WiMax

Technology
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CONTENTS
1. WiMax Technology.......................................................................................................2
1.1 What is WiMax......................................................................................................2
1.2 Who are current users of WiMax...........................................................................2
1.! What is the future of WiMax.................................................................................!
2. "nalysis.........................................................................................................................#
2.1 P$ST "nalysis.........................................................................................................#
2.1.1 Politics...............................................................................................................#
2.1.2 $conomic...........................................................................................................#
2.1.! Social.................................................................................................................%
2.1.# Technology........................................................................................................&
2.2 SW'T "nalysis.......................................................................................................(
2.2.1 Strength.............................................................................................................(
2.2.2 Wea)ness...........................................................................................................*
2. 2.! '++ortunity....................................................................................................10
2.2.# Threat..............................................................................................................10
!. ,ecommendation and -m+lementation.......................................................................12
!.1 Targeting................................................................................................................12
!.2 Positioning.............................................................................................................1%
!.! -m+lementing.........................................................................................................1&
"++endix 1: .ommunication S+eed and "rea .o/erage...............................................10
"++endix 2: 1orecast demand for note2oo) com+uters.................................................1(
"++endix !: WiMax in the technological lifecycle........................................................1*
"++endix #: ,elation 3ith other 3ireless technologies.................................................20
"++endix %: Mid4time WiMax 5ision............................................................................21
"++endix &: Penetration ,ate /s. 6DP +er .a+ite.........................................................22
"++endix 0: Target "rea 78r2an or ,ural9.....................................................................2!
"++endix (: 5alue of Technology..................................................................................2#
"++endix *: ,is) of De/aluation...................................................................................2%
"++endix 10: WiMax Ser/ice Pro/ider 4 NextWe2.......................................................2&

1
1. WiMax Technology
1.1 What is WiMax?
WiMax or the (02.1& standard is the acronym for the World -ntero+era2ility for
Micro3a/e "ccess: and is considered the e/olution of the 3ireless 2road2and: the +roduct
is similar to Wi41i 2ut 3ith the ca+a2ility to sending and recei/ing large amount of +ac)ed
data through the use of 2ase stations: similar to those used in the cellular net3or)s. WiMax
+ro/ides data4communications u+ to %0)m 7!1 miles9 at a s+eed of 00M2it;s: enough
2and3idth to simultaneously su++ort more than &0 2usinesses 3ith T14ty+e
1
2and3idth and
3ell o/er a 1000 homes at 1M2it;s or DS<4le/el connecti/ity.
6enerally s+ea)ing: communication s+eed is in/ersely +ro+ortional to the area
co/erage. -t is sho3n as "++endix 1: 8W= technology can +ro/ide /ery fast access s+eed
from 100M2+s to 162+s: 2ut its co/erage distance is limited only from 1m to 10m. !6
technology su++orts 3ide area co/erage and mo2ile usage: ho3e/er the access s+eed is
relati/ely slo3 com+ared to other technologies. WiMax is a technology 2et3een 8W= and
!6. WiMax can su++ort 3ider area co/erage than 8W= and the higher s+eed access than
!6. WiMax has nature technological ad/antage than others in the mar)et usage of %M2+s
to 100M2+s accessing s+eed and 100m4!0)m co/erage distance. Therefore: WiMax is an
efficient and economical technology to achie/e 2road2and -nternet access.
1.2 Who are current users of WiMax?
The main use of the WiMax technology is to offer an inex+ensi/e 2road2and 3ireless
access to all the masses from entire sections of metro+olitan areas: to remote locales across
the 3orld: es+ecially in +laces 3here +eo+le cannot afford to get a 2road2and. The
installation cost of WiMax is 2y far less ex+ensi/e than today>s 3ire solution. "s an
1
2
exam+le =ritish Telecom is testing WiMax in -reland and Scotland for use in +arsley
+o+ulated areas 3here 3ire net3or)s are difficult to install? another exam+le: Millicom
"rgentina is also testing WiMax 3ith the hel+ of "l/arion and -ntel for su2ur2an and rural
areas. The com+any has o/er &0 2ase stations throughout "rgentina? the first +hase 3ill 2e
tested in t3o 2ase stations: if the test succeeds: the com+any 3ill install and re+lace more
than 100 WiMax 2ase stations to de+loy the technology in rural and highly +o+ulated areas.
