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3G-HSPA, Mobile Linux and Open Source are the Big Winners in Intel-Nokia Partnership

Intel referred to it as "this year's most significant collaboration in our respective industries." The Intel-Nokia strategic partnership will "align and shape the next generation of mobile computing."

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But it was very difficult to extract any tangible take always from the press conference announcing the partnership.  That's because no specific products were identified and no time frames were given to see the results of this highly acclaimed collaboration.

To a large extent, the press conference was a lot of hand waving and gesturing, without providing anything of substance that we might expect from such an important strategic relationship.  This is the third time in the last decade that Intel and Nokia have announced a partnership, with the previous two attempts not producing much if anything at all.  So the industry might have a right to be skeptical this time.  Nonetheless, it certainly sounded exciting. 

Anand Chandrasekher, Sr VP and GM of Intel's Ultra Mobility Group stated, "The leaders in both computing and communications are coming together to accelerate innovation while driving exciting new revenue opportunities.  Intel and Nokia are joining forces to announce a long term strategic relationship that will align and shape the next generation of mobile computing."

We are all aware that smart phones and intelligent hand held devices contain powerful processors and need mobile broadband capability to unleash "the tremendous power and potential to reshape our lives." With many different wireless communications options, most of us expect that "the future will bring even more ways to be connected- a future full of different possibilities." Yet that kind of talk dominated the prepared remarks of Intel and Nokia during the conference. 

Nokia told us more of what we already know:  "The Internet continues to evolve and touch every aspect of our daily lives.  Today, there are more Internet users (at 1.6B) than there are fixed phone lines (at 1.3B).  New applications will drive the need for more powerful compute engines and faster (mobile) broadband wireless access, Consumers looking for mobile devices to do more, e.g.  sensors, new apps, new materials, new device design and form factors (e.g.  netbooks MIDs).  We need to extend computing platforms, build on common open platforms and explore new architectures."

Anand told us that Intel would continue to "relentlessly focus on driving down the cost and power requirements (of new devices), while delivering continuing performance improvements." Should we have expected something different? We were also told more of the obvious, "Mobile devices require high bandwidth- mobile broadband communications and ubiquitous Internet connectivity at a reasonable cost.  Users should expect a rich experience, any time, anywhere.  New and exciting services across a range of devices, including new ones the companies will be defining together."

So what's really new? There are three aspects of the partnership, which is not limited to just hardware and R&D:

  1. Intel and Nokia will collaborate on several open source initiatives, most importantly Mobile Linux.  Nokia pointed out that "Hardware and software are decoupled these days.  Mobile Linux is an important part of the new converged mobile computing world." We would expect Intel and Nokia joint software development to be centered on two open source projects:
    • Moblin, originally an Intel project but now run by the Linux Foundation.
    • Maemo, a Nokia implementation created for an Internet tablet. 
  2. Intel is licensing 3G HSPA modem technology from Nokia, complementing its own WiFi and WiMAX silicon.  (Note that two years ago, Intel licensed an HSPA module from Nokia for use in notebooks.  This technology transfer is intended for Intel to offer HSPA silicon for mobile hand held devices).
  3. Intel and Nokia have entered into "a long term strategic partnership to develop a new class of mobile computing devices." Those future mobile computing devices will be based on Intel architecture defined chip sets and will "leverage each company's expertise."


And what about Mobile WiMAX? Don't expect anything from the partnership.  In response to a question on further WiMAX co-development, Anand replied, " This announcement has no effect on WiMAX one way or another.  We are still committed to it.  In this announcement, we are expanding our wireless portfolio to be able to implement Nonie's 3G HSPA technology."
This implies that Intel will no longer debunk HSPA technology in favor of Mobile WiMAX and suggest that network operators leapfrog 3G and move to Mobile WiMAX instead.

When a questioner pointed out that Nokia now had licensed 3G-HSPA to five different companies, Intel and Nokia responded as follows:

Intel: "3G HSPA technology has been licensed to build into future mobile offerings.  No comments on products or timing.  Nokia and Intel's vision is very similar- bringing communications and computing together.  This is not an exclusive agreement."

Nokia: "3G HSPA is what's on the market today (implying Mobile Wimax is NOT really on the market).  Nokia is licensing its 3G-HSPA-modem technology as widely as possible within the industry."

When asked if Intel had made any other inroads in the mobile phone business (which the company has tried to crack for years, but has not succeeded), Anand replied, "Intel is not public on any wins in the mobile phone arena except for LG." Then when asked what type of LG device would be forthcoming, Anand would not comment on the specific LG device that will have "Intel inside." This despite Intel having previously touted the LG MID (with Ericsson HSPA) as the highlight of this year's Barcelona MWC.

