Samsung stresses need to seed WiMax market with devices early

Clearwire may only have two markets in which it can sell the new Mondi, but it was critical that Samsung release the new WiMax tablet to create a market for mobile broadband devices before widespread coverage is achieved, according to Samsung WiMax group vice president Hwan Woo Chung. Otherwise WiMax risks becoming just another broadband access service in the US that's only distinguishing quality would be mobility, Chung said.

In an interview at CTIA Wireless, Chung detailed Samsung's WiMax strategy in the US, discussing how the Korean vendor's device and infrastructure divisions were working hand-in-hand to help Clearwire not only build a nationwide 4G network but create a sustainable business model for WiMax in the future. Samsung has now either completed or is in the process of completing WiMax radio networks in five markets, though only one, Baltimore, has commercially launched. While waiting for those markets to get the green light, it is just as important to seed the market with innovative devices that highlight WiMax's unique capabilities, Chung said.

"To promote certain types of usage patterns, Clearwire needs these types of devices," he said. "If not, the service could wind up merely competing with DSL and cable modems. There ‘s got to be something else."

Clearwire has already taken several steps to move beyond the broadband access model. In addition to selling home gateways, Clearwire has launched several USB modems for laptops and supports multiple WiMax embedded laptops from major PC suppliers. At CTIA Wireless, Clearwire introduced the Clear Spot, a WiFi router that, though not an embedded WiMax device in its own right, distributes a WiMax connection among multiple WiFi devices such as laptops, digital music players and digital cameras.

Unveiled at CTIA, Samsung's Mondi is the only standalone WiMax data device in the market. At last year's CTIA, Nokia launched a WiMax version of the N810 Internet tablet, but it halted production of the model late last year, claiming the overall N810 line was approaching the end of its lifecycle. Nokia has made no commitment to develop any additional WiMax devices and recently appears to have backed further away from the technology to focus on competing 4G standard long-term evolution (LTE) devices. That leaves the door wide open for the Mondi, an opportunity Samsung plans to jump on, Chung said.