4G Initially is Cellular with More Bandwidth

I've learned over the years that when assessing trends, it's always safer to watch what people and organizations do, rather than what they say. Because people and organizations often say one thing and then do another.

Consider IPTV. It gets sold to investors on the value of enhanced applications. It gets bought by real-world consumers largely as a substitute for cable TV. IP telephony is touted for its enhanced features. It mostly gets bought as a substitute for plain old telephone service.

Now fourth generation networks are touted as a platform for machine-to-machine applications that will result in mobile penetration as high as 400 percent or more.

So watch what people spend their money on.

Sprint Nextel executives have been touting new machine-to-machine applications and mobile broadband, saying WiMAX will not simply be 3G with more bandwidth. WiMAX supporters, in fact, often talk about the "mobile Internet" as the way WiMAX will be different from 3G and upcoming LTE networks.

So it is instructive that Clearwire CEO Ben Wolff now is saying Clearwire will focus on "residential broadband, residential voice, mobile broadband and mobile voice" going forward.

Whatever may develop in the future, the near term business plan is fairly simple. Despite what its backers say, 4G networks are, in fact, simply going to take market share from other providers of existing services.