The stonewalling continued in response to other very reasonable questions about partnership deliverables:

Question from Bloomberg News: "There have been a lot of announcements about visions of the future.  Intel has tried to get into the mobile communication business for a number of years, yet they have not succeeded.  There's still a degree of skepticism until we know when the first Intel powered mobile device will be out there.  Can you tell us?"

Intel: "We will work together on strategic technology collaboration which spans three areas: Intel Architecture defined chip sets for future mobile computing devices, mobile and MIMO collaboration to deliver a very rich software environment for applications and user experience, Intel licensing of Nokia's 3G HSPA technology No products announcements at this time- not for today's discussion."

Question: "Do you expect the Atom family (Intel's lower power micro-processors) or x86 family to be embedded in future mobile computing devices?"

Intel: "No comment on brands or usage."
Nokia: "Premature to say how we will apply the technology at this stage."

How will the Mobile Computing Industry be effected as a result of this partnership?

  1. Could these mobile devices, with open source operating systems like mobile Linux, cause MSFT to lose its software domination of the computing world? Mobile Linux - one of the three focus areas for the Intel-Nokia partnership - is a direct competitor of MSFT's Windows Mobile.  As people increasingly use mobile computing devices to do things that would have required a PC a few years ago, MSFT is likely to lose ground.  Mobile computing devices, e.g.  smart phones, MIDs, all-in-one gadgets, etc are already replacing a lot of things we do today on PCs.  This trend will likely accelerate as mobile computing replaces desktop computing.
  2. Does this announcement negatively impact Mobile WiMAX, which already has been severely criticized for the lack of mobile devices with native mode air interfaces? After all the about WiMAX MIDs, we are still waiting for those devices to hit the market in a big way.  Will "the Internet in your pocket," be based on 3G-HSPA, rather than Mobile WiMAX?
    An anonymous Intel employee, provided his own read on the partnership:
    "This announcement does not change any of Intel's plans on WiMAX which are solid going forward.  Intel has not been a major player in Smart Phones/MIDs and we want to get into that space with the Intel Atom® Processor so this one part of this strategy.  Also most smart phones shipping today at least have 2G/2.5G and many also 3G.  So this licensing deal help fill a gap in our wireless technology portfolio. 
    It also allows us to provide WiMAX solutions to Nokia once more networks get deployed and they want their mobile devices to have WiMAX support as well.  So by no means does this negatively affect our WiMAX strategy.  It only opens new doors for us with a large customer like Nokia."
  3. When will the new mobile computing devices hit the market? They will need to come quickly, if they are to compete with all the new smart phones from Apple, RIM, and Palm.  We hear there will also be MIDs coming soon from Samsung and various Taiwanese companies.  Previous Intel - Nokia partnerships, e.g.  HSPA modules for notebooks, have not been successful so the industry is skeptical that this one will succeed.  We would expect to see Intel-Nokia mobile computing devices on the market in less than one year and perhaps as early as this December.


References:
Intel and Nokia Announce Strategic Relationship to Shape Next Era of Mobile Computing Innovation
http://www.intel.com/pressroom/archive/releases/20090623corp_b.htm?iid=pr1_releasepri_20090623rb

Intel makes stab in the dark with Nokia deal
http://www.tgdaily.com/content/view/42977/118/
 



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Wednesday, June 24, 2009 in Business  | Permalink |  Comments (26)

Previous partnership for HSPDA modems in notebook PCs?

Posted by John Sullivan at 2009-06-25 09:02 AM
Intel, Nokia partnership creates market for wireless laptops/ posted on 04 Oct 2006 at:

http://www.eetindia.co.in/ART_8800436573_1800005_NT_b752de12.HTM

Did that partnership change the market dynamics for "embedded cellular modems in portable computers" as promised? As far as I know, Intel did not even pursue this business and never sold any HSPDA modem cards to its notebook PC OEM customers.

Why should this partnership be any different? This time, there weren't even any products announced, road map or time frames specified. Wish I could make money from a strategic vision. Better yet, I'd like to become a "thought leader."

Perspective on this article + please comment on this site

Posted by Alan Weissberger at 2009-06-25 09:02 AM
I have been getting a lot of email comments on this article. Please post your comments here- on this site- and not directly to me via email. Thanks, Alan

Perspective and Purpose:

This article highlights the relevance and importance of open source software, especially at it applies to mobile computing devices. Squeezed between Google’s Android and Intel-Nokia’s versions of mobile Linux, where does that leave Windows Mobile?

