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.

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.

Although the term “4G” has been tossed around a lot in relation to WiMAX, the reality is that the International Telecommunications Union has not yet to define what “4G” actually means. According to In-Stat, the main technologies that are associated with this position include WiMAX, Long Term Evolution (LTE) and Ultra Mobile Broadband (UMB). To better understand the nature of the players involved in so-called 4G technologies, Wikipedia provides some helpful definitions for LTE and UMB (for a definition of WiMAX, see our wimax glossary):

Ultra Mobile Broadband: An ultra fast technology that supports more than an order of magnitude increase in broadband data throughput rates to economically deliver IP-based voice, multimedia, broadband, information technology, entertainment, and consumer electronic services within most kinds of devices. A platform that supports several wireless services within a full mobility environment and thus differentiates itself from Wi-Fi, WiMAX, UWB, etc. Ultra high-speeds that are in the order of 100s of megabits per second; next-generation capabilities, beyond 3G.

Long Term Evolution: 3GPP LTE (Long Term Evolution) is the name given to a project within the Third Generation Partnership Project to improve the UMTS mobile phone standard to cope with future requirements. Goals include improving efficiency, lowering costs, improving services, making use of new spectrum opportunities, and better integration with other open standards. The LTE project is not a standard, but it will result in the new evolved release 8 of the UMTS standard, including mostly or wholly extensions and modifications of the UMTS system.