14 DAY TRIAL // The first 4G networks have started to roll-out around the world, and the entire industry is currently looking at the two next-gen standards battling for supremacy, namely WiMAX and LTE. The first 4G network deployed in the world was based on WiMAX, but all previsions suggest that LTE would be the leading technology, and Intel's latest move seems to suggest the same.
To be more precise, the worldwide leading chip maker has closed its WiMAX Program Office recently, stating that it already managed to serve its purpose of helping the WiMAX industry take off. Even if this is the official explanation for the move, Digitimes Research senior analyst Simon Su states that Intel's decision to close down the office would impact the wireless industry on the long term.
Intel was the largest investor in WiMAX, and the company's move might determine carriers around the world into choosing the Long Term Evolution (LTE) standard over WiMAX, especially in the event that one company was not decided in regard to what technology to use. On the other hand, in markets where carriers rolled-out WiMAX networks and established customer bases, Intel's decision won't have much of an effect, at least not immediately.
However, the wide adoption of LTE might result in uncertainties when it comes to the development of next-generation WiMAX technologies, Su states. Taiwan companies might see Intel's actions as unfriendly, the analyst states, noting that the company did not notify some of its partners on its intentions to close down its WiMAX office.
Although Intel's action might create tensions between it and some of its partners, it won't change the overall trend in the wireless industry, Su comments. WiMAX is already seen as having disadvantages when compared to LTE, and, although the technology would enjoy traction on the market, its adopters might consider migrating to LTE at a certain point in the future. Even so, the two standards should co-exist for a long period of time.