SECTION OR CHAPTER TITLE

WiMAX Slowly Gaining

Traction
Still a nascent technology, hype over the viability of WiMAX is giving way to activity in all
regions of the globe, including carrier trials and deployments, infrastructure investments,
and WiMAX licensing. Current WiMAX strategies vary by geographical market and by
types of carrier, depending on maturity of markets and levels of extant broadband
infrastructure. The fixed and nomadic versions of WiMAX will comprise the majority of
deployments in the short term, and mobile WiMAX will begin to gain traction in 2010.

WiMAX Overview
Introduction
WiMAX or “Worldwide Interoperability for Microwave Access” is an
Institute for Electrical and Electronics Engineers (IEEE) standard,
designated 802.16, enabling the delivery of last-mile wireless broadband
access as an alternative to cable and DSL. According to the WiMAX
Forum, which was formed in June 2001 to promote conformance and
interoperability of the IEEE 802.16 standard, WiMAX can provide fixed,
nomadic, portable, and mobile wireless broadband connectivity. The two
WiMAX standards that are garnering the most attention are 802.16-2004
(also referred to 802.16d), the fixed wireless broadband access version;
Fixed WiMAX has and 802.16-2005 (also referred to as 802.16e), known as mobile
enough bandwidth to broadband. These versions of WiMAX have the potential to provide
simultaneously connectivity that bypasses wireline telecommunications infrastructures,
support hundreds of including landline (DSL, fiber-to-the-home/node, T1, E1), coaxial cable,
business T1- and mobile networks.
equivalent
connections, and
thousands of
Outlook
residences
Global WiMAX with DSL-
Subscribers Products for the fixed wireless version of WiMAX began taking hold in
type connectivity.
Pre-802.16e 802.16e 2006. According to TeleGeography’s WiMAX Market Tracking Service,
there were 37 WiMAX networks in commercial service at the end of
Subscribers (millions)

30 December 2006, up from ten in December 2005. Of these networks, the

25 majority provided high-speed Internet services to areas not covered by
20 wired networks. The first certified mobile WiMAX systems, based on the
15 IEEE 802.16e standard, are expected in 1H07, and will ramp up over the
10 next 12–18 months.
5
0
200620072008200920102011
Source: Yankee Group

1 WiMAX: Slowly Gaining Traction

The WiMAX Forum WiMAX Infrastructure Investments
estimates that According to Deutsche Bank, between 2005 and 2010, WiMAX
between 220 and 230 infrastructure investment will grow 2.5 times as fast as 3G+ mobile, but
operators are will be a comparatively small base, as 3G+ investments are expected to be
actively trialing around US$60 billion in 2010. IDC expects global WiMAX infrastructure
WiMAX today, investments to grow from US$939 million in 2006 to US$3.6 billion in
including British 2011, led by Asia-Pacific, North America, and Western Europe.
Telecom, France
Telecom, China
Telecom, AT&T, Worldwide WiMAX Infrastructure Revenue by Region
Deutsche Telecom, US$ millions 2006 2007 2008 2009 2010 2011
Covad, and Qwest.
Asia-Pacific 595 839 1,027 1,467 1,681 1,857

