A Journey to the Levant
VON reports that Motorola is hoping that WiMAX success and new Android bases smartphone will help the telecom giant getting out of the red.
The report also claims that:
The first handsets will debut in the fourth quarter, he (co-CEO Sanjay Jha) noted.
OK, it is time for me to do some thinking:
If first handsets will debut in the fourth quarter, when can we expect to see revenues?
As previously reported, UQ communications will start Mobile WiMAX trial on the 26th of February.
Since I am familiar with the WiMAX technology and Chipset vendors, I decided to research the devices to be used during the trial and Chipset vendors selected by UQ and it’s suppliers.
UQ has currently two suppliers:
1) Shinsei Corporation – Supplying the UD01SS USB and the UD02SS Express Card. Accoring to UQ website, these products are actually from a Korean company – Modacom. Modacom has a complete portfolio of devices for the Korean WiBRO network (WiBRO is almost identical to WiMAX). These devices use GCT WiMAX chipset. This screen capture displays device driver information, which clearly indicates GCT.
2) NEC Access Technica – Supplying the UD-01NA USB and UD-02NA PCMCIA Card type. NEC uses Beceem chipset.
Missing from the list are:
1) Samsung – which supplied the data cards to Sprint’s XOHM WiMAX deployment in Baltimore.
2) Sequans Communications – which power Zyxel’s CPE for the same Xohm deployment.
3) Intel – As Intel Capital invested in UQ, I am certain we will see Intel powered WiMAX laptop within a few months.
I cannot avoid mentioning the UQ connection manager, which in my opinion looks very similar to the KT connection Manager. (And I must admit that also Airspan’s MiMAX USB, which I developed, had the same look and feel).
I have just posted on Asiajin the latest news from UQ communications. As the company prepares for the launch in July, an extensive trail period is expected. I am trying to enroll as a “Monitor”(a trial participant), but the chances are slim.
Every time I encounter a WiMAX deployment, I immediately check coverage. As I happen to move to Kawasaki in about 3 weeks, I decided to check if I can get a WiMAX signal at home.
Map is attached, but I am afraid I cannot conclude from the resolution provided if our house is in the pink (there is coverage) or white (no WiMAX for me).
As we all know, Intel Capital invested in most major Mobile WiMAX deployments around the world (UQC in Japan, Clearwire in the US, DBD Germany… and more).
As it turns out Unwired (Australia)didn’t deploy Mobile WiMAX as planned and agreed. Intel Capital sues Unwired, or rather, the Group that recently acquired Unwired for $56 Millions.
According to this article, titled “Unwired fights $56 Million Payout”:
At the time, Intel agreed to take $37.5 million worth of convertible notes in the company in return for certain guarantees.
The agreement called for Unwired to build a national WiMax network that would provide Intel with a platform to market-test WiMax chips and equipment it had been developing.
My Conclusions:
1) Unwired will never deploy Mobile WiMAX!
2) Intel Capital should select partners more carefully. I don’t think this law suit will actually help Intel deploy Mobile WiMAX in Australia.
Some more information on Nortel exiting Mobile WiMAX business can be found: unstrung, and here.
Nortel and Alvarion are comitted to their customers, but my question is: “Where is the money”?
If a customer already paid Nortel, how can Alvarion guarantee they are getting paid for the effort and equipment.
A week after Airspan published a warning , Alvarion is providing some information, financial and strategic impacts following Nortel’s bankruptcy.
Alvarion now expects a Q4 GAAP net loss of approximately ($4.9) million, or approximately ($0.08) per share, including a restructuring charge of approximately $3.4 million or $0.06 per share for the quarter, related to the cost reduction initiatives announced on December 8, 2008.
As for revenues:
“total revenues for the fourth quarter ended December 31, 2008, are expected to be approximately $70 million, at the low end of the Company’s revenue guidance of $70 to $78 million”
Alvarion stock (NASDAQ: ALVR) went down yesterday 5.57% Before this press release.
Was just invited to join the LinkedIn Connection List Private Beta.
A major improvement from the previous Connection management tab, and allows browsing connections through: tags, Companies, Location, Industries and Activity.
Following Google’s 4th quarter earnings Techcrunch reports that Google wrote down AOL And Clearwire investments.
The Clearwire writedown isn’t surprising either. That is the Wimax company that had disaster written all over it.
This is a $355 Million Dollars write down! And shows how much confidence Google has in Clearwire Mobile WiMAX deployment
To offset the bad news, Airspan has also release some good news: Cost Rica’s I.C.E. awarded Airspan a $12.5 Million WiMAX contract.
From the press release, it is clear that this contact is for Fixed WiMAX deployment. (i.e. Not Mobile WiMAX).
Airspan has just released an update on Fourth Quarter and Nortel Exposure:
A preliminary review of fourth quarter 2008 results shows that total shipments in the fourth quarter
2008 amounted to approximately $19 million, of which WiMAX shipments during the quarter amounted to
$17 million. The Company expects to defer some revenue from these shipments during the normal
financial review process, which will impact the final fourth quarter and full year 2008 revenue
numbers.
And $2.7 Million exposure to Nortel:
In connection with Nortel’sJanuary 14th, 2009 bankruptcy announcement, Airspan has outstanding receivables with Nortel in the amount of approximately $2.7 million for products and services delivered and billed through the date of Nortel’s bankruptcy filing. Collection of these receivables is uncertain and will be subject to Nortel’s bankruptcy proceedings. Nortel has informed Airspan that it wishes to continue purchasing goods and services from the Company
I wish Alvarion (NASDAQ:ALVR) would be as transparent.
