not in practice. And while it’s true that WiMAX-ready mobile devices and laptops are currently few in number, we can doubtlessly expect to see more of these devices entering the market if the launch of Xohm proves to be successful in the long run.

Reardon doesn’t mention LTE directly, but she does inject a bit of unpleasant reality into the WiMAX vs. LTE debate by pointing out the gloomy state of the economy, and in doing so, she raises an important question: what if delays in WiMAX roll-outs give LTE technology time to catch up? Phil Skeffington, an associate with UK-based consultancy Mott MacDonald Schema, doesn’t see a problem. In fact, if Skeffington is right, the battle between WiMAX and LTE may even result in a draw. Skeffington believes that WiMAX and LTE are “complementary technologies,” with LTE poised to become the preferred technology for mobile handsets, and WiMAX set to corner the market of “nomadic” laptop users because of its superior bandwidth capabilities. Because demand from laptop users is higher right now, WiMAX is still likely to hold on to its early lead. Its ability to emerge from the fight unscathed depends on Sprint’s ability to attract consumers, to create demand for devices, and to convince manufacturers and investors to meet that demand. Fortunately for backers of WiMAX, there is plenty of cause for optimism.

September 29, 2008: That Monday was the fateful day of Sprint-Nextel’s long-awaited WiMAX rollout. Xohm launched commercially in Baltimore to great anticipation in four forms: a $35/month modem plan, a $45/month mobile service for use with a PC ExpressCard, a $65/month “pick 2″ plan, and a $10/day tryout, but it’s really the second option that brings something new to the table. Internet anywhere in a city? No wires? And not even that, but faster than your usual cabled setup too! So needless to say, many have already taken Xohm out for a (literal) test drive, so much so that the ExpressCards are selling out in stores.

The bottom line? PC Magazine and Information Week both seem to agree–the new service is undoubtedly fast. PC Magazine’s Sascha Segan: “With a strong signal, I saw download speeds averaging 3.6Mbps, with my fastest test at a blazing 7.1Mbps. That’s faster than my home cable connection!” But “strong signal” are the operative words; the new network still has a lot of gaps to fill. J. Nicholas Hoover of Information Week confesses to having run across a few “dead zones” in areas that were stated as covered, and signal fluctuations were common, as Segan elaborates: “At a shopping mall…I had a significantly stronger signal on the south side of the mall than on the north side.“  But, he continues, “[T]hat’s to be expected from a new wireless network in its first week…Networks start out patchy and then fill in.”

So Sprint’s WiMAX network is far from perfect. But for now, Baltimore residents should be glad to have 35 mph streaming video. Next up is Chicago and D.C.; the former is already getting hyped up with an exhibit in the Museum of Science of Industry featuring a three-story WiMAX-enabled Smart Home. And if you aren’t in Baltimore but are in the seven announced near-future sites (Chicago, D.C., Dallas-Fort Worth, Boston, Providence, Philadelphia), you may still be able to take advantage of fixed WiMAX speeds!

Google has announced an aggressive push to bring broadband internet service in to the emerging markets with a strong concentration into Africa. It’s attempting to launch 16 satellites connecting half of the world. The search engine giant has teamed up with John Malone, the cable giant, and HSBC, the international bank behemoth, to set up what they are calling O3B Networks. Their mission in what seems to be a clear objective, is to bring an alternative to fiber, given the fact that the financial viability of running fiber throughout the continent is too expensive.

The announcement for ordering up 16 low-earth orbit satellites from the French aerospace company, Thales Alenia, is expected to be the first stage of a 750 million dollar infusion into the project. In addition, there has been a small contribution by Allen & Company, a media advisory firm, of 20 million dollars. According to Larry Elder, product manager in Google’s alternative access group, “the project could bring the cost of bandwidth in such markets down by 95%”. He further states, “This really fits into Google’s mission to extend internet use around the developing world.”

This is an opportune time for the Wimax community to step up and take some very serious initiative to introduce its technology as a clear bridge for long range distribution to their end-users. The only foreseeable alternative to Wimax distributing the satellites’ broadband signal, would be Long Term Evolution (LTE). However, the standards for this technology have not even been drafted. This is why WiMAX is perfectly positioned to be the alternative true access for optimal broadband in third world countries.

Potentially, this is a tremendous boost for WiMAX technology and all of its mobile applications. Several networks in Africa are already utilizing WiMAX technology and are being hailed a huge success. Assuming Google goes the way of WiMAX, its objective to bring internet to every single person on the planet is within clear reach.

AT&T’s Apple iPhone and Sprint’s Instinct touch phone is not the only rivalry brewing between these two foremost cellular networks. AT&T has been bullying Sprint for a long time now, trying to prevent the Sprint and Clearwire union from merging both of their assets in order to create a nationwide broadband wireless network.

The only difference is that this time, Sprint is fighting back. Sprint recently filed a response, declaring that “The New Clearwire transaction presents an unparalleled opportunity to accelerate broadband deployment in the United States,” Sprint declared.

Furthermore Sprint has addressed AT&T’s false claims against the WiMax wireless network. They stated that only three parties objected to the Sprint and Clearwire transaction or anticipated conditions. According to Sprint, “Their claims lack merit and provide no basis for denying, delaying, or imposing conditions on the approval of the New Clearwire license transfers,” Sprint stated.

