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Friday, August 11, 2006

WiMax Nation: Motorola Wins

Stocks: (MOT)(INTC)(S)

Motorola's stock has sold off a bit since it announced earnings that were better than almost anyone expected. Revenue for the period ending July 1 was $10.471 billion. Operating income was $1.477 billion. The stock has popped up from below $19 in mid-July to over $23 a week ago. It now sells at $22.50.

Intel has been cast as the big winner in Sprint's decision to us WiMax for its next generation of hand-held phone since it makes the chips for these devices and is trying to get beyond the PC wasteland. But, Motorola will build much of the infrastructure.

Motorola WiMax handsets are already being tested in India and Vietnam according to TechnoFusion. Motorola is also involved in the nationwide WiMax network in Pakistan according to WiMax Industry News. In most of these deployments, including the one with Sprint, Motorola is providing supplying wireless radio technology, IP core switching, and handsets according to reporting by

Motorola is now a $40 billion company, but if WiMax deployments become a reality in a number of large countries, the hardware that Motorola sells could add billions more per year to the company's revenue. And that could add some thrust to the company's share price.

Douglas A. McIntyre can be reached at He does not own securites in companies that he writes about.

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