Posted by: Paul DeBeasi
Introduction
Mobile WiMAX is a new business opportunity for incumbent mobile operators, Internet companies, and wireline operators to provide high-speed mobile broadband data services. But where and when will WiMAX service be available?
This blog post is the second in a five part WiMAX tutorial series. It is based upon a series of articles that I wrote for Search Mobile Computing. The first part introduced WiMAX technology, applications, and terminology. Follow-on blog posts will discuss WiMAX performance, security, and devices.
Where in the world is WiMAX?
WiMAX services are in the early stages of deployment throughout the world. In South Korea a subset of WiMAX called WiBRO has been deployed throughout roughly 25% of the country. But as of the end of 2007 only 100,000 subscribers, out of a population of roughly 50,000,000 people, have signed up for service. The mobile Taiwan project, referred to as M-Taiwan, is an ambitious plan to deploy WiMAX throughout all of Taiwan. The Taiwanese government awarded WiMAX frequency spectrum licenses in July 2007, but service is not yet available.
Sprint Xohm
Sprint launched its mobile WiMAX service (called Xohm) in September 2008. The service offers download speeds of 2-4 Mbps and upload speeds of 1-3 Mbps. But the service is not just all about fast Internet access. They make it very easy to sign up for the service. Subscribers are able to sign up by the day or by the month, without binding contracts or cancellation fees. They also allow you to use any of your WiMAX-enabled devices, unlike most mobile services that restrict usage to a single device. Finally, they hint at future services such as online storage, location-based services, and Google Mail.
Clearwire
Clearwire launched their portable wireless Internet service in August 2004, originally designed using pre-standard WiMAX technology. The service is now available in over 16 states across the United States as well as in Europe using standard WiMAX technology. They offer a nomadic WiMAX service (see blog post “part 1” for a definition of nomadic) that competes with cable and DSL Internet service and requires use of a WiMAX modem. The modem is similar to a cable modem except that the WiMAX modem can be moved to any location that receives a Clearwire WiMAX signal and has access to power. The subscriber pays a monthly fee for Internet access, and optionally for phone service.
In May 2008, Sprint and Clearwire formed a new $14.5B joint venture that will focus entirely on mobile WiMAX. The joint venture will be called Clearwire and includes investment from Google, Intel, Comcast, Time Warner, and Bright House Networks. Sprint and Clearwire expect to complete the joint venture transaction in the fourth quarter of 2008. The fundamental question is, does the new ClearWire have sufficient long-term capital to build a nation wide footprint?
Market forces
Most forecasts for mobile WiMAX show rapid growth. For example, Senza Fili Consulting predicts that mobile WiMAX will grow to approximately 25 million subscribers by 2012 (see Figure 1). Although these growth numbers are quite good for a new technology, they have a long way to go to catch up to the 3+ billion subscribers currently using mobile cellular service.
Figure 1: WiMAX Subscribers Forecast (Source: Senza Fili Consulting, 2007)
The current mobile cellular operators are in a dominant position to capture most of the demand for mobile broadband, and will heavily compete with WiMAX operators. Unlike fixed broadband service, which can be cost-effectively deployed in a limited geographic area, mobile broadband service will require a costly investment over a wide area in order to provide sufficient coverage for roaming mobile users. Mobile broadband also requires that the operator own wireless spectrum throughout the coverage area. Lastly, it requires extensive operational experience with wireless technology in order to deploy, maintain, and evolve a sprawling mobile network. Aside from the mobile cellular operators, few companies can satisfy the mobile broadband requirements for capital, spectrum, and wireless experience. And in the US, Sprint and Clearwire are hardly in a strong financial position.
Conclusion
WiMAX service is available in a few select locations, and will provide high-speed broadband Internet access. However, don’t believe all of the WiMAX hype. It will take many years and many billions of dollars to deploy a nationwide WiMAX network. Data service plans from traditional mobile operators will offer the best combination of high-speed data access and broad coverage.
Looking ahead to part 3
The next blog post will look at WiMAX performance. We will discuss what performance factors are important, what performance you should expect, and how WiMAX compares to 3G and future 4G services.
Wi Max is a bit costly but very useful wireless services for high speed broad band access. Now a days demand for wimax is very high.
Posted by: Wireless Services | October 19, 2008 at 11:55 PM