Sprint (S) contracts for Zyxel for WiMAX equipment

Sprint Nextel Corp. (NYSE:S), which is charging full-steam ahead on the 4G wireless front with WiMAX technology, is using Zyxel Communications of Taiwan as its primary vendor for equipment needed to bring broadband Internet into customers' homes and businesses.

This is an important contract for the Reston, Va-based telecom company which is counting WiMAX technology to give it an edge with mobile products like wireless handsets with lightning-fast broadband speeds, Sprint also need to compete with the cable modem and DSL industry to reach fixed-location customers with broadband Internet services. Zyxel's products will be central in that effort.

But a difference here is that Zyxel's products are already mobile. Unlike a cable modem or DSL modem, WiMAX is meant to be mobile. Imagine being able to unplug that small USB WiMAX modem from your desktop PC and take it for use with you anywhere in the U.S. where Sprint's WiMAX service will be available. That is a very distinct competitive advantage that cable and DSL operators can't touch. Although Laptop PCs are outselling desktop PCs, there is still a need for mobile broadband with those millions of clunky but powerful computers small and large offices -- and homes.