1.3 What is the future of WiMax?
WiMax is a ne3 technology that has @ust 2een introduced in 200%. WiMax 3as 2orn
to resol/e the 3ea)nesses of Wi41i net3or) such as lo3 range: inadeAuate 2and3idth and
encry+tion.
"lthough this technology is still young: it is ex+ected that the su2scri2ers 3ill gro3
from (0:000 2y the end of 200% to !.( million 2y the end of 200*. "ccording to a recent
re+ort 2y -n4Strat 2y 200*: South Borea: due to its so+histicated a++lication industry: 3ill
contri2ute to the 3orld WiMax mar)et 2y #0C follo3ed 2y .hina 3ith !#C and Da+an 2y
10C. The re+ort +redicts that the total WiMax mar)et in "sia 3ill reach 8SE1:*((.2
millions in 200*
2
.
WiMax technology has 2rought many leading eAui+ment manufacturers and
com+onent su++liers into this mar)et. 1or instance: "lcatel and -ntel ha/e im+lemented a
dedicated WiMax +rogram: No)ia is loo)ing to the technology as a com+lement of its third
generation 7!69 handsets: Mo2ile carriers see a o++ortunity in WiMax to o/ercome their
!6 saturation net3or) and facilitate the transition to the #6 system and telecom com+anies
are analysing the +ossi2ility to de+loy WiMax to su2ur2an areas that lac) of DS<.
2
!
2. Analysis
2.1 PEST Analysis
2.1.1 Politics
FThe WiMax 1orumG: a non4+rofit organiHation that +romotes and certifies the
com+ati2ility and inter+reta2ility of 2road2and access: 3as esta2lished in 2001. =y 200%
the WiMax 1orum has had more than !00 mem2ers: including leading eAui+ment
manufacturers: ser/ice +ro/iders and systems integrators
!
. The WiMax 1orum 3ill conduct
testing and la2el com+liant +roducts 3ith the FWiMax 1orum .ertifiedG. This 3ill
guarantee that the +roducts ha/e 2een inde+endently /erified to conform to the standard
and 2e intero+era2le 3ith other /endor>s eAui+ment: ex+ecting to +romote the WiMax
technology in 3ireless mar)et.
2.1.2 Economic
Growth Potential of Bi Mar!ets "#n$ia% &hina an$ 'ussia(
-n -ndia: there are 1.0( 2illion +eo+le
#
: 3hich is the 3orld largest democracy: of 3hich
200 million +eo+le 2elongs to the middle class: 3hich is the +otential mar)et for high
technology +roducts such as mo2ile P. and mo2ile +hone. The -ndian 6o/ernment has +ut
the 2road2and and -nternet gro3th as a +riority and set a goal of com+uter access for 0%
million +eo+le and the -nternet access for #% million +eo+le 2y 2010. .urrently only 1%
million +eo+le ha/e access to a com+uter
%
. .hina has the 3orld largest landline and mo2ile
telecom net3or)s: "s of Dune 200%: !&! million mo2ile +hone su2scri2ers: !!0 million
fixed4line tele+hone su2scri2ers 72(C of +o+ulation9: and !1.0 million 2road2and
su2scri2ers 72.&C of +o+ulation9
&
. ,ussia>s telecom industry 3ill in/est 8S E !! 2illion in
3
#
%
&
#
the next ten years. Mo2ile +enetration is almost t3ice than that of fixed4line tele+hony: and
gro3ing at 10#C annually
0
.
Stanation of 3G Mar!et Worl$wi$e
Mid 2002: it 3as clear that the transition to !6 net3or)s 3as going to 2e e/en more
com+lex and ris)y than originally antici+ated. The initial o+timism o/er !6 had s+urred
o+erators to s+end 2illions of euros on o+erating licenses from go/ernment auctions.
Io3e/er: this s+ending left the com+anies so dee+ly in de2t that they lost in/estor su++ort
to roll out !6 net3or)s at the +ace they had originally intended. This caused the stagnation
of !6 cellular +hone technology: not only in $uro+e 2ut also in Da+an: the 8S: and all o/er
the 3orld.
