The 4G wireless market is being sold as the biggest and most revolutionary development to hit wireless networks in years. The quickly expanding market could provide a boost to companies like VelaTel Global Communications and Clearwire Corporation -- both of which are making a strong 4G push in emerging markets.The Paragon Report examines the outlook for the Technology Sector and provides equity research on VelaTel Global Communications, Inc. (pinksheets:VELA) and Clearwire Corporation.
China and India were both very late rolling out 3G networks. The two emerging markets are making an effort to catch up to their western peers already by building fourth-generation networks based on the long-term evolution (LTE) technology. Operators in both markets are planning networks based on the time division duplex (TDD) variant of LTE, which differs from frequency division duplex (FDD) technology used in many networks in the United States and Europe.
Analysts at Goldman Sachs report that "TD-LTE" is gaining momentum, with the market for handsets, equipment and semiconductors totalling $98 billion from 2012 to 2016.
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In September Clearwire Corporation formed a partnership with China Mobile to work together to develop products and equipment using a standard of TD-LTE. By partnering with China Mobile, Clearwire takes advantage of the Chinese company, which is the world's largest carrier with more than 700 million subscribers. Although Clearwire has focused to date mostly on the WiMax standard, the company plans to build out an LTE-based network in parallel with its existing service.
VelaTel Global Communications, Inc., through its subsidiaries, operates as a telecommunications carrier primarily in the People's Republic of China and Peru. Last month the company announced that it entered into a Business Agreement with Next Generation Special Network Communication Technology Co., Ltd. (NGSN) in the People's Republic of China (PRC). The parties will work on the deployment of a 4G network that will employ TD-LTE technology using equipment already commercially available and manufactured by VelaTel's strategic partner ZTE Corporation.
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