This 59-page document is full of proofs against the erroneous claims being brought by AT&T, in essence Sprint has put on their gloves and is fighting back to preserve their right to launch their powerful broadband wireless network.

Hundreds of religious and educational institutions have rallied behind Sprint and Clearwire, now Intel , Google, Comcast and Time Warner are not alone. They all realize the importance of a WiMax wireless network and the great opportunities that could arise as a result. According so Scott Sloat, a Sprint representative, “The transaction poses no competitive concerns, and the public interest strongly weighs in favor of quick Commission approval.”

It is interesting to note that as of now AT&T is one of the largest telecommunications company in the world. Hopefully, the commission will reject their unadorned complaints and see them for what they are; an attempt to distort the public’s view of a powerful broadband wireless network for their own ruthless self-interests.

WiMax news has been dominated by a London research firm’s recent announcement that mobile WiMax might be dead on arrival.

“Recent events have been unfavourable toward Mobile WiMAX,” says Frost & Sullivan’s Programme Manager Luke Thomas, referring to Sprint’s delayed deployment of its commercial WiMax network. The firm then focuses on the two aspects of mobile WiMax:

“In terms of indoor wireless broadband, Wi-Fi fits well in this space and with the emergence of 802.11n, which includes MIMO, throughputs would be far better than what MobileWiMAX can deliver…With respect to outdoor mobile broadband environments, users would expect Mobile WiMAX to seamlessly hand off to cellular networks in the absence of WiMAX reception. In reality this is not possible as mobile WiMAX is not backward compatible with existing cellular technologies.” (Centre Daily)

By their diagnosis, the future of mobile WiMax seems bleak indeed. However, the image they portray may be oversimplified to WiMax’s disfavor. For instance, most next-generation broadband technologies will radically change modes of operation, making them incompatible with prior hardware. And before you ask, yes, in this club is the much-championed LTE. So in any discussion of new mobile technology, upgrading existing equipment is almost a given. It’s certainly much more of an industry-wide hurdle than, as Frost & Sullivan make it seem, an obstacle of WiMax exclusively. And already the industry is moving towards a solution, with talks of multimode.

As for the talk of the 802.11n standard of WiFi: last I heard, parts of the standard were still under patent in Australia, and requests for Letters of Assurance were ignored. That’s not a good portent for the standard’s likelihood of approval, as fast as it may be. I’d much rather look to WiMax, which is set to launch in its first large U.S. metropolitan area, Baltimore, in September.

The Canadian equipment manufacturer Nortel is passing on its WiMax operations to Alvarion in order to focus on LTE development, as reported on telecoms.com. Nortel claims the deal allows for both WiMax and LTE, which is projected to get to market faster than anticipated, to be developed on a timely schedule.

But there are other dynamics at play. The most immediate stimulus for the switch may be due to the Clearwire-Sprint deal still fresh in everyone’s minds; such a coalition in support of WiMax technologies has got AT&T and Verizon scrambling to polish the rival technology they’re backing, LTE. Once shipped, LTE hardware will be able to deliver floods of streaming media to mobile users, in as-of-yet unheard of quantities. Is it any surprise that Nortel is eying this development anxiously? In Nortel CEO Mike Zafirovski’s own words, it’ll put “lots of pressure on the bandwidth of the networks” (TheStar.com). Thus they have prioritized, allowing Alvarion to handle WiMax while they lavish the LTE front with the attention it needs.

Smart move ? It seems so. Nortel’s stock consequently jumped 13% following the announcement. But don’t interpret that as a clear indication of market confidence in LTE–the battle lines are still being drawn on the 4G frontier.

Michael Nelson, Stanford Group SVP, and Ari Zoldan, Quantum Networks Founder and CEO, discuss the WiMAX deal on Fox Business :

In spite of the failed partnership with Clearwire and their current financial strain, Sprint expects to launch Xohm as planned. We could be experiencing a wireless broadband network from Sprint in several major cities, such as Chicago and Washington DC, as early as spring of this year.

According to the LA Times, Sprint’s Chief Executive Dan Hesse is convinced that WiMAX is the way to go even though Sprint’s bigger competitors Verizon and AT&T have disregarded WIMAX in favor of another 4G network known as LTE (Long Term Evolution). LTE is a project in the 3GPP (Third Generation Partnership Project) and is an easier progression from our current wireless networks. While some are concerned that the industry’s two largest carriers are not backing WiMAX, Google, Comcast, and Time Warner are rumored to be jumping on the WiMAX bandwagon. Not to mention, WiMAX was the big buzz word at the CTIA Wireless show in Las Vegas. On Tuesday, Nokia presented its most updated version of N180 Internet Tablet, a WiMAX device projected to run on Sprint’s Xohm network. Motorola displayed a WiMAX enabled car with music, video, and data mapping streaming wirelessly from temporary WiMAX towers placed in the city. All of the hype and optimism surrounding WiMAX is great news for Sprint but may be bad news for Sirius and XM satellite radio.

Sirius and XM have just received the long awaited approval from the Department of Justice for the Sirius XM merger that was first announced back in February of 2007. The merger would double their customer base making it much easier to cover fixed costs. Sirius and XM are also hoping that the merger will help ease the highly competitive environment so acquisition and marketing spending can be lowered. However, with the development of WiMAX, Sirius and XM will face competition from Internet radio which could be streamed wirelessly into cars or mobile phones. Sirius and XM have more than just the pending approval from the FCC to worry about.