WiMax moves a step closer

Last week’s news about a new WiMax venture involving Sprint, Clearwire, Google, Intel and others could finally pave the way for a wireless networking system that’s not limited to a few hundred feet and – just maybe – not tightly controlled by cellular carriers.

Like WiFi, WiMax makes it possible to transmit signals between base stations, PCs and other devices, including media players and mobile phones. But rather than being limited to about 300 square feet, a single WiMax base station could theoretically radiate a signal for 30 miles to home and office devices, or 10 miles to mobile devices. These ranges, of course, are dependent on a great many factors including terrain and interference.

As for speed, the WiMax Forum claims it can support up to 40 megabits per second in fixed applications or up to 15 Mbps for mobile use (DSL typically delivers below 2 Mbps). But as anyone who’s used a WiFi network knows, speed – like range – depends on lots of factors.

The idea is to create a metropolitan area network where one or more base stations can serve large numbers of people. Such a network could be an alternative to DSL or cable modems for homes and businesses and an alternative to WiFi and cellular for people on the move. It could also provide connectivity to mobile devices, including WiMax phones that use Voice over Internet Protocol (VoIP). A single WiMax station could connect thousands of users to the Internet.

Intel has been a major proponent of WiMax for years and is rolling out access cards, chipsets and other WiMax related technology. And it is embedding WiMax chips in Centrino-based laptops and other mobile devices.

During a question-and-answer session with a small group of reporters Thursday at Google headquarters, Google co-founder Larry Page told me the Clearwire deal is “a significant step in the direction of openness.”

Co-founder Sergey Brin added that Google “benefits from more people having more access to the Internet with greater bandwidth and fewer restrictions.”

Page confirmed that Google staff who work on the company’s Android cell phone operating system were also involved with the Clearwire deal. Android is designed to create a more open environment for cell phone services, and could work on the Clearwire network as well as on other wireless networks and existing cell phone systems.

While Google will offer its open Android mobile operating system to cell phone carriers, the advent of WiMax could allow the search giant to offer direct mobile services without having to negotiate with carriers. Google has already invested in a free citywide WiFi network for its hometown of Mountain View.

Although executives from Verizon, AT&T, Sprint and others have talked about a new spirit of “openness,” mobile carriers are notorious for being control freaks, limiting or attempting to monetize almost anything that happens on their network.

Creating open networks, or at least increasing the number of companies offering mobile services, should go a long way to break the oligopoly that the incumbent carriers now enjoy. Unlike the current U.S. cell phone model, the new WiMax networks are likely to allow for greater flexibility and choice including the ability to get compatible handsets from a variety of companies.

This will become increasingly important as new mobile services emerge, especially with the advent of “cell phone banking” services run by PayPal, Obopay and others that ultimately allow individuals and businesses to use mobile devices to exchange money.

As a cautionary note, it’s important to consider that this new venture has a pedigree that doesn’t exactly scream openness. The new Clearwire will be 51 percent owned by Sprint. Other investors include cable companies Time Warner and Comcast.

Sprint competitors AT&T and Verizon are working on competing high-speed mobile technology called Long Term Evolution (LTE), which involves upgrading existing cellular networks to so called “fourth generation” or 4G capabilities to offer much higher download speeds.

I do worry that the cellular carriers are the major forces behind both WiMax and LTE, and the investment of major cable companies in Clearwire is also a bit concerning. Still, I’m hoping that the presence of other players and increasing pressure toward openness will create a business climate that looks more like the open Internet and less like closed cellular networks.

You don’t have to wait for WiMax or LTE to get wireless access to your laptop. Over the past year, I’ve tested EVDO wireless services from both Sprint and Verizon and both provide reasonably fast Internet service to my laptop. It’s not cheap. Sprint’s unlimited plan is $59.99 a month, while Verizon charges that for up to 5 gigabytes a month. At speeds up to 1.2 Mbps, this solution is acceptable by today’s standards for basic data but still shy of what’s needed for high quality video and voice.