AP Deutsche Telekom Forgoes WiMAX Friday November 3, 5:03 pm ET Deutsche Telekom Forgoes WiMAX Internet Technology in Germany
BERLIN (AP) -- Deutsche Telekom AG said Friday it has decided against using WiMAX technology to expand its high-speed Internet offering in Germany. Therefore, the German telecommunications company said, it won't participate in the upcoming auction of WiMAX spectrum licenses, which will be kicked-off in December by the German federal network agency.
WiMAX offers high-speed Internet access using wireless connections, like WiFi, but it offers greater coverage and costs more. Carriers mostly use WiMAX to expand Internet offerings to rural areas, where there are no fixed-line networks in the ground.
Deutsche Telekom said that after careful consideration, it has decided to use other technologies to expand its high-speed Internet offering into rural areas.
Santa Clara-based chip maker Intel Corp. has been a major supporter of WiMAX, and has said it will invest $1 billion over the next five years to bring the technology to rural areas, including parts of the United States and Brazil. Earlier Friday, Intel Chairman Craig Barrett appeared in India to promote WiMAX there.
The first country to offer limited WiMAX service was South Korea, and Korea Telecom has said it plans to blanket the capital, Seoul, with WiMAX by early 2007.
Deutsche Telekom's American Depositary Receipts slipped 15 cents, or 0.86 percent, to close at $17.28 on the New York Stock Exchange Friday.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.