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May 23, 2007 11:05 AM PDT

WiMax could change cell phone contracts

by Tom Krazit

CORONADO, Calif.--Fed up with a cell phone contract that seemingly renews for another two years every time you call to check the balance? Try WiMax.

Kamran Elahian, chairman of Global Catalyst Partners and an investor in WiMax chipmaker Beceem Communications, compared the current state of cellular data communications on smart phones to the old America Online days. Right now, carriers want to have control similar to AOL's control of your dial-up connection, as it tried to keep you within its own network, discouraging exploration of that wild, wooly Internet thing.

But that changed as other ISPs simply connected PC users to the Internet, doing away with the fancy AOL-only portals. The same thing is going to happen to the cellular smart phone industry if carriers can bring high-speed Internet connections to phones and PCs using WiMax technology.

"The world wants a fat pipe," Elahian said. The problem, of course, is that carriers want to recoup their investment in expensive networking technology required to build that fat pipe by charging users hand over fist, he said. The idea behind WiMax appears to be that you would have several WiMax devices, like a laptop and a cell phone, but only pay for one service contract rather than by the device.

That would end the carrier subsidy model, but it would also mean they no longer get to control every aspect of your mobile data surfing, Elahian said. He pointed to Apple's iPhone, with its built-in Wi-Fi chips, as something that might start to change the game. Those early iPhone users might find it easier to get a cheap basic data plan and do all their heavy Internet uploading or downloading over Wi-Fi, and maybe one day WiMax. That's lost revenue for the carrier.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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Why iPhone???
by SeizeCTRL May 23, 2007 1:36 PM PDT
Doesn't Samsung already have a wifi phone out in limited testing with T-Mobile?

What about the Linksys iPhone? There's a wifi SIP version so you can use it with your VoIP service where ever there is a wifi connection.
Reply to this comment
It is just what people know
by BrandonEubanks May 23, 2007 1:49 PM PDT
Everybody who follows any form of electronics news knows about
the iPhone so it is the most logical choice to mae the authors point.
Nothing special, just utility.
Reply to this comment
Bring It On!!
by mt12mindset May 23, 2007 4:44 PM PDT
I'm all for it! Bring on WiMAx, and while you're at it, how about forcing Verizon to give it's customers a wallet break, since they love to cripple their phones, mush like that whole AOL concept, hmmm...

www.cellnumbers.com
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A shift to dashtop
by Quemann May 24, 2007 3:30 PM PDT
Yes, that is true. WiMAX will greatly change everything in the mobile domain in another 2 years, when Sprint completes WiMAX network across the continental USA.
No longer carrier proprietary phones requiring 2-year contract due to the interoperability of WiMAX mobile equipment. And the rate plans will be more flexible and user-friendly.

More importantly, battery life, mobile hand-held safety, growing demand for bigger screen will create a next wave: a shift to Dashtop Mobile Equipment( DME), powered by vehicle battery.
Currently, GPS navigators alone sit on the center of dashtop as a one-trick pony, but the growing shift will point to a more powerful all-in-one on vehicle dashtop.
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