Central and Eastern 43 59 73 88 105 113

Europe
Latin America 24 45 72 100 110 115
Middle East and 88 106 115 125 133 138
Africa
North
Source:America
IDC 74 349 576 680 761 799
Western Europe 115 200 310 399 526 563
Carrier Strategies
Market Maturity
“Within three years, Slow emerging markets—including Myanmar (Burma), Rwanda, and
10 million to 20 million Uzbekistan—are characterized by low penetration of
people in India would telecommunications services and minimal infrastructure and regulatory
use WiMAX for control. Internet service providers (ISPs) are favoring WiFi and WiMAX
broadband to support primary communication connectivity for enterprises, affluent
connections.” local residents, and expatriates.
—Subodh Bhargava, Fast emerging markets—including China, India, Brazil, Indonesia,
Chairman of VSNL Malaysia, Mexico, Pakistan, Poland, Ukraine, and Russia—broadband
demand is high, but limited landline infrastructure is available. WiMAX
is seen as a cost-effective means to drive broadband penetration. Speed
to market is critical. According Sylvain Fabre, a Gartner analyst, the
speed at which WiMax could be put into place could favor start-up
providers. “In emerging countries, a lot of stuff cannot be rolled out fast
enough. The speed at which you can roll this out gives these players a
competitive advantage.”
2
 In mature markets, like North America, most Western European
countries, Australia and Singapore, WiMAX is currently positioned
AT&T, BT, and Verizon as a fixed and nomadic solution, with longer-term possibilities of it
may use WiMAX as an becoming a fully mobile broadband solution. In two of the most
adjunct to their fiber-to- mature communications markets, Korea and Japan, WiMAX is
the-home deployments, positioned as a mobile personal broadband solution, to complement
and satellite highly penetrated fixed broadband services.
broadcasters are
considering WiMAX as a Mobile WiMAX Leaders
back channel. Several carriers have forged ahead with robust mobile WiMAX
strategies. In North America, US firms Sprint Nextel and Clearwire
are deploying nationwide mobile WiMAX networks. Canada’s
Inukshuk (a joint venture between Bell Canada and Rogers Wireless)
is a nationwide broadband wireless wholesaler. In Korea, Korea
Telecom and South Korea Telecom both have commercial WiBro
operations (WiBro is based on the 802.16e standard), and are
positioning the technology as a complement to existing 3G
deployments. They are working with mobile handset makers
including Samsung and LG-Nortel to develop consumer electronic
and integrated 3G/WiMAX devices in support of their networks. In
Pakistan, Wateen Telecom is deploying a nationwide mobile
WiMAX network.

Mobility Will Tighten Competition

Most WiMAX deployments are fixed and nomadic applications
targeted at urban, rural, and regional areas. A range of players,
“Regulatory policies and including wireline carriers, wireless ISPs, competitive carriers, and
spectrum allocations in municipalities, are leveraging WiMAX capabilities for competitive
major markets will differentiation and to penetrate underserved markets. Several firms
determine the scale of are using WiMAX as a backhaul solution to support the growing
fixed and mobile traffic on their existing networks (e.g., WiFi, WLANs).
solutions over the next Uncertainty clouds the impact of mobile WiMAX versus 3G mobile
five years. The pricing broadband networks that have been heavily deployed by leading
and availability of carriers across the globe. At best, most industry watchers believe it is
equipment and robust too soon to tell, but posit mobile WiMAX as a disruptive technology
service delivery that will likely force the 3G community to accelerate its technology
ecosystems will depend road maps and consider how WiMAX fits into its network strategies.
on the scale that WiMAX
achieves in the global
marketplace.”
—Yankee Group

3
Sources:
Joanna Makris, Ben Shamsian, and Catriona Hamilton, “Redline
Communications: WiMAX to the Masses; Initiating Coverage,” Canaccord
Adams, 11 January 2007.

Philip Marshall and Tara Howard, “Modest WiMAX Market Grows Despite
Uncertainty,” Yankee Group, January 2007.

“2007 – The Year WiMAX Finally Comes of Age,” Telegeography,

http://www.telegeography.com/cu/article.php?article_id=16412, 30 January
2007.

Gareth Jenkins and Jussi Uskola, “Telecoms: At the Starting LineThe Race to
Mobile Broadband,” Deutsche Bank, 2 February 2007.

James Connell, “WiMAX Is Finding a Home across the Digital Divide,”

International Herald Tribune Online,
http://www.iht.com/articles/2007/02/14/business/wimax.php,
14 February 2007.

Rick Merritt, “4G Face Finds WiMAX in Minority Position,” Electronic

Engineering Times, 22 January 2007, via Factiva,  2007 CMP Media LLC.