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Nokia/Sprint/WiMAX: Analysis
Nokia is invited to the Sprint Nextel WiMAX table: emphasis on open source, multiple subscriber unit vendors? Systems integration piece is important as well.
Last week's Wall Street Journal reported that Nokia had been invited by Sprint Nextel to supply WiMAX products for their upcoming US roll-out of WiMAX services. What wasn't clear is exactly what Nokia would be selling Sprint Nextel and if Nokia's merger partner Siemens would be a player as well. A few, not necessarily connected thoughts here:
1. By bringing Motorola, Samsung and Nokia to the table, Sprint Nextel is ensuring it has a wide variety of vendors for this open source technology. This "Big 3" of cellular handsets will also ensure a steady supply of innovative subscriber devices. Assuming that the major difference between a CDMA and WiMAX handset is merely the air interface, cellular handset vendor veterans should have little challenge in providing a a wide variety of WiMAX subscriber devices to Sprint Nextel. This is wise management for any service provider.
2. If the Nokia deal will also involve Siemens base stations, this provides Sprint Nextel with a wider variety of base station vendors. Diversity is good, but having too many dissimilar vendors can be problematic in the end. Three vendors is a good number.
3. Nokia brings a capable systems integration piece to the table. If Sprint Nextel intends to reach as many markets as possible as soon as possible, then an experienced systems integration team that can ramp up quickly will be needed.
In summary, bringing Nokia, one of the larger handset vendors, to the table, Sprint Nextel adds greater legitimacy to WiMAX as a technology. I don't think its too early to point to this deal as yet another major validation of WiMAX as the de facto 4G technology for North American service providers.
Frank Ohrtman
WMX Systems
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