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Commentary: Will Intel be the last resolve for Taiwan's WiMAX industry?

Intel, the Taiwan government and network-equipment makers all still seem to be positive about the business outlook for the WiMAX industry. Undoubtedly, Taiwan is Intel's closest ally regarding the development of WiMAX products. But is it wise for Taiwan to count solely on Intel for the development of 4G telecom technology at a time when more telecom operators around the globe have stated that they will throw their weight behind the development of LTE (Long Term Evolution)?

During the recently concluded IDF (Intel Developer Forum) in San Francisco, the chip giant continued to tout the merits of WiMAX, saying it believed business opportunities for WiMAX products will begin to take off starting the fourth quarter of this year buoyed by the growth of built-in WiMAX modules in notebooks.

However, Intel's claim for a rosy outlook for the WiMAX industry seems to have failed to ignite an enthusiastic response from market insiders. In fact, most have not taken Intel's claim seriously, and LTE is increasingly emerging as the leading 4G technology.

More and more telecom operators, who had previously endorsed the development of both WiMAX and LTE technologies, have changed their positions to back only LTE.

Facing the increasing popularity of LTE, Taiwan's government as well as network-equipment makers who have followed Intel's call to pursue the development of WiMAX, are approaching a crossroads where they will have to reassess their strategy regarding to their deployment of 4G technologies.

Although Taiwan, under the government's encouragement, has nearly completed the establishment of a WiMAX ecosystem, it will have no choice but to consider the possibility of developing LTE, if the standard looks certain to become the mainstream 4G technology.

However, Taiwan's government and makers have not yet responded to the changing technology trend by mapping out proper countermeasures.

Following the signing of a MOU between Taiwan's Ministry of Economic Affairs (MOEA) and Intel in April 2008 for joint investment and development in the WiMAX industry, the MOEA has continued discussions with Intel on how to implement the joint investment projects, but no concrete measures or plans have been released yet.

It is possibly still too early to say Taiwan is taking too great of a risk by counting solely on Intel for the development of a 4G industry centered around WiMAX, but as time goes on, the gamble will only grow potentially more costly.

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