The "WiMax is dead, it just doesn't know it yet" crowd scored another talking point (even if wrong) against Mobile WiMax this week with the news that Cisco is going to stop developing and building WiMax gear. Cisco does provide equipment to Clearwire for their Mobile WiMax build, but only core hardware -- not radios. Cisco's decision comes after Alcatel Lucent also recently dropped out the Mobile WiMax business to focus on serving AT&T and Verizon's LTE hardware needs. Cisco acquired WiMax vendor Navini Networks in 2007.

"Cisco's mobile strategy has always been to provide a radio-agnostic approach that focuses on the packet core and IP network, where the company can add differentiated value," says a Cisco spokesman. "After a recent review of our WiMax business, we announced a decision to discontinue designing and building new WiMax base stations and modems, and we also announced a support plan for transitioning existing customers."

Given Cisco's approach of focusing on other aspects of network connectivity, the move isn't surprising -- nor does it equate to the automatic demise if Mobile WiMax, which now "reaches" (not necessarily serves) 650 million people globally, and 47 million in North America. Still, many analysts still think LTE is going to dominate U.S. connectivity, though not a single LTE network has been launched yet.

That optimism comes from the fact that most of them know betting against the combined lobbying and competitive power of AT&T and Verizon usually isn't a great idea. Still, the Sprint/Clearwire joint venture has a lot of powerful friends, including the majority of the cable industry. Should LTE dominate and Mobile WiMax be upstaged, Clearwire has stated they're not ruling out a shift to LTE service as well.