Move Over 3G, Here Comes WiMAX

Just when mobile operators are finally getting their costly third-generation networks up and running, a new wireless technology pushed by the computer industry is about to mess things up.

At stake are tens of billions of euros in mobile telecoms revenues, as semiconductor giant Intel is putting its formidable weight behind WiMAX, a powerful wireless technology that gives fixed-line telecoms carriers a weapon to hit back at the mobile rivals who have long been eating into their voice revenues. WiMAX, an industry standard that travels under the alternative name "802.16," and is also backed by Finland's mobile phones and networks vendor Nokia (NOK1V.HE: Quote, Profile, Research) , offers lightning fast wireless data communications over distances as far as 50 kilometers.

Compare that with the first 3G networks which, although much faster than today's mobile phone networks, are 30 times slower than WiMAX, and one 3G radio mast covers an area 10 times smaller than WiMAX.

But mobile phone companies have shelled out 100 billion euros for radio frequency licenses to run 3G networks and are currently spending tens of billions on the networks. WiMAX radio spectrum can be free, and carriers need fewer base stations to operate it.