As computing moves from desktop to mobile platforms, could this be the end of the Wintel duopoly that has monopolized personal computing for the last 20 years?

How will this 3rd Intel-Nokia partnership impact the world of mobile computing?
What impact will it have on 3G-HSPA and Mobile Wimax?
What do you think the deliverable devices might be from Nokia-Intel?

Please share your opinions on these issues by posting comments here on wimax.com. Thanks!

Nokia-Intel Agreement Benefitial to Both & Reflects Industry Evolution

Posted by Robert Syputa at 2009-06-25 09:02 AM
This agreement reflects a number of trends that have changed the challenges and opportunities of both companies:

Intel has worked aggressively to gain credibility as a wireless as well as a computer industry company via WiMAX.
Many tend to focus on WiMAX and LTE as competitors and separate standards which, of course they are, but from a 30,000 foot perspective these efforts are neighbors that are developing from the same ground and using the same basic building materials: both technology and market forces drive them ever closer together which naturally results in growing collaboration between what marketing rhetoric tends to obscure as disparate camps. This is not much different that the relationships forged in IT between Microsoft and Apple: they fought on one level for OS and PC dominance but collaborated on applications such as Microsoft Office. The overall impact of the competition was to stimulate the growth of the PC/networking industry.

Regardless of that, the devices and the applications and services that are needed for 3.5G data, WiMAX and LTE are increasingly the same. Operating systems are being driven to offer interoperable applications and content over IP. This plays into Intel's historical strengths and recent efforts in Linux.

We should not think of Intel's history in mobile devices as if this will determine their success from this point forward. 1st, Intel has 'street creds' of several years development of a viable alternative that fits the new mold of ICT: a more unified technology platform that serves multiple applications from flexible data networking useful for cloud computing to 'fully mobile' device applications. 2nd, Intel brings to the table a position in IT that is needed by companies such as Nokia. This includes the leading processor platform upon which Trillions of dollars of software now reside ('Trillions with a T'). Although software is a transient entity, it is a major driving force in the new 3G and NG mobile industry. 3rd, Intel yields core IC process, design, and manufacturing strengths that can be leveraged into the more powerful but low power personal broadband computing devices. Although this can sound like a cliche of marketing departments, the challenge to deliver the most popular mobile devices across a variety of scales and types rests on harnessing of leading edge IC processes and design capabilities.

Intel's core IC strengths are ahead of and of greater capacity than any other company. However, as Intel has recently commented, to deliver that to the new UMD, ultra mobile device, and battery dependent embedded applications including consumer electronics requires tighter collaboration with device manufacturers than is typical for notebook-netbook products. While Intel can closely control power consumption within the chip, they have less control on external interfaces, drives, and components. Work in such areas as universal power supplies, remote/wireless charging, and similar advances are best pursued in collaboration with the leading device suppliers.

Nokia has market leadership in mobile devices and is among leaders in infrastructure, networking, business services, and mobile services including mapping, and mobile payments. They are also a leader holder of HSPA IPR which lends itself to working closely with Intel. But Nokia has lost market share to Apple iPhone and faces increased challenges from multiple suppliers of Google Android based SmartPhones which includes Motorola as well as HCT. Pre has been introduced to rave reviews and is likely to gain respectable market share as well. What has led these gains is the availability of applications that have been developed on the respective open applications platforms. The ramp in open apps has quickly surpassed those available on Nokia devices. Nokia's own efforts to spur open apps development have thus far not met the challenge.

Thus, both Intel and Nokia can find advantages in working together: from a strategic perspective this would appear to compel a very close working relationship as each side can both contribute core capabilities needed by the other. But like all major collaboration efforts, making this work involves building the working relationship into an exchange of design and business capabilities that takes ongoing commitments with clear objectives and results.

My sense is that several factors favor these companies taking this beyond chuck a jive talk to develop a real working relationship that is potentially industry shifting. The fact is that the industries that both parties have championed in the past are now shifting with or without them. Intel's venture into WiMAX was made in recognition that this change would be coming: the shift both of IT and mobile communications to become part of ICT which requires open standards, open software, open applications delivery, and open collaboration between what might have been perceived as conflicting competitors.

The role of WiMAX for Intel does not basically change: WiMAX is part of the broad technological shift to MIMO-OFDMA based wireless, cloud ICT (computing) environments. And WiMAX IPR and product leadership translates into a seat at the table to participate in ICT both in its own right and as a bargaining chip with mobile industry participants.

