Cisco dumps its WiMAX base station and modem business

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Clearwire may be optimistic about the growth of WiMAX in 2010 and beyond but network hardware manufacturers are a bit more bearish on the 4G wireless technology. Last month, Alcatel Lucent announced it will be scaling back on its WiMAX equipment and focusing on LTE; while popular WiMAX chipset maker Beceem introduced a new WiMAX/LTE multi-mode chipset to be used in devices that will support both wireless technologies. The latest company to join this burgeoning WiMAX exodus is Cisco, which announced plans to discontinue the production of new WiMAX base stations and modems. Rather than provide the radios for the wireless 4G technology, Cisco is adopting a radio agnostic strategy and will focus on the IP network and IP equipment that runs behind the base stations and modems. This discontinuation is more symbolic than it is detrimental to Clearwire as most of the Cisco equipment purchased by Clearwire is IP and not radio equipment. Nonetheless, it is yet another indication that, though WiMAX currently has the lead, network hardware manufacturers see a bright future for LTE and are not willing to place all their eggs in the WiMAX basket. That’s certainly understandable.

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11 Comments
  • Azeron

    This is so unfair. EV-DV all over again?

    • Jimmie Holloway

      Wimax is HD-DVD, Lte is Blu-ray, you get the picture!

      • TechnoBeaver

        I think you’re right! I sure hope WiMAXX hangs in there to keep LTE pricing lower.

  • Llooyd Dobler

    So, WiMax isn’t going to destroy the wireless operators like some people expect?

  • HunterA3

    It’s as if folks are ready to write off Wimax before it even has a chance to prove itself worthy of competing with LTE. Sad really.

    • Homer

      Exactly, everyone talks like they have personally used LTE and it’s 1000x better…. they’ll be sadly disappointed when Verizon f**ks it up just like they do with everything they do.

  • burnet

    The reason in the manufactures losing confidence is probably due in part to the top leading carriers in the US choosing LTE as their weapon of choice while the smaller less promising ones are wimax. Seems like Sprint just cant get a break here.

  • VDubb

    This shouldn’t be a surprise. Cisco is doesn’t want to sell its equipment as cheap as Huawei, thus they’re discontinuing manufacturing equipment. Don’t be surprised if Huawei doesn’t edge out other vendors for LTE equipment contracts as well.

  • http://www.fullchipdesign.com/ fcd@fullchipdesign.com

    WiMax is good as back haul

  • http://Www.MyHiBeam.com Brule

    As I read this article I was concerned for the while “Sky is falling” mentality for WiMax based on the direction a couple of companies have chosen to go. I work for a WiMax carrier that chose to go with Cisco products as a test in the market I cover. All I can say is we’ve been underwhelmed with the results. I think Cisco bought into this space on the hopes it would be easy for them. They didn’t create anything, they just re-branded a previous product and then owned the deployment. Unfortunately they didn’t have the expertiese to do that to the degree that other companies can do. When my technical team has to teach Cisco how to trouble-shoot their own products there’s a problem. Needless to say, their decision to pull out has more to do with them sticking with what are good at and nothing to do with a lack of confidence in WiMax. As far as I know my market is the only real world test of their product so there likely isn’t many other people that can speak from experience here. The WiMax Vs. LTE battle hasn’t even started yet since WiMax is the only game in town. So far it has proven to be extremely effective in deploying a highly reliable and robust wireless Internet and phone solution for areas that are underserved by true high speed broadband options. WiMax will continue to march on and with companies like mine as well as Clear blazing the trail. Oh and the company I work for is HiBeam Internet and Voice and I’m going to grab my soapbox and move on now…

  • http://www.digitalwarehouse.com TechGirl

    VDubb – I agree Cisco won’t sell its equipment as cheap as Huawei, but I am not sure about edging out other vendors for LTE contracts. I think there is still some skepticism regarding Huawei out there.

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