Sprint Nextel, a U.S. mobile operator, officially launched mobile WiMax (known in WiBro in Korea) in Baltimore. At this time of moment, WiBro has been failed in Korea and it's why eyes are on the U.S. version of the service.
WiBro equipment and device manufacturers including Samsung might hope the success of the service more than Sprint does. Also, they want it to be a tipping point for other mobile operators around the world.
In 2004, the Korean government anticipated that WiBro service subscribers would be 600,000 in 2006, or the first year of the service and would reach 8.5 million in 2010. In reality, however, WiBro subscribers in Korea as of September 2008 numbered only 190,000, which is 1/40 of the previous estimation.
The government's rosy expectation that WiBro would generate 24.7 trillion won worth production inducement effect, 13 trillion won worth of value added effect, and the equipment industry would grow as big as 7 trillion won, has proven wrong long ago.
The government should face the consequences because it thought that once it selects technology and standard, market will be created automatically.
Sprint is lucky at least because it can learn from KT, the first-ever, but failed WiBro provider in Korea. What affected the failure of WiBro in Korea includes high broadband penetration, growth of HSDPA, and poor service. As the situation is different in the U.S., the result might be different, too. Therefore, it remains to be seen whether mobile WiMax can be a useful tool for Americans to experience a new type of communication as Sprint Nextel wished.
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