There are many aspects to this arrangement and how it reflects industry development and the particular impact on WiMAX ecosystem and operators.

Robert Syputa

Intel benefits by selling Rosedale with 3G-HSPA silicon

Posted by Caridad Maria Lopez-Garcia at 2009-06-26 09:20 AM
With the promise and potential of Intel based WiMAX MIDs still waiting to be realized (if ever), we are first likely to see 3G-HSPA MID-Phones from LG and Nokia with "Intel inside." They will use the Moorestown version of the AToM processor, which has not yet been released for production. So we'll have to wait till next year (2010) for those new mobile all-in-one devices.

This partnership of technology visions will likely dilute Intel's strong push for Mobile WiMAX and serve to confuse the industry (as Nokia has trash talked the technology as the new Betamax). This comes right after Intel's cancellation of the Rosedale 2 processor without providing a decent explanation.

The upshot is that there won't be any hand held Mobile WiMAX devices with Intel silicon anytime soon. But there are many other WiMAX semiconductor companies who can take up the slack- e.g. Beceem, Sequans, GCT, Wavesat, etc. They will benefit from Intel's credability gap and the confusion caused by this (3rd) Intel-Nokia partnership.

Rosedale has been cancelled: It's Moorstown that Intel needs!

Posted by Alan Weissberger at 2009-06-29 09:38 AM
Rosedale was the code name for a WiMAX chip set which has beecancelled "do to lack of demand." Moorestown, presumably named after the city in New Jersey, is the next generation of the Atom processor. So I think you meant to say "Intel benefits by selling Moorestown with 3G-HSPA silicon"

Moorestown is critically important to Intel because of its greatly reduced power dissipation, which augers for longer battery life in mobile computing devices.


Alan J Weissberger

Skepticism? Previous Intel-Nokia partnerships have failed

Posted by Dick Martin at 2009-06-25 09:02 AM
1. Oct 2006:
Nokia supplies HSPDA module that Intel will include as part of its next-generation Centrino Duo platform (to be sold to notebook PC OEM customers).

Intel/Nokia Deal Gets Mixed Reactions
http://www.unstrung.com/document.asp?doc_id=105059

Outcome: Intel quietly walked away from this arrangement one year later not giving any reason.

2. Oct 2007: Nokia agrees to use Intel WiMAX chips in its tablet PCs:
Intel and Nokia make first step to forming mobile internet axis
http://www.theregister.co.uk/2007/10/11/intel_nokia_mobile_internet/

Earlier this year, Nokia discontinued its WiMAX MIDs without announcing plans for any new ones. A Nokia executive refered to WiMAX as the (ill fated) new Betamax.
---------------------------------------------------------------
In light of these failed efforts, why would anyone have confidence in this new partnership? Especially when no devices, components or time frames were announced?
-------------------------------------------------------------
What we might expect as actual products:

Let's say Nokia comes out with a 3G-HSPA smart phone with Intel's Atom procesor, rather than the ARM chip it gets from TI or Qualcomm? Is that something special?

And what if Intel sells a chip set to smart phone or MID OEMs that includes the next great version of the Atom processor bundled with 3G-HSPA modem chip technology from Nokia? Would that be such a big deal? So far it has only announced LG as a MID/ smart phone "win" for its Atom processor. We would hope there are many more coming, else Intel is in big trouble as the mobile computing world gains market share from notebook PCs.

B of A: Don't believe the hype around this deal

Posted by Jack Reed at 2009-06-25 09:02 AM
Bank of America failed to be impressed by Intel's Nokia hook-up this week, proclaiming "the hype does not match reality". BoA said it was disappointed that so "little clarity" had been provided on what the tech effort would actually involve and what Nokia devices it would target.

"A nebulous reference to new mobile platforms," is obviously not enough to put BoA investors on cloud nine. The fact that Nokia also openly endorsed its current lineup of ARM-based silicon partners as suppliers for the foreseeable future, even while on the Intel press call, also caused some concern.