2.1.3 Social
&hane in )ifestyle
The de/elo+ment and +ro+agation of cellular /oice systems o/er the +ast se/eral years
has ex+osed the ca+a2ilities and the usefulness of 3ireless communications and: thus: has
+a/ed the 3ay for 3ide4area 3ireless data a++lications and mo2ile -nternet. The demand
for mo2ile -nternet is ex+eriencing a significant increase and is turning into a
communications re/olution that can change the lifestyle +attern in the near future. The
3orld3ide 3ireless 2road2and audience of fi/e million in 200% is ex+ected to gro3 2y #0
+ercent yearly through 2010
(
.
*e+an$ for Mo,ile -sae for .ote ,oo! P& -sers
0
(
%
.ell +hones ena2led +eo+le to communicate all o/er the +lace. Io3e/er: there is still
a s+ace limitation for note2oo) P. users. They usually use P. inside the rooms and
2uildings to do3nload music: 3atching /ideo streaming ser/ice: and +laying online games
thorough the -nternet. To ma)e these users comforta2le: it is reAuired to +ro/ide high
s+eed: high Auality and lo3 cost ser/ices at any time at any +lace. The demand for high4
s+eed mo2ile data communication ser/ices: +articularly in the note2oo) P. mar)et: is the
next 2ig gro3th area for 3ireless ser/ice +ro/iders 7See "++endix 29.
Potential in *e/elo0in &ountries
-n se/eral regions of the 3orld: co++er 3iring to homes or 2usinesses doesn>t exist. -n
these areas: a fixed 3ireless offering that is 2ased on an o+en standard ma)es more
economic sense than de+loying co++er 3iring that can easily 2e ri++ed out and resold on
the o+en mar)et and that gi/es no economic return due to the lo3 concentration of users.
The total mar)et has so far 2een relati/ely small: 2ut the technologies 3ould +ro/ide a
much needed ser/ice in those countries. 'n the other hand: in de/elo+ed countries:
consumers 3ho already utiliHe !6 and Wi41i ser/ices 3ill ha/e less incenti/e to ado+t
WiMax. Mar)et o++ortunity is not 2eing created 2ut rather 2eing redefined 2y WiMax.
2.1.4 Technology
Pre+ature Technoloy
WiMax is still in the early stage of ado+tion and o/erall /alue 7See "++endix !9: the
technology is no3 2eing tested 2y =ritish Telecom in -reland and Scotland: and Millicom
"rgentina 3ith "l/arion and -ntel
*
. Most o+erators are +lanning to conduct field trials later
in 200% or 200& 3ith a focus only on fixed 3ireless ser/ices. 1or +orta2le and mo2ile uses:
it is too +remature to seriously e/aluate WiMax at this stage. -n addition: WiMax standard
3ill necessarily ha/e a smaller co/erage and lo3er s+eed: since +orta2le de/ices li)e
*
&
note2oo) com+uters generally cannot afford the 2attery 2udget for high4+o3er transmitter
out+ut.
.eati/e 1actors of Ac2uisition3#nstallation &osts
WiMax installation cost might not 2ecome smaller than 3e ex+ected. 1or exam+le:
acAuiring a site in North "merica is easily reaching E2%:000
10
: +lus ongoing lease costs.
"lso: considering that the o+erators in $uro+e are no3 struggling to find enough sites for
their 8MT" net3or)s: it 3ould 2e more difficult than 3e ex+ect to allocate the WiMax
antennas efficiently. -n addition: using relati/ely high radio freAuency is a disad/antage
2ecause effecti/e cell radius 2ecomes smaller: 3hich reAuires a larger num2er of antennas.
Moreo/er: a 3ide /ariety of s+ectrum choices increase the costs of +roducing multi42and
de/ices or chi+sets. "ll of these factors 3ill result in the increase of installation costs
3hich ma)e WiMax technology less attracti/e.
'elation with 4ther Technoloy
Since WiMax has not fully addressed the ser/ice layer: it is not clear 3hether WiMax
com+lements !6 3ireless ser/ice and com+ete 3ith already inex+ensi/e Wi41i ser/ice or
2oth com+lements and;or com+etes 3ith traditional 3ireless 2road2and ser/ices. -n
addition: the other forums: such as !6PP 3ill see) future re/isions of the !6 technology
standard to im+ro/e the efficiency: +erformance or cost effecti/eness: and ex+and the
technology>s domain of a++lica2ility in the 3ireless mar)et. 1or exam+le: !6 technology
is transitioning to an all4-P core at 3hich +oint it 3ill greatly reduce its o3n cost structure
and achie/e higher scala2ility than today. These mo/ements 3ould @eo+ardiHe the
coexistence of WiMax and other 3ireless technologies 7See "++endix #9.
