Will WiMAX Get Killed by LTE? (And Will the Smart Grid Get Caught in the Crossfire?)

By John Kluza

 

A number of Smart Grid products or installations are considering using high-bandwidth fourth generation (4G) wireless communications standards, like WiMAX and Long Term Evolution (LTE), for applications such as communicating directly with end points or for backhaul from collection points.

 

Some Smart Grid hardware companies have already chosen a specific 4G standard, for instance GE and GE-backed startup Grid Net are using WiMAX. WiMAX has an early lead in installations, with Sprint’s partner Clearwire operating WiMAX networks, which could carry Smart Grid data, in 27 markets in the U.S at the end of 2009 and KT, UQC, and Yota deploying networks in South Korea, Japan, and Russia, respectively.

 

However, this lead may quickly erode in the coming years, as a large coalition of incumbent carriers and hardware companies has formed around LTE. LTE is backward compatible with UMTS (the currently dominant worldwide 3G wireless standard) and it is designed such that LTE towers require the same locations as 3G technologies, so incumbents find it an attractive way to minimize the cost of upgrading.

 

Verizon Wireless, AT&T, Vodafone, Telefonica, Teliasonera, and many hardware manufacturers are planning to use LTE beginning this year, with Verizon Wireless intending to roll out to 25 or 30 markets by the end of 2010, and Teliasonera intending to roll out to over 30 regions in Sweden, Finland, and Norway by the end of 2010.

 

A public interview after the 2010 Consumer Electronics Show (CES) with Sprint’s National Program Manager for Utilities, Robert Gustin, indicates that Sprint is still publicly committed to WiMAX and has big expectations for it. However, the same week, a public interview with Clearwire’s Chief Commercial Officer, Mike Sievert, showed that Clearwire is hedging its WiMAX bet. He said that Clearwire, historically a leading WiMAX supporter, would like to be thought of as open to different types of technology and not solely a WiMAX carrier. Even this strong WiMAX supporter appears to be acknowledging the strength LTE may have in the market in a few years.

 

The support for LTE from many large carriers and many chipset and device manufacturers will likely drive low hardware prices and broad network coverage, so that in the future, LTE will likely be the dominant standard. This change could bode poorly for GE and Grid Net's current strategy, depending on how agile they are in adapting their systems. Though co-existence is a possible outcome, clients should exercise caution when making bets involving a 4G standard for an upcoming Smart Grid project, especially when considering WiMAX.

 

John Kluza is an analyst for Lux Research, which provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance and government rely on Lux Research to help them make informed strategic decisions. Through their unique research approach focused on primary research and their extensive global network, they deliver insight, connections and competitive advantage to their clients. For more information, visit the Lux Research site or contact Carole Jacques to become a Lux Research client.

. 

Opinions shown here are from Lux Research and do not necessarily reflect those of Smart Grid News and its editors.

.

More from the source … 

Lux Research home page

.

You may also be interested in …

Mesh Networks Is Communications Winner in Utility Survey

Smart Grid Companies Give WiMAX Smart Meters a Boost

GE Breaks into Backhaul — Is Local Networking Next?

Smart Grid Communications Technologies

 

Stay connected with SGN …

Smart Grid Discussions: Get LinkedIn with Jesse

Smart Grid on Facebook: Be a Fan

Follow Us on Twitter

Try our RSS feed

Get our email digest