The view on Wall Street seems to be that joint development of MIDs on Intel architecture with a dollop of open source software collaboration and a side of HSPA/3G modem IP licensing is a jolly good thing, but that the lack of a coherent timetable for potential ramping of silicon shipments and general haziness on Intel's ability to penetrate Nokia as a silicon supplier into smart phones, is not.
In other words, don't believe the hype.

http://www.theinquirer.net/inquirer/news/1405940/intel-delight-disappoint-wall-street






WSJ on Intel's travails in mobile phone industry

Posted by Alan Weissberger at 2009-06-25 09:02 AM
WSJ: Intel Makes Another Run at Phones With Nokia

"Intel spent billions of dollars acquiring communications companies under its previous leader, Craig Barrett. But Intel failed to gain traction with big handset makers like Nokia. Three years ago, Chief Executive Paul Otellini sold off the cellphone-chip business built by his predecessor, while laying plans to return with a different strategy.

The deal with Nokia exemplifies the kind of footholds Intel will need to claw its way into chips for pocket-sized products, a market that is growing more rapidly than traditional computers."

http://online.wsj.com/article/SB124576988211341997.html

And here's another skeptical article about the partnership:

Intel- Nokia Partnership Facing Market Challenges

http://www.informationweek.com/news/hardware/handheld/showArticle.jhtml?articleID=218100945






Open source software vs MSFT? Impact and outcome?

Posted by Caridad Maria Lopez-Garcia at 2009-06-25 09:02 AM
This article highlights the relevance and importance of open source software, especially at it applies to mobile computing devices. Squeezed between Google’s Android and Intel-Nokia’s versions of mobile Linux, where does that leave Windows Mobile?
As computing moves from desktop to mobile platforms, could this be the end of the Wintel duopoly that has monopolized personal computing for the last 20 years?

Other questions and unknown issues:

How will this 3rd Intel-Nokia partnership impact the world of mobile computing?
What impact will it have on 3G-HSPA and Mobile Wimax?
What might the deliverable devices be? We would guess Nokia smart phones or MIDs with 3G-HSPA

3G-HSPA devices with Intel Inside need Moorestown

Posted by Alan Weissberger at 2009-06-25 12:04 PM
Information Week: Intel, Nokia Partnership Facing Market Challenges

"Beyond the technology agreements, the companies will need to hone in on two or three form factors or risk market confusion, analysts suggest.

Beyond the technology agreements, little is known about the product direction Nokia and Intel are headed. Intel chips today are too power hungry for anything smaller than a netbook, which are mini-laptops with screen sizes ranging from 8 to 10 inches.

However, that's expected to change when Intel releases the next-generation Atom-based mobile platform, code-named Moorestown, which Intel claims consumes 10 times less power when devices are in idle mode. Intel is expected to start shipping the platform in 2010."

http://www.informationweek.com/news/hardware/handheld/showArticle.jhtml?articleID=218100945

Conclusion: We expect that smart phone/MID makers will wait for the Moorestown version of the Atom processor before announcing their 3G-HSPA devices with "Intel inside." We hope that some of those device makers might also consider embedding Mobile WiMAX silicon from Intel in their future products

Confirmation: 3G-HSPA devices with Intel Inside need Moorestown

Posted by Alan Weissberger at 2009-06-26 09:20 AM
Intel targets future MID market with power-conscious Moorestown

Intel has confirmed that its next-generation Moorestown processor will utilize platform power management (PPM) technology to facilitate a 50x reduction in idle power compared to current Atom-based devices. According to Intel CTO Justin Rattner, PPM represents a "fundamentally new approach" and introduces "changes to silicon" that allows hardware to play a major role in the reduction of power consumption.

Rattner explained that Moorestown-based hardware implements policies determined by the OS to manage power "in much less time" and at much "finer granularity." For example, the system will be capable of automatically reducing power and shutting down idle components - such as wireless radios or I/O subsystems - and instantly powering back up with "zero" impact to the user.

http://www.tgdaily.com/content/view/42929/135/

Comment and Analysis: This confirms to us that Intel based MIDs will be powered by Moorestown and not the current generation of the Atom processor. We expect 3G-HSPA MIDs from LG and Nokia to be the first one's on the market- sometime in the first half of 2010.

The Nokia-Intel deal has several moving parts

Posted by Robert Syputa at 2009-06-25 12:53 PM
Several have focused on whether new devices would soon come out from Nokia using Intel's Atom or other parts or what would happen in open software developments. Both companies have products and influence that can currently appeal to the other party but longer term goals were the primary emphasis of the announcements and conference call.

Nokia has invested heavily into open source software companies and efforts including acquisition of the Symbian Foundation and Maemo platform projects. But they have seen Apple's OSX based iPhone and Google Android rapidly outpace new applications made available on their respective or partners devices. This has greatly changed the device market to being driven by applications and content including music. Despite spending billions, Nokia's efforts have not delivered competitive results resulting in significant loss of market share.