5uality of ser/ice
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Some o+erators might e/en consider using WiMax in unlicensed s+ectrum for their
2usinesses: 2ut this scenario is unli)ely in most instances since the +otential for
interference 3ould exist and this interference could detrimentally im+act the Auality of the
o/erall net3or).
2.2 SW4T Analysis
2.2.1 Strength
)oner $istance
"s a metro+olitan area net3or) 7M"N9 technology 3ith a range of u+ !0 miles of
linear ser/ice and a +ea) data rate of 00 M2+s: WiMax can 2e de+loyed to +ro/ide last4mile
3ireless 2road2and access on a +oint to multi4+oint 2asis in rural and underser/ed areas. -t
ser/es as an im+ro/ement on +re/ious fixed 3ireless access technologies such as <ocal
Multi+oint Distri2ution Ser/ices 7<MDS9: 3hich acts in a limited s+ectrum 2and and co/er
shorter distances. 'n the other hand: 2ecause it can 2e used o/er relati/ely long distances:
it is an effecti/e last mile solution for deli/ering 2road2and to the home: and for deli/ering
3ireless ser/ices to +laces li)e air+orts: college cam+uses: and small communities.
6ih7,an$wi$th ca0a,ility an$ cost effecti/e
WiMax has the ad/antage of ena2ling o+erators to offer 2road2and ser/ices 3ithout
use of the incum2ent>s local loo+ infrastructure: ensuring greater control o/er net3or)
o+eration. They can also +ro/ide relia2le /oice: data and /ideo ser/ices across 3ide
o+erating en/ironments. -t +ro/ides a shared data rate of u+ to 100M2+s: 3hich is enough
to ser/ice u+ to a thousand homes 3ith high4s+eed access.
Easy to i+0le+ent
(
=ecause WiMax does not de+end on ca2les to connect each end+oint: de+loying
WiMax to an entire high4rise: community or cam+us can 2e done in a matter of a cou+le
days: sa/ing significant amounts of man+o3er.
2.2.2 Weaness
)atency 0ro,le+s
<atency +ro2lem means that WiMax 3ill 2e an ex+ensi/e medium to de+loy
com+ared 3ith the existing DS< and ca2le net3or) installed 2y carriers. Therefore: WiMax
is li)ely to remain as a niche in the consumer domain: catering for households that are out
of reach of DS< and ca2le: as 3ell as those 3ith techno+hile occu+ants.
6ih su,scri0tion costs
The high su2scri+tion costs: the relati/e immaturity of technologies and the
reAuirement for high to3ers 7causing concerns from community grou+s9 suggest these
ser/ices are unli)ely to com+ete directly 3ith DS< and ca2le in the medium term.
#++aturity of technoloies
The mo2ile WiMax community is faced technical and com+etiti/e challenges since the
(02.1&e
11
s+ecification is not yet finished. .ertified mo2ile WiMax eAui+ment 3ill arri/e
during or after 2000 and mo2ile carriers ty+ically test ne3 technologies from 12 months to
1( months 2efore im+lementing them throughout the net3or). 1or a com+lete timing of
WiMax mid4term /ision see "++endix %.
Mo,ile uncertainty " 'oa+in 0ro,le+ (
WiMax has the roaming +ro2lem. -t leads to consuming more 2attery energy.
Therefore: 2attery ca+acity 3ill 2e other +rereAuisites for the mass u+ta)e of WiMax.
11
$xtension of the WiMax technologies for fixed 3ireless ser/ices using 2 to & 6hH
*
-ntel>s =attery <ife '+timiHation Program is 3or)ing to3ards a goal of eight4hour la+to+
2attery life 2y 2010 to su++ort full mo2ility for 2road2and 3ireless. Wi41i has the same
+ro2lem: 2ut !6 doesn>t ha/e.
2. 2.3 O!!ort"nity
Growin +ar!et
The 3orld3ide 3ireless 2road2and audience of fi/e million in 200% is ex+ected to
gro3 2y #0 +ercent yearly through 2010 and the =road2and 3ireless mar)et is +redicted to
+ass the E2 2illion mar) in 2010: WiMax /endors 3ill 2e +erfectly +oised to ta)e ad/antage
of this ro2ust mar)et.
