As Clearwire Falls, More Money For WiMax

From 247WallSt

Telsima, a WiMax equipment company, has raised another $50 million from VC firms including NewPath Ventures and Intel Capital. The WiMax standard already has tremendous backing from large tech companies including Intel (Nasdaq: INTC), Motorola (NYSE: MOT) and Samsung. Analysts believe that the new standard could take revenue away from Qualcomm (Nasdaq: QCOM) which makes components for broadband handsets.

WiMax would also threaten the broadband business of cable and telecom companies. In other words, the technology could be "disruptive".

But, the path for WiMax may not be without potholes. New WiMax IPO Clearwire (Nasdaq: CLWR) traded at $27.95 immediately after it began trading. It now sits at $19.30. And, activist investors are trying to get Sprint (NYSE: S) to cut back on its investment in a next generation wireless broadband infrastructure based on WiMax.

The debate over whether WiMax has a huge future may be driven by the early results from Sprint. But, the money being bet for and against the tech is growing quickly.

Douglas A. McIntyre

For more market insight go to http://www.247wallst.com/

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