Intel, can likewise be seen to need momentum to develop for the Moblin platform project. The benefit of being a major force in the Wintel environment is that this has become the base of the IT/networking based developer industry that has developed and supported Linux and web development environments which are becoming central to 3.5G and NG/4G ICT development.

But despite the synergies, we have to see how much effort they put behind the open source part and how well that captures open developers efforts. They have to make the business environment as well as the grunt software development worthwhile... revenue sharing has to be figured out whether than comes directly through revenue shares, incentives... well oiled incentives structure has to be part of it.

Intel has gained more business in 3.5G by far than from WiMAX. They were not the leaders in GSM/WCDMA developments and lack the degree of IPR needed to play on an even basis. This agreement gives Intel much needed IPR modem licenses from Nokia. How this is structured is a big question but that may be difficult to answer because companies are reluctant to discuss details of their IPR agreements. But they may bracket the boundaries of the agreement so it van be better understood what Intel and Nokia may make from it. We shall see.

Where can Intel build business? Intel needs to use their world leading manufacturing process technologies and capacity combined with their own and any bought-in design capability needed to deliver higher processing power at low energy consumption needed for personal computing devices to multi-task compute intensive applications and power hungry bandwidth. 3.5G is by far the largest and fastest growing in absolute numbers business opportunity Intel has on the near term horizon. WiMAX only wonks are just as bad as 3G BORG types in disparaging prospects for the other camp's religious beliefs. The underlying religion is that new technology and openness of apps is needed to drive the industry forward. How that is made real is the chess game struggle... but still just a game: a ship on the ocean and not the ocean.

Intel isn't turning their back on WiMAX. But to the degree that the 3G BORG assimilates WiMAX technology and business methods, Intel should by all means ride the wave of underlying trends. Anything less would be idiotic.

The Nokia-Intel deal has several moving parts

Posted by Anonymous at 2009-06-25 05:25 PM
Will there be real results are simply "visions of sugar plums dancing in their heads?"

Intel obviously recognizes the shift from desktop to mobile computing, but so far has been unable to capitalize on it. Will the lower power version of Atom processor (code named Moorestown) be the ticket, especially when combined with 3G-HSPA silicon technology)? Being able to offer a choice of 3G-HSPA, WiMAX, and WiFi silicon and COMBINING that with Moorestown just might be the key moving parts that have so far been either missing or broken.

What's the impact on Intel's WiMAX strategy?

Posted by Carl Townsend at 2009-06-25 05:05 PM
Most likely little, if any. It is worth noting the announcement came from Intel's Ultra Mobility Group which is focused on developing platforms for smart phones and MIDs (mobile internet devices) and penetrating the mobility market has been their objective all along. To accomplish that goal, Intel needs additional connectivity options to compete with other handsets such as the iPhone and the Palm Pre that include 3G.

Impact on WiMAX strategy: dilution and confusion

Posted by caridad maria lopez-garcia at 2009-06-25 07:06 PM
With the promise and potential of WiMAX MIDs still waiting to be realized (if ever), we are now likely to see 3G-HSPA MID-Phones from LG and Nokia with "Intel inside." They will use the Moorestown version of the AToM processor, which has not yet been released for production.

This partnership of technology visions will likely dilute Intel's strong push for Mobile WiMAX and serve to confuse the industry (as Nokia has trash talked the technology as the new Betamax).

The upshot is that there won't be any hand held Mobile WiMAX devices with Intel silicon anytime soon. But there are many other WiMAX semiconductor companies who can take up the slack- e.g. Beceem, Sequans, GCT, Wavesat, etc. Those companies are likely to gain market share at Intel's expense.

Analyst Opinion – Intel + Nokia Strategic Relationship

Posted by Rob Enderle at 2009-06-26 09:20 AM
Intel + Nokia: In search of relevance, by Rob Enderle

Intel and Nokia announced a strategic relationship this week, a relationship that would point to a cooperation targeting the development of next-generation communicatiosn devices. The smartphone space is defined by four product vendors and one processor – none of which are currently Intel or Nokia. ARM is the dominant processor technology that is supplied by companies like Marvell, which uses technology that has been picked up up from Intel and Qualcomm. What is the tactical and strategic outlook of this segment, in which only one thing is certain: Going forward, you’ll generally want a smartphone other than the one you actually have.