.ee$s for uni/ersal stan$ar$s
Some research indicates that a ti++ing +oint that 3ill dri/e increased unit demand is
li)ely to occur due to effects of standardiHation 3hich 3ill hel+ dri/e the +rice eAuation:
stimulate mar)et dri/en demand: and +ro/ide increased su++ly sta2ility and com+ati2ility
across similar eAui+ment +rofiles. Therefore: WiMax could 2enefit ser/ice +ro/iders
through its character of intero+era2ility: ease of installation and mo2ility.
2.2.4 Threat
S0ectru+ an$ reulation constrains
WiMax needs lo3er 2ands to economically de+loy net3or)s that 3ill +ro/ide full
mo2ility. Iigher than !6IH 2ands are not suita2le for mo2ile net3or)s as +ro+er co/erage
3ould reAuire too many 2ase stations com+ared to su2 16IH 2ands. The WiMax regulatory
grou+ is 3or)ing to3ards influencing the regulatory 2odies 3orld3ide to o+en u+ 2ands for
WiMax mo2ility. Those 2ands could include the 000MIH and #%0MIH. The regulatory
10
3or)ing grou+ is also 3or)ing to create an en/ironment to su++ort e/entual glo2al roaming
for nomadic J mo2ile WiMax de/ices
Security consi$erations
Security ris)s remain 3ithin the signalling ser/ers themsel/es 3ith hac)ers em+loying
one of se/eral methods to o2tain unauthoriHed access. '$Ms must address each of these
methods indi/idually and as a 3hole 3hen de/elo+ing effecti/e security infrastructure that
can th3art hac)ers.
Potential su,stitutes
Ne3 technology could )ill WiMax. 1or exam+le: Tech3orld re+orts that a 1lorida4
2ased start4u+: x6: has de/elo+ed a technology thatKs a 1000 times more efficient than
WiMax and 3hich could: in theory: lead to 3ireless <"Ns 2eing +o3ered 2y 3atch
2atteries. -t is still in early de/elo+ment: 2ut this technology could allo3 anyone to set u+
as an -SP.
12
Therefore: there exist ne3 technologies that could re+lace WiMax 2efore it
e/en gets off the ground.
12
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3. #ecommen$ation an$ %m!lementation
=ased on the analyses a2o/e: 3e 3ould li)e to recommend on ho3 to choose an
a++ro+riate target mar)et for WiMax and ho3 to successfully +osition and im+lement
WiMax in this mar)et.
3.1 Taretin
&e'elo!ing Co"ntry 's. &e'elo!e$ Co"ntry
To identify the targeted countries for WiMax de+loyment: a correlation analysis has
2een done 2et3een each country>s 2road2and +enetration and its national income le/el
76DP +er .a+ita9. The finding is 2road2and +enetration is +ositi/ely correlated to national
income le/el. -n other 3ords the higher the income le/el: the higher the 2road2and
+enetration. Io3e/er in some counties li)e Borea: the +enetration is extremely high
com+ared to its income le/el. These countries are not a good choice for WiMax due to the
existence of their 3ell esta2lished 2road2and infrastructure. 'n the contrary to the Borea
case: some high income le/el countries ha/e relati/ely lo3 2road2and +enetration: such as
6ermany. -ts 2road2and +enetration is only 10C: 3hich ma)es itself a +erfect mar)et for
WiMax. -n conclusion: WiMax technology should 2e focused on countries 3ith lo3
2road2and +enetration 7See "++endix &9.
(r)an Area 's. #"ral Area
Demogra+hics +lay a )ey role in determining the 2usiness feasi2ility of any telecom
net3or). To disco/er 3hich segment is the most attracted to WiMax: an assessment has
2een conducted on the 2asis of # main criteria: .ustomer Demand: Technology $ligi2ility:
Mar)et .om+etition: and Profita2ility. 'ur recommendation as a result is WiMax should
go for rural area 7"++endix 09.

12
C"stomer $eman$ *+o (r)an,
8-r,an Area9
<arge .ustomer =ase: 8r2an area has a 2igger +o+ulation as such more +otential WiMax
customers. So ser/ice +ro/iders 3ill ha/e a higher re/enue +otential.
