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BellSouth's WiMAX plans: cannibalization or competitive weapon?

Reuters reports that BellSouth is investigating Wi-MAX technology as an inexpensive (to them, that is) way to provide high-speed Web services in areas where its wired network has been damaged, degraded, or not yet built-up.Testing efforts are scheduled for various BellSouth labs in the coming months, with live testing likely in the fall.
Written by Russell Shaw, Contributor
Reuters reports that BellSouth is investigating Wi-MAX technology as an inexpensive (to them, that is) way to provide high-speed Web services in areas where its wired network has been damaged, degraded, or not yet built-up.

Testing efforts are scheduled for various BellSouth labs in the coming months, with live testing likely in the fall. 

BellSouth vice-president for development Michael Bowling throws a strike by noting that communications difficulties encountered after Hurricane Katrina is providing the impetus for this effort. 

"There's a higher level of customer interest in these solutions based on the hurricanes," he says. 

Still, I have to wonder about the future of BellSouth Wi-MAX testing and innovation once the Atlanta-based regional telco becomes part of AT&T. Will such an effort be seen as cannibalistic to high-margin, fee-laden, AT&T broadband Internet service, or as a high-stakes competitive weapon against Wi-Fi islands?

My sense is both. It will be interesting to see how this one plays out. 

Hey Roger Ramjet, our resident WiMAX "true believer," what do you think? 

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