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M-Taiwan WiMax and Sprint WiMax - Two Futures and Two Economies
By F. Lopez,
In 1992, I recall working as an energy expert
with Silicon Valley semiconductor companies in the area of regional data
collection networks to help characterize electric distribution systems feeding
their critical fabrication plants. We used modems and telephone lines as our
means of data communication. If only WiMax were available!
I also recall following the development of the Taiwan Semiconductor
Manufacturing Company (TSMC)
http://www.tsmc.com/english/a_about/a_about_index.htm and technical pundits
scoffing that such a concept wouldn't work. (I remember receiving a phone call
that several TSMC engineers were flying in from Taiwan to see my data collection
network. I was flattered that someone would take the time to visit me - I simply
wanted to solve my customer's problems. I was more impressed by the how the
Taiwan engineers discussed such a network in detail and their desire to make
TSMC work.)
Anyone who follows the semiconductor industry knows the success of TSMC. The
success of TSMC reminds me of impending success of M-Taiwan/WiMax initiative.
Readers of this Forum www.wimax.com know that
M-Taiwan is discussed as a global model; especially for developing countries.
M-Taiwan demonstrates the advantages of government-private partnerships and how
WiMax helps those countries promoting the need for an educated, mobile, well
informed society. And countries with similar efforts as M-Taiwan will all make
mighty contributors and competitors in the globalised economy.
http://www.wimaxforum.org/technology/downloads/M_Taiwan_Program.pdf
In the meantime, here in the U.S., I read last's week's big news about Sprint
feeling pressure from large institutional shareholders to firm up their weak
performance in core operations and returns to its shareholders; and complaints
about whether or not WiMax is the investment of choice. Therefore, Sprint may be
looking for a joint venture with Clearwire or a capital sharing partnership with
cable operators via the Pivot joint venture.
http://online.wsj.com/article_email/SB118177984718034661-lMyQjAxMDE3ODExNDcxNzQ5Wj.html
However, for us trained readers, the "devil is always in the detail". In the
case of Sprint; the highly respected activist firm, Relational Investors, LLC,
has a position of about $500 million or 1% of Sprint-Nextel stock and is a
mighty voice in corporate governance and shareholder democracy. You can read
about their work here:
http://webreprints.djreprints.com/1656671510589.html
The real issue is the short term quarterly pressure on US companies and their
institutional shareholders. Thus; activist shareholder are playing a bigger role
in the short term decision making process of U.S. companies. Recent articles in
the Financial Times and Wall Street Journal note such activity. In Sprint's case
WiMax may not make short term economic sense when Sprint needs to re-focus on
its core voice networks and integration issues with Nextel - at least in the
eyes of the activist shareholder.
Thank goodness there is a movement in the United States and throughout the
global corporate worlds to restrain short term philosophy and scrap quarterly
earnings pressure.
Headed by the Aspen Institute and backed by the Business Roundtable, the goal is
to create a business environment where US companies can focus on long term
stable strategies instead of quarter by quarter short term returns.
http://www.ft.com/cms/s/44e0f218-1cfd-11dc-9b58-000b5df10621.html
The fear is that long term profits and long term competitiveness are being
hampered. I am sure Sprint's CEO will agree wholeheartedly in his vision for
WiMax.
All we need to do is look at M-Taiwan and see a successful long term model; just
like TSMC.
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