Iigh Demand: There is a significant need for 3ireless -nternet access for 2usiness reasons
in office high rises and other +u2lic +laces. The fast +aced life style in ur2an area ma)es
+eo+le more li)ely to need relia2le high s+eed 3ireless access ser/ice at e/ery corner.
8'ural Area9
Small Po+ulation: -t is s+arsely +o+ulated 3ith only a small num2er of 2usinesses. Neither
its small num2er of 2usinesses nor its more laid 2ac) life style 3ill generate a strong
demand for 3ireless high s+eed -nternet.
Pent4u+ Demand: The existing +oor co++er tele+hone line cannot satisfy customer demand
for good Auality ser/ice and high s+eed access. There might 2e some +ent4u+ demand for
high s+eed -nternet access 2ecause of the lac) of 2road2and access infrastructure.
Technology Eligi)ility *+o #"ral,
8-r,an Area9
-nterference: -n ur2an area: high rises and large 2uildings 3ill create a higher le/el of
interference. Since WiMax use Auite high freAuency 2and: it is relati/ely easy to 2e
interfered.
.ross .onnect: There are a /ariety of signals from T5;radio stations e/en automatic doors:
flying in the ur2an area. Therefore: unless go/ernment regulates the s+ecified s+ectrum for
WiMax: the 3ireless 2road2and signal 3ill get crossed: undermining the Auality of ser/ice.
8'ural Area9
<ong Distance: -n rural area customers> residence is far from central offices. $xisting
3ired or 3ireless technologies ha/e inherent limitations either in +erformance or in
1!
ca+acity. 1or exam+le: "DS< has the & )m maximum distance on co++er 3ire to deli/er
sufficient +erformance. -t ma)es economically not /ia2le to o/ercome these inherent
limitations on the existing technologies to +ro/ide Auality 3ireless 2road2and ser/ices in
rural area.
<o3 -nterference: Since most of rural areas are relati/e flat: the signals from a transmitter
can go straight to a customer>s recei/er 3ithout any interference. =ut the 2ad 3eather li)e
fog or thunder storm is a +otential cause of interference.
Possi2ility of 8nlicensed = and: -n rural area: radio s+ectrum for WiMax is not regulated?
thus it is relati/ely easy to a++ly the technology. $/en in some cases: it is +ossi2le to use
unlicensed s+ectrum.
Com!etition *+o #"ral,
8-r,an Area9
Strong com+etition: Due to higher density of +otential customers: more ser/ice +ro/iders
3ill enter into this mar)et. So the ur2an mar)et is more com+etiti/e. "s a result: it 3ill 2e
incurred more mar)eting and sales ex+enses to secure mar)et share. The com+etition is
+rimarily dri/en 2y the num2er of +layers and a/aila2ility of alternati/e technologies. -n
some areas: high s+eed 2road2and co/erage almost reaches the maximum 7e.g. Borea
0!C9? these mar)ets started to 2e saturated.
8'ural Area9
1e3 com+etitors: There are not many ser/ice +ro/iders in rural areas: e/en though some
areas ha/e a 2ig +otential for 2road2and 3ireless access and WiMax ser/ices.
6o/ernment Su++ort: -n rural areas: go/ernments at all le/els are +romoting 3ireless
2road2and through continuing freAuency allocation and su2sidies to ma)e the rural
2usiness case more attracti/e in order to im+ro/e the +roducti/ity and information
technology in rural area.
1#
Pro-ita)ility *+o #"ral,
8-r,an Area9
Iigh S3itching .ost: The ser/ice +ro/iders ha/e made huge in/estments in their existing
technologies. =efore s3itching to WiMax: they ha/e to ma)e sure if they ha/e recou+ed
their initial in/estment and maximiHed their return. So there 3ill 2e a strong resistance for
existing +ro/iders to s3itch to WiMax.
8'ural Area9
<o3 .ost <o3 ,eturn: =ecause of the significant less num2er of interfering o2@ects in rural
area: the in/estment in eAui+ment and the set4u+ cost are much lo3er. -n addition: ser/ice
+ro/iders can 2uild infrastructure from scratch 3ithout any s3itching cost. $/en though the
re/enue stream in rural area is lo3: its +rofita2ility is 2etter than ur2an area in the short run
according to the simulation results from the WiMax 1orum due to the fact customers /alue
of a net3or) is linearly related to the sAuared num2er of customers
3.2 Positionin
$/en though WiMax>s inno/ation offers significant im+ro/ements in terms of s+eed
and area co/erage: it 3ould fail to re+lace existing technologies that are already 3idely
ado+ted in the short run: such as !6 and Wi41i. "s sho3n in "++endix (: 3e found out
that the technology>s stand4alone utility is not enough to exceed the total /alue of the
incum2ent standard 7e.g. Wi41i>s technology L installed 2aseL com+lementary goods9.
