Sprint’s WiMax Bet

The Economist writes:

On August 8th Sprint Nextel, the third-largest wireless operator in America, announced ambitious plans to build a new network, based on an infant technology that melds broadband-internet access with wireless communications at a low price.

The company aims to use the technology, called WiMax, to create a market for linking devices to the internet that today are unconnectedeverything from digital cameras and music-players to sensors and household appliances. This will let people do things that are now technically difficult or prohibitively expensive, such as mobile video-conferencing or managing a building’s lighting online. The new service will compete not only against mobile operators, but with telephone companies and cable firms that sell broadband. The choice of WiMax threatens the firms that dominate today’s third-generation wireless market. It is an important victory for its chief backer, Intel.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.