SAN FRANCISCO (Dow Jones) -- The next-generation wireless technology, known as WiMax, is full of potential to drive cheaper, high-speed wireless data, voice and video communications, or a dismal failure, depending on who you talk to.
On the one hand, rumors have surfaced that several cable and technology giants are poised to make a multi-billion dollar investment in the nascent technology. Last week, The Wall Street Journal reported on talks to resuscitate the failed joint venture between Sprint Nextel Corp. (NYSE:S) (US-S) and Clearwire Corp. (NASDAQ-NMS:CLWR) (CLWR), a venture formed to build out a WiMax wireless network in the U.S.
Those talks reportedly include efforts to raise at least $3 billion from cable operators Time- Warner Inc. (NYSE:TWX) (TWX), Comcast Corp. (NASDAQ-NMS:CMCSA) (CMCSA), and Bright House Networks, along with tech firms Intel Corp. (NASDAQ-NMS:INTC) (INTC) and Google Inc. (NASDAQ-NMS:GOOG) (GOOG).
And on the other hand, there is Garth Freeman, the chief executive of a little-known Australian Internet company called Buzz Broadband. A few weeks ago, Freeman spouted off at an industry conference in Thailand, where he lambasted the technology his firm had put into place, calling the episode a "miserable failure."
At face value, the viewpoints seem to be at the opposite ends of the spectrum. One dismisses WiMax, while a new venture, backed by big names and big bucks, could bode well for the adoption of the technology.
But both seem to confirm the increasingly skeptical view that WiMax, once touted as a lower-cost, wider-range wireless technology, is taking longer to deploy, is more expensive than previously estimated and it may not be the wireless panacea once predicted.
"Anyone who is going to spend the money better make sure they do due diligence to make sure it works," said Phillip Reedman, a Gartner analyst. "Like any construction project, it always costs more and takes longer than you originally anticipate."
In February, Andrew Parkin-White, principal analyst of Cambridge, U.K.-based Analysys wrote a critical report of the technology. He said 2008 will be a decisive year for WiMax after the serious setbacks suffered last year, when the plug was pulled on the venture between Sprint Nextel and Clearwire -- a company founded by cellular pioneer Craig McCaw.
As of Monday, no one was willing to confirm the reports that Comcast (NASDAQ-NMS:CMCSA) may be investing as much as $1 billion into a new joint venture operated by Sprint Nextel and Clearwire and that Intel (NASDAQ-NMS:INTC) is reportedly willing to put in as much as $ 1 billion or more.