"ssuming WiMax>s installed 2ase and com+lementary goods are com+ati2le 3ith that of
the existing Wi41i: the WiMax technology may offer greater o/erall /alue to users than Wi4
1i 2ut smaller than that of !6. 1rom this fact: 3e suggest that WiMax enter into the fixed
3ireless mar)et 7Niche9 at this stage. 'ne thing 3e ha/e to +ay attention to is that the
WiMax>s +ercei/ed /alue may 2e greater than actual /alue 2ecause of the too much
1%
ex+ectation and hea/y +romotion 7See "++endix *9: causing WiMax technology 2e
o/er/alued.
3.3 #+0le+entin
The o+timal timing of entry is determined 2y se/eral ma@or factors: 719 the
ad/antage margin of the ne3 inno/ation: 729 customer ex+ectations: 7!9 the threat of
com+etiti/e entry: 7#9 the increase of +rofita2ility. -n terms of the ad/antage of inno/ation:
WiMax>s technology is almost ready for fixed 3ireless usage and 2etter than Wi41i at this
stage? thus it 3ould 2e 2etter to enter into the mar)et as soon as +ossi2le. -n terms of the
customer ex+ectation: o/erall ex+ectation seems high enough for the 3ide /ariety of
3ireless usage: such as 2usiness: residence: a++liance and car: etc. So there 3ill 2e an
enough customer 2ase in this niche mar)et. -n terms of the com+etition: the im+ro/ement
of Wi41i;!6 technology seems to 2e not ready 2y 2010: so no3 is a good timing for
WiMax to enter into the mar)et. -n terms of the +rofita2ility: the early mar)et entry can
ca+ture scarce resource such as )ey customers: )ey locations: distri2ution channel and
relationshi+ 3ith su++liers. Targeting the 2usiness users can 2e one of the good solutions
2ecause they ha/e a /ery high ",P8 7"/erage ,e/enue +er 8ser9. " real exam+le 7See
"++endix 109 sho3s small +ro/iders can le/erage WiMax>s com+etiti/e ad/antages in the
mar)et.
We recommend that the 2ig ser/ice +ro/iders can use WiMax as a su++lementary
technology to +enetrate rural mar)et. To small ser/ice +ro/iders 3hich could not afford
!6>s high license and eAui+ment costs: WiMax is a +o3erful technology for them to
com+ete 3ith esta2lished ser/ice +ro/iders and gain niche mar)et share 2oth in ur2an and
rural areas.
1&
A!!en$ix 1. Comm"nication S!ee$ an$ Area Co'erage
10
PAN LAN MAN WAN
1m 10m 100m (up to 50km) (up to 30km)
1Gbps
100Mbps
10Mbps
1Mbps
2.5G
3G
4G
WiMAX WiMAX
Wi-Fi
Blutoot!
"WB
#i$! %p&
Wi'lss PAN
(()))*02.15) (()))*02.11) (()))*02.1+) (3GPP)
N,t G-'.tio-
Wi-Fi
PAN LAN MAN WAN
1m 10m 100m (up to 50km) (up to 30km)
1Gbps
100Mbps
10Mbps
1Mbps
2.5G
3G
4G
WiMAX WiMAX
Wi-Fi
Blutoot!
"WB
#i$! %p&
Wi'lss PAN
(()))*02.15) (()))*02.11) (()))*02.1+) (3GPP)
N,t G-'.tio-
Wi-Fi
A!!en$ix 2. /orecast $eman$ -or note)oo com!"ters
1(
A!!en$ix 3. WiMax in the technological li-ecycle
1*
A!!en$ix 4. #elation 0ith other 0ireless technologies
20
A!!en$ix 1. Mi$2time WiMax 3ision
21
A!!en$ix 4. Penetration #ate 's. +&P !er Ca!ite
22
0%
10%
20%
30%
40%
50%
60%
70%
80%
$0 $10,000 $20,000 $30,000 $40,000 $50,000
GDP/Capta
B
r
o
a
d
b
a
n
d

P
e
n
e
t
r
a
t
i
o
n

R
a
t
e
U
C!ina
"apan
#orea
$ran%e
Ger&an'
U#
Canada
(ta)'
*ai+an
A!!en$ix 5. Target Area *(r)an or #"ral,
2!
