Published on February 4, 2008
Achieving WirelessBroadband withWiMax: Achieving Wireless Broadband with WiMax Wai-tek Chan Ming-Hsien Wu Basic IEEE 802.16: Basic IEEE 802.16 WiMax allows data transport over multiple broad frequency ranges WiMax’s transmission range and data rate vary significantly depending on the frequency bands an implementation uses Orthogonal frequency division multiplexing (OFDM) 10 to 66 GHz range 75 Mbits IEEE 802.16 EXTENSIONs: IEEE 802.16 EXTENSIONs IEEE 802.16a Spectrum: 2 to 11GHz More flexible while maintaining the technology’s data rate and transmission range IEEE 802.16b 5 and 6 GHz frequency provides quality of service priority transmission for real-time voice and video and to offer differentiated service levels for different traffic types IEEE 802.16 EXTENSIONs: IEEE 802.16 EXTENSIONs IEEE 802.16c 10 to 66 GHz more consistent implementation and interoperability IEEE 802.16d minor improvements and fixes to 802.16a IEEE 802.16e standardize networking between carriers’ fixed base stations and mobile devices high-speed signal handoffs Successful and Popular : Successful and Popular Fundamental Factors: Fundamental Factors Public demand Technical specification Lower-cost Some restriction On T1, DSL, or cable-modem-based connection. Driving Forces Behind Wimax Public Demand: Public Demand Technical Specifications: Technical Specifications Server area range 50km Non Line of Sight QoS (Quality of Service) designed in for voice/Video, differentiated services Very high spectrum utilization: 3.8 bit/Hz Technical Specifications: Technical Specifications Up to 280 Mbps per base stations True broadband for portable users - based on IEEE 802.16e enables the creation of a ‘CPE-less’ broadband market, providing broadband connectivity for laptops and PDAs with integrated WiMax technology Some Existed technology : Some Existed technology Wi-Fi 3G-Communication DSL Cable-modem-based connection Wi-Fi : Wi-Fi Wi-Fi : Wi-Fi Frequency rates Wi-Fi - 2.4GHZ or 5.8GHZ WiMAX - 2GHZ - 66GHZ Maximum Throughput Wi-Fi - 2MBPS – 54 MBPS WiMAX - 70 MBPS Range Wi-Fi - 200 yards WiMAX - Up to 10 miles Reliability of Wi-Fi : Reliability of Wi-Fi FHSS DSSS 3G-Communication: 3G-Communication DSL and Cable-based connection: DSL and Cable-based connection Both of them are broadband Wireline network Lower-cost: Lower-cost The wireless MAN offers an alternative to cabled access networks, such as fiber optic links, coaxial systems using cable modems, and digital subscriber line (DSL) links. Because wireless systems have the capacity to address broad geographic areas without the costly infrastructure development required in deploying cable links to individual sites, the technology may prove less expensive to deploy and may lead to more ubiquitous broadband access. Restriction On T1, DSL, or cable-modem-based connection.: Restriction On T1, DSL, or cable-modem-based connection. Rural areas and developing countries frequently lack optical fiber or copper-wire infrastructures for broadband services, and providers are unwilling to install the necessary equipment for regions with little profit potential . Wireless approaches could address this problem. Restriction On T1, DSL, or cable-modem-based connection: Restriction On T1, DSL, or cable-modem-based connection A principal analyst with the Farpoint Group said that 65 percent of American households with Internet access still do not have broadband connections, and that hopes for broader deployment of high-speed fiber optic lines were fading. ‘There is no great fiber build-out going on,’ he said. ‘Some kind of wireless capacity is necessary to reach the last mile’ . The time for laying fiber optic lines to the home has passed, he argued, because deployment costs have skyrocketed in recent years. It can now cost as much as $300 a foot to lay fiber optic cable. Driving Forces Behind WiMax: Driving Forces Behind WiMax WiMax’s open approach could let manufacturers achieve economies of scale by building large quantities of products and components to one standard. It would also let equipment makers buy lower-cost, standards compliant components from competing suppliers . Driving Forces Behind WiMax: Driving Forces Behind WiMax The company leading the charge for Wimax is Intel. After investing significant capital and marketing muscle into the WiMax market in recent years , in April the electronics giant premiered its first-ever WiMax product , the PRO/Wireless 5116 broadband interface chipset . Intel also expects to begin shipping 802.16e-compliant chips in late 2006 and build them into notebook PCs by 2007 “As we tell carriers it is our intent to build [802.16e]chips into notebooks, we have an expection to build this market substantially “ said Ron Peck, director of marketing for Intel’s WiMax organization 15 service providers and 11 equipment vendors had announced to plans to deliver products based on the PRO/Wireless 5116 chip . WiMax - A marketing worth measuring : WiMax - A marketing worth measuring WiMax is actually not only a technology,but also an organization comprising more than 170 vendors , service providers, system integrators and chip manufacturers . This will be a critical factor in the technology`s enduring success . WiMax - A marketing worth measuring: WiMax - A marketing worth measuring 3G-Communcation is a good example to explain this . WiMax - A marketing worth measuring: WiMax - A marketing worth measuring Technologies and Business Strategies driving the industry. WiMax - A marketing worth measuring: WiMax - A marketing worth measuring Rule 1: Markets always take longer to develop than expected. It took roughly 50 years for telephones to penetrate 50% of U.S. households. Although cell phones grew at a much faster rate, their 50% market penetration took more than 15 years. Cable television existed as a niche service for decades before being a mass-market success, and broadband is just now at 40% penetration. The reason markets take so long to develop is that countless micro-markets must go through their own product-adoption curves. For example, one of the first groups to see the value in cell phones was Realtors, but not all Realtors rushed out to buy cell phones. A handful of innovators bought first, followed by a larger group of early adopters. A similar process happened with other professions. When prices came down, the service crossed over to micro-markets in the consumer