WiMAX investments in Asia Pacific

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China’s State Administration of Radio, Film and Television (SARFT), is readying the launch of WiMAX technology in China. The entry of China into the WiMAX sphere could catapult the market with new investment worth some RMB100 million (US$16.4 billion). SARFT is looking to introduce WiMAX in 30 cities. While SARFT has denied the existence of such a plan, the denial could be an attempt to stall for time while the plan is finalised.

It is believed that SARFT could use WiMAX to build a next-generation CMMB (China Mobile Multimedia Broadcasting) network, which would allow greater interactivity of CMMB services. In 2007, SARFT used 820.16d WiMAX to trial a wireless broadband interactive digital TV networks in Hangzhou City of eastern China’s Jiangsu Provice as part of a project to deliver converged TV, telecommunications and Internet services.

The news should come as welcome relief to Taiwan’s high-tech sector, which, under the Taiwanese government’s M-Taiwan initiative, has been positioning itself as a major manufacturing source for WiMAX. However, delayed roll outs by Taiwan’s WiMAX licensees, the overwhelming popularity of LTE as the de facto 4G technology, and the global credit crisis, brought this strategy into question. In May 2009, the Control Yuan, the highest government watchdog, recommended a review of the M-Taiwan strategy, citing the delays and inefficiencies in network rollout and utilisation. The Control Yuan, a group with the power of impeachment, censure and audit of the government, said that the lacklustre deployment and utilisation of 6,000 kilometres of fibre networks under the programme is slowing the development of broadband in the country.

In addition to the creation of the WiMAX ecosystem, the supporting national fibre network was also supposed to provide a competitive infrastructure to the country’s incumbent operator, Chunghwa Telecom. However, only about 4,000 kilometres of the project has been completed by February 2009, with only 1,800 kilometres leased out to competitive carriers. The addition of China to the global WiMAX market could help rectify the M-Taiwan strategy.

WiMAX technology will achieve the same uptake as Ethernet and Wi-Fi in coming years, according to chip giant Intel. The processor company has backed WiMAX with millions of dollars in development funding. The company still hopes to see it embedded in the majority of future devices, despite what appears to be the global shift to LTE. However, Intel is one of the few companies known to take big bets on technology and get behind it. The company has done it twice before, and is in the process of doing it a third time.

In mid 2009, Intel Capital, the global investment arm of the chipmaker, announced a further US$43 million investment into Japanese WiMAX operator UQ Communications. The company launched a commercial WiMAX trial called UQ WiMAX, in February in Tokyo, Yokohama and Kawasaki. Intel is already a shareholder of UQ Communications, along with KDDI, Kyocera and East Japan Railway. Willcom, a PHS operator, is the other WiMAX licensee in Japan.

UQ has committed to provide WiMAX coverage to 90% of the country by 2012. Intel and UQ have laid out a broad strategy to develop the WiMAX ecosystem in Japan, including the introduction of WiMAX enabled laptop computers with Intel’s Centrino 2 chips. Toshiba, Panasonic and Onkyo are all in the process of releasing WiMAX enabled laptops.

See also BuddeComm reports on:-

• China

• Japan

• Taiwan

News Source : WiMAX investments in Asia Pacific