Chinese telecoms vendor ZTE has announced that it will begin cranking out WiMAX gear using Intel chips.

I'm glad to see ZTE gearing up for commercial WiMAX gear. I think that this company in particular will play a large role in helping WiMAX live up to its hype. That's because ZTE has built a nice global business on undercutting the Nortels of the world with less-expensive gear. If WiMAX is going to succeed big, it needs to be disruptively inexpensive and ZTE is just the company to get it there.

I also believe that ZTE's larger goal for WiMAX is to leverage the technology to help it gain handset market share. WiMAX, as I've said before, is the "poor carrier's 3G." Many carriers want to offer 3G-like services but simply can't justify the 3G equipment prices. WiMAX might fill that gap quite nicely.

For instance, a "limited mobility" technology known as PHS has been successful in China because it allows carriers to offer consumers a cellular service at low cost with a low geographic range. ZTE just happens to be the market leader with PHS in China. WiMAX could very well be viewed by ZTE as the next-generation PHS.