Why Telecomms Make Poor Choices (or, Why Capitalism Sometimes Doesn’t Work)

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intel logoIt’s not often those interested in the mobile industry receive insight into how and why things work. That’s why as soon as we saw this article discussing how mobile tech vendors exact (often faulty) control over the industry, we had to send it your way. The majority of the article focuses on Intel’s big WiMAX push as the next mobile communications technology: why they’re doing it, why it’s probably not the best choice, and how they might get away with it anyways.

But whether WiMAX is an appropriate mobile technology or not, it doesn’t seem to have mattered much. Without any proof beyond PowerPoint slides and a dream, Intel threw BILLIONS of dollars at promoting WiMAX from its modest beginnings into the heir apparent of wireless networks. Some of the hundreds of millions were spent in investing in WiMAX technology providers, some was spent on press briefings, glitzy events, roadshows, owning the agendas of many conferences, co-marketing funds with smaller companies to get them aligned and in other cash incentives to sway service providers. The sum effect of all these efforts is very powerful indeed.

While the article is written by the Manager of the Global UMTS TDD Alliance (a little biased, maybe?), it’s worth reading to see just exactly who chooses what technology goes into your favorite mobile device.