From a tactical standpoint, this cooperationshould open doors for Intel with cell phone OEMs. Intel needs to create the impression of a growing feeding frenzy for their new Atom based cellphone processor. Companies don’t like to change technologies, regardless of the benefits. Changes represent risk and there is little in the way of margins in this segment, so mistakes can be incredibly painful for a cellphone company. In general, they practice the “better the devil you know than the one you don’t philosophy” which works against a challenging vendor like Intel. Conceivably, this was a good tactical move for Intel to gain mindshare and then use that to drive future sales.

For Nokia, the tactics of this aren’t as beneficial or clear. Nokia needs to sell current products and this relationship suggests there may be better ones coming shortly, which will obsolete what is already in the market. Developers on their Symbian platform may see this as a signal that Nokia is planning to abandon it. But Nokia has little mindshare in the smartphone space and they may be bleeding Symbian developers anyway. It puts Nokia in the news, however, it could also hurt current sales, creating a risky and potentially expensive tactical risk. There is also beginning speculation that they may not be working on a new Smartphone at all, but a Netbook of some kind, setting an expectation that might not be met.

Strategic implications

This is weaker for Intel, because Nokia simply isn’t perceived as a major player in the smartphone space. To be successful, that would have to change. From a strategic standpoint, their relationship with Apple or a partnership with RIM, Palm, or Google would be vastly more powerful, because they are all seen as major players in the targeted segment today.

Strategically for Nokia, this is actually a little stronger, because it puts them in the news as a smartphone player and gives them a chance to start to rebuild an image as a leader in the smartphone segment. Getting people talking about Nokia is one of the first steps to building relevance back. C, thisoupled with a compelling device could allow them to get back into the game at some future point.

Complete article at:
http://www.tgdaily.com/content/view/42994/119/


Another Analyst's Opinion: Nokia to Offer an Android Netbook in 2010

Posted by John Sullivan at 2009-06-29 09:39 AM
Rather then use Intel's Atom processor/Moorestown and mobile Linux, an analyst believes that Nokia will instead use an ARM processor with Google's Android software platform/OS.

Nokia plans to launch an ARM-based netbook that relies on the Google-pioneered Android mobile operating system in 2010, writes Lazard Capital Markets analyst Daniel Amir in a research note issued this morning. In the same note, he predicts that the total number of netbooks sold worldwide will reach 25 million in 2009 vs. 10 million in 2008, with the majority of them being Intel-based machines running Windows.

Amir said he expects the Nokia notebook to be sold through carriers, which fits with Nokia’s distribution system for mobile phones. From the note:

“In our conversations with ODMs, we have confirmed that Nokia is planning to enter the netbook market with a Google Android, ARM-based netbook that would be sold at carriers. Considering this market is dominated by the PC players, we believe Nokia could face an uphill battle to succeed in this market.”

http://gigaom.com/2009/06/26/analyst-nokia-to-offer-an-android-netbook-in-2010/

So if this analyst is correct, Nokia will be going with a netbook that has nothing to do with the technology that is to be the basis for the strategic relationship with Intel.

Some more points

Posted by Robert Syputa at 2009-06-29 09:41 AM
The articles and comments about Intel's past inability to become a major player in mobile and limited advantages that Nokia might gain from the partnership are misplaced.

Perceptions of some about Nokia's position in SmartPhones is small or unimportant are wrong: Nokia is the world's largest supplier of SmartPhones, holding 40%. Although down sharply due to losses to iPhone and RIM, Nokia has more than twice the share of its largest rivals. http://tinyurl.com/aogmdt

The past failure of Intel to become a mobile phone IC player was due to a number of factor. The main reason is that their processor capabilities were not needed. The past failures reflect back on times when mobile service was not broadband. Intel wasn't needed until the bandwidth, storage, graphics and applications required faster processors.

The strategic rationale for the deal make sense.

Intel's low power processors and Wind River acquisition for mobile computing devices

Posted by Anonymous at 2009-06-29 09:42 AM
Intel has a comprehensive plan to reduce power consumption on its device oriented processors. Moorestown will be the 2nd generation of the Atom processor, followed by Medfield in early 2010. Power efficiency is expected to improve with each successive platform.

We expect the recent Wind River acquisition to play a key role in Intel's mobile computing offerings, providing the necessary software to complement its low power processor line-up.


Will it be a netbook, MID, smart phone or something else?

Posted by Caridad Maria Lopez-Garcia at 2009-06-29 09:43 AM
Again, the public is left wondering what the 1st Nokia-Intel "mobile computing device" will actually be.

An analyst commented that Nokia was making an Android based netbook with an ARM processor (which is not made by Intel). If true, netbooks are out, which leaves smart phones and MIDs (if there is such a thing) as possible devices.

