Asia is resolved to adopt a super high speed wireless Internet access standard called WiMAX, and if the technology delivers on its vaunted promises, it could squeeze out older third-generation (3G) network operators.

From developed countries like South Korea to emerging ones like Vietnam, WiMAX supporters reckon it will compete with 3G networks for high-speed Internet, and by allowing huge distances to be covered with wireless access, connect some of the most remote towns and villages.

Taiwan is the latest enthusiastic proponent of the new technology, giving out six licenses last month and asking companies to build their networks in the next year and a half.

If the largely untested standard takes off, Taiwanese WiMax equipment makers, such as Gemtek Technology Co Ltd., D-Link, ZyXEL Communication Corp and Accton Technology Corp. could see their profits surge.

Macquarie Securities reckons Gemtek's earnings will grow by 55 percent in 2007 and 31 percent in 2008 as WiMax takes off.

"WiMAX is a threat to 3G to the extent that both technologies are chasing partly the same market," said Gartner analyst Nick Ingelbrecht. "But the two are not strictly attacking the same market now and also WiMax doesn't have sufficient scale, maturity or momentum to pose a serious threat to 3G networks yet."

WiMAX — seen as the big brother to the WiFi standard, which only work near to a transmitter — allows anyone with a WiMAX enabled laptop or media device to download songs, movies and business presentations over distances of up to 30 miles (50 km).

Investment in WiMAX networks worldwide is expected to reach at least $5.2 billion between 2006 and 2008, according to Taiwanese think tank Market Intelligence Center, with spending growing at a compounded annual rate of 150 percent.

WHYMAX?

WiMAX is expected to be rolled out commercially in nearly every major Asian market over the next two years, giving a big boost to the region's technology companies, some of which, like Korea's Samsung Electronics and LG Electronics, are developing devices to use the network.

Asian governments see the new standard as a promising source of future growth for their technology industries.

"A key reason (to build WiMAX) is to drive the manufacturing industry for equipment vendors, and to create and nurture this ecosystem quickly," said Bill Rojas, director of research for telecoms at International Data Corp (IDC).

U.S. tech giant Intel certainly thinks WiMAX has huge potential. The world's biggest microprocessor maker has been working on the technology for years with the aim of persuading PC makers to build it into their notebooks.

The world's largest mobile phone maker, Nokia, has also thrown its weight behind the campaign with plans to develop WiMAX cellphones. Rival Motorola has joined the bandwagon and is planning to launch WiMAX mobile phones next year.

Investments in WiMAX has taken off since Sprint Nextel Corp., the third largest U.S. wireless carrier, said it would spend up to $5 billion on WiMAX networks by 2010.

WIBRO

South Korea, with one of the world's highest broadband penetration rates, is the first country to bring WiMAX to the market. Samsung unveiled its WiMAX device last year and the country's top telecoms carrier KT Corp launched its WiMAX service called WiBro last June in Seoul.

KT spent 420 billion won ($445 million) on the network in 2006, building WiBro's user base to 34,000 at the end of July, and plans to spend 240 billion won this year.

In Japan, the telecommunications ministry is encouraging smaller operators like Acca Networks Co. Ltd. to set up joint ventures with incumbents players like NTT DoCoMo Inc. and KDDI Corp. to provide WiMAX services.

One of the winners of Taiwan's licenses, Far EasTone, said it sees WiMAX as complementary to its current 3G network.

"With WiMAX, we will have the capacity to provide high-speed wireless broadband to more customers, and it is a very important move for our overall business strategy," said Jan Nilsson, president of Far EasTone.

Nilsson estimated Far EasTone's WiMAX network could cost around T$5 billion ($152 million) to build.