Developed, Urban
Developing, Sub
Urban, Rural
Mo' (-t'/'-0
%!o't 1ist.-0
M.-2 Pl.2's
(1%L34.bl33G3WiFi
Goo& /o' Lo-$-t'm
#i$! 4ost #i$! 5tu'-
P'o/it.bilit2
4ustom' 1m.-&
60!-olo$2 )li$ibilit2
4omptitio-
#i$! 1-sit2
Bus2 Li/ %t2l
Lo7 1-sit2
%lo7 Li/ %t2l
Lss (-t'/'-0
Lo-$ 1ist.-0
F7 Pl.2's
(4opp' 7i'
Goo& /o' %!o't-t'm
Lo7 4ost Lo7 5tu'-
Developed, Urban
Developing, Sub
Urban, Rural
Mo' (-t'/'-0
%!o't 1ist.-0
M.-2 Pl.2's
(1%L34.bl33G3WiFi
Goo& /o' Lo-$-t'm
#i$! 4ost #i$! 5tu'-
P'o/it.bilit2
4ustom' 1m.-&
60!-olo$2 )li$ibilit2
4omptitio-
#i$! 1-sit2
Bus2 Li/ %t2l
Lo7 1-sit2
%lo7 Li/ %t2l
Lss (-t'/'-0
Lo-$ 1ist.-0
F7 Pl.2's
(4opp' 7i'
Goo& /o' %!o't-t'm
Lo7 4ost Lo7 5tu'-
A!!en$ix 6. 3al"e o- Technology
2#
60!
"tilit2
60!
"tilit2
60!
"tilit2
(-st.
B.s
(-st.
B.s
(-st.
B.s
4omp.
Goo&s
4omp.
Goo&s
4omp.
Goo&s
WiM., 3G Wi-Fi
8
.
l
u

Fi, M.'kt
(Ni0!)
Wi'lss
(M.ss)
A!!en$ix 7. #is o- &e'al"ation
2%
60!
"tilit2
(-st.
B.s
4omp.
Goo&s
-6oo mu0! ,p0t.tio-
-60!-olo$i0.l limit.tio-
((P9+: B.tt'2: (-t'/'-0)
P'0i9&
60!
"tilit2
(-st.
B.s
4omp.
Goo&s
A0tu.l
5isk o/ &9.lu.tio-
A!!en$ix 18. WiMax Ser'ice Pro'i$er 2 NextWe)
NextWe2: -nc. is a .aliforniaKs largest fixed43ireless -nternet ser/ice +ro/ider for
2usiness: +ro/iding high4s+eed ser/ice to more than 2:000 enter+rise customers. -n 200#:
the com+any 3as named one of the %0 fastest gro3ing =ay "rea com+anies 2y all three
leading 2usiness +u2lications in the -ndustry. NextWe2Ks ser/ice is a/aila2le in o/er
200:000 2usiness locations and more than 10% cities throughout .alifornia. Ty+ically
installed in @ust three to se/en days: NextWe2Ks standard Su+er4T ser/ice is !0 +ercent
faster than a T1 at 00C of the +rice: easily scaling to six times the s+eed of a T1. The
com+any is acti/e in the formation of industry standards: and is a mem2er of the WiMax
1orum and the Wireless .ommunications "ssociation -nternational 7W."9. =ecause
NextWe2 o3ns and maintains its o3n inde+endent telecommunications net3or) and
connects directly to the -nternet 2ac)2one: the com+anyKs ser/ice com+letely 2y+asses
tele+hone and ca2le com+anies: +ro/iding customers 3ith significantly more 2and3idth at
su2stantially lo3er startu+ and monthly costs. The fixed43ireless com+any guarantees its
high4s+eed -nternet ser/ice 3ill 2e u+ and running for its customers in three to se/en
2usiness days: com+ared to 3ee)s or months ty+ically associated 3ith larger 3ire line
carriers .
2&