arena. WiMax - A marketing worth measuring: WiMax - A marketing worth measuring Rule 2: Applications create value, not technology. Technology companies get excited about technology, but customers are not clamoring for 100 Mb/s throughput, EV-DO or even IPTV. Markets grow as the value of applications that technology enables becomes more obvious. Can you identify the value you are creating for the micro-markets that will be your innovators and early adopters? At this year's Supercomm, I asked numerous vendors selling IPTV-related solutions to explain what they offered that an upgraded cable platform did not. The only answer I got was the ability to offer caller ID on the television screen. Somehow I doubt this will lead to rapid mass adoption. WiMax - A marketing worth measuring: WiMax - A marketing worth measuring Rule 3: Early micro-markets determine future success. Much attention has been directed at the idea of market tipping points, an almost magical threshold that marks rapid market adoption. This is an illusion. Market success occurs by companies winning a succession of battles, creating a value proposition for groups of influential customers. Sometimes this is done by luck with a company not understanding the value it creates for customers. But if success is to be a repeatable process, a company must understand early micro-markets and how to replicate and accelerate the value proposition to other micro-markets. WiMax - A marketing worth measuring: WiMax - A marketing worth measuring The major challenge for communications companies making these huge investments is not technological, it's marketing. Success will not be the result of picking the right technology but creating value for a cascading assortment of micro-markets. WiMax - A marketing worth measuring: WiMax - A marketing worth measuring WiMax, easily referred to as first and second generation WiMax. The first generation of certified products will hit the market towards the end of 2005. Entities will use these products to fill in cable and DSL gaps, serve the small and medium-sized business sector with T-1 and higher services, and for wireless backhaul. Filling in cable and DSL gaps represents a limited market opportunity in developed countries, but it will be critical in emerging regions such as Latin America, Eastern Europe and parts of Asia where tele-communication infrastructure is limited or outdated. WiMax - A marketing worth measuring: WiMax - A marketing worth measuring But the real excitement around WiMax has absolutely nothing to do with the fixed version of the technology. Large-scale equipment and silicon makers are banking on mobile WiMax to make their money . Since the broadband and mobile markets are moving targets, each shifting from the support of basic service sets to enhanced multimedia applications. Timing, pricing, and scale will be critical to WiMax success, and vendors must prove that WiMax can deliver much more than basic broadband . WiMax - A marketing worth measuring: WiMax - A marketing worth measuring WiMax - A marketing worth measuring: WiMax - A marketing worth measuring WiMax - A marketing worth measuring: WiMax - A marketing worth measuring WiMax - A marketing worth measuring: WiMax - A marketing worth measuring Challenges of WiMAX: Challenges of WiMAX Spectrum separated spectrum Existed tech 3G Wi-Fi spectrum: spectrum 2.3 GHz, 2.5 GHz, 3.4 GHz, 3.6 GHz, 5.4 GHz, 5.8 GHz and possibly others such as 700 MHz and 900 MHz Spectrum: Spectrum 2.5GHz: The band was set aside as an expansion band for 3G in Europe and is due to be allocated across the continent by 2008. used in some Latin American countries, including Mexico and Brazil as well as some Asian countries and in Lebanon in the Middle East In the U.S., the 2.5 GHz spectrum has mostly been consolidated. 3.5GHz: European countries they can receive public funding in rural areas to deploy broadband, and some of them are choosing to do so wirelessly in the 3.5 GHz band. Latin America and also China In the U.S., 3.5 GHz isn’t available to operators, but the FCC recently opened part of the nearby 3.6 GHz band FCC attached caveats that may slow down use of the band. The spectrum is not available near the coasts because it is used there by the military for radar Spectrum: Spectrum 5 GHz: 5 GHz is getting WiMAX attention. The 5.4 GHz band, unlicensed basis in some parts of Europe,was opened up in the U.S. for unlicensed use but has largely gone unused due to an FCC requirement to avoid radar signals transmitted nearby. the portion around 5.8 GHz widely used in the U.S.—is expected to become more available in Europe, though in some countries the band is used for radar and so will continue to be restricted. 700MHz: Operators in the U.S. and elsewhere also have been examining the700 MHz and 900 MHz bands for potential wireless data use.While the bands are ideal for mobility, the data rates they allow would not be as high as some of the other bands. Existed technology: Existed technology Role in the market Cooperation or Competition? Existed technology: Existed technology Timing 1. Advanced Wi-Fi 2. popularity of 3G Demand of Speed The future of WiMax : The future of WiMax WiMax is expected to help create internet access for millions of users that are in foreign markets that would be too expensive and time consuming for copper wires or coaxial cable. Thus, WiMax may provide the salvation for fixed wireless broadband connectivity in “last mile” situations. Last Mile broadband connectivity is directed to the end users who can’t get broadband connectivity at their location due to the distance between the site and the internet service provider’s central office, or the lack of service equipment in the area. In addition to this advantage, since you can achieve significantly higher data rates with WiMax than you can over the current wires, a richer set of services can be provided, such as video. This will be another reason why the adoption of WiMax could soon bring a huge increase in the number of users with broadbandconnectivity. The future of WiMax: The future of WiMax Although there are legitimate impediment surrounding it ,WiMax will play a critical role in making broadband a more globally ubiquitous service. Wireless/Wireline convergence will become a reality, and multiple broadband and mobile technologies, including WiMax, will be needed for service providers to address dfferent segments of the market .