Archive for February 3rd, 2010

WiMAX license auction in India delayed again

Those vendors, including Alvarion, hoping to capitalize on the Indian market in light of an expected 3G and WiMAX license auction this month will once again have to wait, it appears.

The auction will now reportedly begin in April, according to Dow Jones. WiMAX suppliers have been clamoring for a chance at this market, which will likely be the world's largest market for WiMAX. Numerous delays have plagued India's planned auctions, including disputes with the Department of Defense over frequencies and reserve pricing of the licenses.

Interestingly, India's Department of Telecom and regulators are also looking at more auctions shortly after the 3G and WiMAX auctions to support 4G services in the 700MHz band. The 2.5GHz band is being allocated for WiMAX because it is available today.

For more:
- see this Rethink Wireless article

Related articles:
India could see 3G, WiMAX in 2009
WiMAX Forum urges India to proceed with WiMAX spectrum allocations
India sets 3G, WiMAX auction prices

FCC proposes budget that includes broadband plan and spectrum auction authority

The FCC's proposed $325.5 million budget for fiscal year 2011 includes amounts to assist the agency in putting in place a National Broadband Plan along with a proposal to indefinitely extend the authority of the commission to auction spectrum licenses. The FCC explains that an increase in its auction authority will allow it to make more spectrum available for auction during the next decade. Article

Alvarion’s outlook disappoints

Alvarion announced an improved fourth quarter in terms of net loss, but the company's stock fell as analysts remain concerned over the company's first-quarter revenue and profit guidance as well as Alvarion's announcement that an improvement will not likely come until the later half of the year.

Thanks to lower expenses, Alvarion reported a narrower net loss for the fourth quarter that decreased to $1.30 million from $4.85 million compared with the prior-year quarter. Sales for the quarter fell 14 percent to $60.24 million from $70.09 million in the year-ago period. Most analysts were looking for revenues of $59.09 million for the quarter. 

Net loss for the full year came in at $7.19 million from $5.46 million in 2009. Revenues decreased to $245.24 million, slightly above he consensus estimate, from $281.28 million in the previous year.

Alvarion President and CEO Eran Gorev said during the company's conference call with analysts that 2009 was a challenging year, highlighted by the global credit crisis. "Telecommunications and wireless broadband in particular were certainly impacted by this as well. Credit is still tight; this is not news to all of you. Operators have been and continue to manage their cash very carefully and number of investment plans that were put together at the end of 2008 going into 2009 will put on hold. And we've seen the impact of that throughout 2009," he said, according to transcripts from Seeking Alpha.

Gorev cited the delay in U.S. broadband stimulus fund awards, which were expected to be granted in the fourth quarter, and India's constant delay of releasing WiMAX licenses were two significant business delays for the company.

These are two, while very important, but only two of a number of other examples of some delays in respect of a number of business catalysts [that] are still expected to happen during 2010," he said.

For more:
- see this Reuters article
- read this transcript from Seeking Alpha

Related articles:
Wireless in the fourth quarter of 2009   
Nokia Siemens expands OEM agreement with Alvarion, effectively ends WiMAX infrastructure business  
Alvarion lassos $100M WiMAX deal with Open Range
Zacks: Prospects good for Alvarion

In-Stat: LTE rollouts impeded by success of 3G

A new report from In-Stat concludes that while LTE is the clear choice for the next generation of wireless networks, its deployment will be stymied by the success of 3G networks and their follow-on technologies such as HSPA and HSPA+ as mobile operators look to leverage their installed networks.

"LTE still has several glaring issues," says Allen Nogee, In-Stat analyst, in a release. "These include lack of spectrum, signal-to-noise ratio and non-established patent and royalty pool. It's clear that the shift toward 4G LTE will be gradual and protracted."

In-Stat noted that even though LTE is the 4G standard of choice, mobile WiMAX will have more than five times as many global subscribers as LTE in 2013, despite the fact that mobile WiMAX now has a distinct niche. The firm also doesn't expect LTE mobile handsets to begin shipping until the second half of 2012.

For more:
- see this release

Related articles:
AT&T & LTE vs. T-Mobile & HSPA+ = Fight!
Motorola sees big opportunity for TD-LTE
A photo walk through of Verizon's LTE ambitions

Telus takes Mediaroom route for new IPTV launch

Add Canada's Telus to the list of service providers that have launched IPTV offerings on Microsoft's Mediaroom platform. Telus is another telco that comes to the platform after using Minerva Networks software for an earlier rollout. The Mediaroom-based launch so far encompasses the Edmonton, Alberta area and a few dozen or so other communities in British Columbia and Alberta.

The Telus TV customers who have been aboard the Minerva Networks' IPTV platform thus far will be allowed to move onto Mediaroom in the coming months. Telus also re-sells satellite TV service from Bell Canada.

Last year, SureWest Communcations in the U.S. made the switch from Minerva to Microsoft. Increasing capabilities and streamline cost scenarios have helped Microsoft's platform find some new appeal, in particular among independent telcos and service providers that had rolled out very early TV offerings over other platforms.

For more:
InteractiveTV Today has this post

Related articles
IPTV and satellite fed Telus TV gains  in 2009
Telus started re-selling BCE's satellite TV last summer
SureWest switched to Mediaroom last year