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July 28, 2010: 4G TRENDS WEEKLY NEWSLETTER

4G TRENDS: 4G - at home, on the road, around the world - now from space!

THIS WEEK'S FEATURED ARTICLES:   
- A Harbinger of Sorts: Build It and Will They Come?
- The Anywhere road trip
- Reliance Infotel to choose WiMAX in India after all

4G TRENDS FEATURE:
A HARBINGER OF SORTS: BUILD IT AND WILL THEY COME?
By Chris Nicoll, Distinguished Research Fellow, Yankee Group Research

Harbinger’s announcement of the creation of Lightsquared as the first new 4G 
operator in the U.S. in ages has generated a lot of buzz (would you expect less 
from a company with its foundation in the capital markets?). There are so many 
angles to play with here, this should be fun for a while.  Let’s get started:

Does it worry anyone that Harbinger Capital Partners is a private investment 
firm specializing in event/distressed strategies? Does the building of a 
Greenfield nationwide 4G cellular/satellite network qualify?  There’s more:  
According to their website, “Harbinger Capital Partners seeks to invest in 
alpha-generating ideas that are uncorrelated to investment cycles.” What?  The 
leader putting this together also has special talents -  again, according to 
their website: Philip Falcone leads Harbinger’s investment team, “relying on 
his extensive experience in distressed debt, leveraged finance, and special 
situations across an array of market cycles.” We are talking about billions of 
dollars of investment capital, and the principal and the parent company, so to 
speak, has great experience in distressed debt and distressed strategies?  Does 
this distress anyone?  See, this could get really interesting.

But wait, there’s more!  Harbinger seems to have only about 50% of the funding 
for the venture in place, as they expect to pay for the network build-out from 
revenues generated by the initial builds; the devices are not really available 
and will have to be specially built; and the idea is to hope that the FCC will 
relax its requirements that Lightsquared’s devices also be able to connect to a 
satellite so Lightsquared won’t really have to actually launch any expensive 
satellites or make purpose-built devices.  Hmm.  That is a big IF.  The CEO has 
extensive experience in building and operating networks in Pakistan and France, 
but will need to hire some solid NAM market, regulatory and operational 
expertise, not to mention a really GREAT salesperson.  (Yes, I know, NSN is 
going to operate the new network as well.  From India.  Has anyone done that 
before on this scale?)

The network will likely be built-out late compared to the incumbent mobile 
operators and it is a wholesale network.  SO this is a true Greenfield - not 
just upgrading an existing network.  That comes with its own benefits, and 
challenges.  What both hoping will prove to be a smart move, and probably 
characteristically not in keeping with the incumbent vendors’ choices, is that 
Lightsquared has chosen perennial North American bridesmaid Nokia Siemens 
Networks (NSN) to build out and operate the network.  NSN has for the past year 
been struggling to find its own identity in North America after losing the 
Nortel LTE auction to Ericsson and getting shut out of the incumbent operator 
LTE builds. But they have some top-notch next-generation LTE gear just dying to 
be installed in a Greenfield network somewhere in the U.S.  Seems like a match 
made in heaven.

Continue Reading…
http://4gtrends.com/?p=3899

                 
         
LTE and 3G: "The Next Leap Forward, Hosted by Qualcomm
4G World 2010 also provides an exceptional opportunity for professional 
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Read more>
http://4gworld.com/full-program/monday/
         
MOBILE INTERNET TRENDS
THE ANYWHERE ROAD TRIP   
By Emily Green, President and Chief Executive Officer, Yankee Group Research

A few years ago when we were first centering Yankee Group’s research on 
ubiquitous connectivity, or what we now call Anywhere, I said something that I 
now see was wrong. I claimed that the expansion of connectivity around the 
world would ultimately redefine good vacation experiences not as those that 
include free WiFi, but those that promise the absence of the opportunity to 
connect. Meaning we’d be so exhausted from our connected lives that the best 
vacation would be one in which we would be prevented from connecting - and 
happy about it.

Continue Reading…
http://4gtrends.com/?p=3904
         
WIMAX TRENDS:
RELIANCE INFOTEL TO CHOOSE WIMAX IN INDIA AFTER ALL
By Caroline Gabriel, Contributing Editor, 4G Trends

When the Indian BWA spectrum auctions concluded earlier this year, it seemed 
that the 2.3 GHz TDD band - once considered a clear run for WiMAX - would 
actually be split between that technology and TD-LTE. While state-owned telcos 
BSNL and MTNL are already deploying WiMAX in their 2.3 GHz spectrum, the 
privately held winners were more divided. The only one of these players to get 
licenses nationwide was Infotel, which was quickly snapped up by Indian 
conglomerate Reliance Industries (RIL). The firm implied that it would choose 
LTE for its new frequencies, even though Infotel had previously been committed 
to WiMAX, but now the firm appears to have opted for the more readily available 
technology after all, in the interests of early market impact.

Continue Reading…
http://4gtrends.com/?p=3910

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