Intel has talked about MIDs for several years. Here is a report of an Intel presentation on this subject in January 2008 at an IEEE ComSoc-SCV meeting:

The Internet in Your Pocket: Mobile Internet Devices (MIDs) & WiMAX
http://ewh.ieee.org/r6/scv/comsoc/Summary_011608_MIDWiMAX.pdf

And a quote from that ComSoc-SCV meeting summary (written by Alan):

"MIDs most hit consumer price points and support the following requirements:
• Small form factor
• Good battery life
• PC-like performance
• PC-like internet experience
• Affordable: PC OS/Internet/Communications ecosystem
• AND: Anytime/Anywhere BROADBAND (MOBILE WIMAX)"

(Rama Shukla of Intel) "3G will not make for a great mobile Internet user experience, but mobile WiMAX will."
-------------------------------------------------------------------
But won't LG and (probably Nokia) make 3G (and not WiMAX) MIDs?

Will it be a netbook, MID, smart phone or something else?

Posted by Anonymous at 2009-07-04 04:34 PM
I think the first product to come out of this "strategic collaboration" will be a 3G-HSPA MID-Phone combo from Nokia with Intel's Moorestown processor inside. No netbooks or smart phones anytime soon.

I predict the name "MID" will disappear as all the MID functions will be included in future smart phones which will be primarilly used for broadband Internet access, rather than telephony.

The Intel-Nokia partnership of "technology visions" has confused Mobile WiMAX watchers (Nokia has trash talked the technology as the new Betamax, while Intel Capital continues to invest heavilly in Mobile WiMAX providers). Yet Intel has not clarified their position in any way, shape or form

HSPA no threat to WiMAX, says Intel

Posted by Alan Weissberger at 2009-06-29 12:39 PM
How does this square with Intel licensing HSPA technology from Nokia, for use in mobile computing devices?

"Despite the rollout of HSPA networks gathering pace around the world, with the top-end of the HSPA range (without MIMO) offering peak downlink rates of 14.4Mbps, it does not unduly concern Siavash Alamouti, CTO of Intel’s Mobile Wireless Group."

http://www.telecoms.com/11909/hspa-no-threat-to-wimax-says-intel

NOTE: Mr. Alamouti will be speaking at the Oct 14th IEEE ComSoc SCV meeting. He will describe the latest research results of his Mobile Wireless Group.

Relationship between Intel's Ultra Mobility Group and WiMAX Group

Posted by Jack Reed at 2009-07-01 09:48 AM
What is the relationship and role of Intel's WiMAX group in the strategic collaboration with Nokia? No mention of WiMax in the audio or press release.

Questions about Intel's WiMAX products and strategies

Posted by Alan Weissberger at 2009-07-04 10:04 PM
Wimax.com is not an Intel complaint or gripe site.

There have been a lot of commments on this and other articles I've written related to Intel's WiMAX products and 3G/4G technology and strategy. Some are confused. Others have noted a disconnect between Intel Capital's continued investment in WiMAX service providers and Intel Corp's cancellation of the Rosedale chip and unfulfilled promises about WiMAX MIDs and Mobile WiMAX in general. I can NOT answer those questions. Furthermore, I have no business relationship with Intel Corp.

Please do NOT post your Intel questions or comments here. Instead direct them to Intel's web site/PR Department. Please take up your complaints directly with Intel Corp.

Alan Weissberger
IEEE ComSoc SCV Vice Chair and Program Chair
(X-Professor SCU Grad EE Dept)

Questions about Intel's WiMAX products and strategies

Posted by John Jenks at 2009-08-20 06:58 AM
Intel Marketing and PR do not respond to questions submitted via their web site. Hence, we do need an "Intel gripe site" on wimax.com, counter to what Weissberger writes above. We probably won't here anything more from Intel about their so called "strategic partnership," which now seems like a PR ploy.

How will Nokia-Microsoft effect Nokia-Intel partnership?

Posted by anonymous at 2009-08-20 06:58 AM
Nokia-MSFT aims at putting Windows Mobile OS in Nokia hand held devices. But Nokia-Intel is supposed to work with the Moblin OS. And Nokia also has its own Symbian OS. Note that each application program has to be written for a specific OS. So app developers are now in a quandry if they want to produce software that will sell in volume.

Can Intel or Nokia please comment about this mobile OS issue?

Thanks for a great article and excellent pointed comments. Too bad no one from Intel has responded to the comments and questions.



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