Value Proposition - Fixed versus mobile Wi-Max
Wi-Max promises to bring wireless broadband connectivity to both fixed and mobile users. However, both technologies are best suited to different market segments and have distinct performance profiles. In India, mobile Wi-Max is a relatively new technology compared to its fixed counterpart. It now needs to be seen how the two technologies will fare against each other and against 3G. tele.net speaks to analysts, vendors and industry associations to assess their views on the business case of the two technologies and their future potential...
What are the pros and cons of using fixed Wi-Max versus mobile Wi-Max? With mobile Wi-Max in the pipeline, what do you think will be the future of fixed Wi-Max in India?
Bharat Bhatia: Wi-Max is based upon the IEEE 802.16e standard that enables "anywhere, anytime" delivery of wireless broadband services. Wi-Max products can accommodate fixed and mobile usage models. The WiMAX Forum expects mobile network deployments to provide up to 15 Mbps of capacity within a typical cell radius of up to 3 km. The Wi-Max technology has already been incorporated in notebook computers and PDAs to deliver high speed mobile internet services.The IEEE ratified the Wi-Max or 802.16e standard in late 2005. It has since emerged as a leading broadband wireless access technology. A large number of operators around the world are moving towards the Wi-Max 802.16e standard for both fixed and mobile deployments. The WiMax 802.16e standard can competently support fixed as well as mobile broadband applications. It is different from the fixed Wi-Max standard 802.16d, as it incorporates support for multiple input, multiple output antenna technology as well as beamforming and advanced antenna systems (AASs), which are all "smart" antenna technologies that significantly improve Wi-Max systems as well as throughput. Many members of the WiMAX Forum have elected to provide 802.16e-based equipment and devices for both fixed and mobile applications. The 802.16e version of Wi-Max is the closest comparable technology to the emerging long term evolution mobile wireless standard. In India too, most operators are contemplating the use of Wi-Max 802.16e for new rollouts under the proposed DoT tender.
Nitin Gupta: Wi-Max is a technology that provides wireless transmission of data. As of end2008, there were 3.9 million fixed and mobile Wi-Max users globally. The top speed for a Wi-Max tower is 70 Mbps, but that will depend on the line of sight and the distance from the tower. It is estimated that India could have 8-10 million WiMax subscribers by end-2012. Though some Indian operators have begun offering Wi-Max services, the industry is awaiting the allocation of broadband wireless access (BWA) spectrum in the 2.3-2.5 GHz band to offer full-fledged services.What fixed Wi-Max does is offer a costeffective and quick-to-deploy alternative to digital subscriber line (DSL). Considering that the mobile subscriber base is much larger than the fixed line base, a larger opportunity lies in mobile Wi-Max. However, till now, the business case for mobility-based voice on Wi-Max remains to be proven globally. The other issue is that not many mobile Wi-Max devices are yet available. Therefore, until the entire ecosystem for mobile Wi-Max evolves, the technology cannot pick up as a service.
P.K. Saji: India has always been a price-conscious market. Hence, Wi-Max operators need tobring in cost efficiency. With the current uncertainties on spectrum allocation, the IEEE 802.16d standard is expected to continue for some more time at least for business users. Once we have more coverage and deployments in India, 802.16e should replace the fixed models. There are manufacturers who provide commercial models to migrate to 802.16e from 802.16d.
Mahesh Uppal: The advantage of Wi-Max is that it is wireless, and providing moderately high bandwidth is relatively easy over the platform. When it was introduced, fixed WiMax was conceived as a wireless alternative to DSL. It is capable of delivering pretty large bandwidths without actually deploying huge infrastructure in the form of digging roads, etc. It is best suited to datacentric applications.
Most large organisations will need the fixed broadband functionality and would prefer to get it on copper or fibre, which has a lot more bandwidth at not much cost. In rural areas, however, that is not the case.
How do the two technologies differ in terms of cost and pricing?
Bharat Bhatia: A key differentiator for Wi-Max is the interoperability of WiMAX Forum-certified equipment, resulting in mass volume economy of scale and assurance for service providers that when buying equipment from more than one company, the technologies are interoperable. The WiMAX Forum has assembled an alliance of major communications and computing firms to drive a common platform for the global deployment of Ipbased broadband wireless services. This offers several advantages:
Lower cost: A standards-based platform for Wi-Max drives down costs, delivering volume economics for equipment.
Wider coverage: The technology behind Wi-Max 802.16e has been optimised to provide excellent non-line-ofsight (NLoS) coverage. NLoS advantages include coverage of wider areas, better predictability of coverage and lower costs as it means fewer base stations and backhaul, simple radio frequency planning, shorter towers and faster installation of customer premises equipment.
Higher capacity: A key advantage of Wi-Max technology is the use of orthogonal frequency division multiplexing over Edge, GPRS and HSPA, to deliver higher bandwidth efficiency and therefore, higher data throughput, with more than 1 Mbps downstream and higher data rates. Adaptive modulation also increases the link reliability for carrier-class operation, and the ability to keep higher order modulation at wider distances extends full capacity over longer distances.
Standard for all usage models (fixed-tomobile): By leveraging the same technology networks, Wi-Max has become the most cost-effective solution for any usage model from fixed-to-mobile.
P.K. Saji: It would be unfair to compare pricings as the two technologies have distinct technical advantages (or disadvantages) and business models, and their primary target segments are also different.
Mahesh Uppal: The two technologies differ considerably in cost and pricing. Fixed is cheaper and the moment you make it mobile, you need a much higher number of base stations which then hurts the economics or makes it a lot less viable.
What is the status of fixed Wi-Max in India with players like BSNL and Tata Communications already offering the service?
Bharat Bhatia Many Indian operators have deployed preWi-Max fixed equipment in the 3.3 GHz spectrum as the frequencies for certified Wi-Max equipment profiles were not available in India.
Bharat Sanchar Nigam Limited (BSNL) was recently authorised the necessary spectrum in the 2.5 GHz band where certified Wi-Max products are available. The company has already ordered equipment based on the 802.16e standard.
Nitin Gupta: These are still early days for Wi-Max.Things will get clear once the BWA auctions take place after the new government takes office. State-owned BSNL is currently in the process of deploying Wi-Max networks in Maharashtra, Gujarat and Andhra Pradesh. It is looking to build a nationwide Wi-Max network. Tata Communications, on its part, is looking to target the small and medium enterprise (SME) and home segments. The initial focus of most operators will be on the fixed Wi-Max market. Only later will the operators look to offer mobile Wi-Max.
P.K. Saji: Aircel and Sify have been the pioneers in Wi-Max technology in India. BSNL aims to connect 74,000 villages through WiMax. Bharti Airtel, Reliance Communications (RCOM) and Tata Communications have licences in the 3.3 GHz range to utilise the opportunities in this domain.
Mahesh Uppal: Wi-Max is a technology under considerable pressure, because mobile broadband options have increased. For example, RCOM has recently started marketing wireless broadband cards. Those are of very high quality and are mobile. Thus, as the bandwidth on mobile broadband increases, the case for fixed Wi-Max worsens, as consumers would opt for a medium that provides faster connectivity on a mobile platform. Hence, mobile Wi-Max and mobile broadband have become very comparable products. What are the potential markets/industry segments for mobile and fixed Wi-Max?
Bharat Bhatia: Wi-Max can provide broadband connectivity anywhere, anytime, for any device and on any network. It increases data speeds for applications including online gaming, streaming video, video conferencing, voice over internet protocol (VOIP) and location-based services.
The technology provides an affordable and efficient broadband network. It is perfectly suited for regional and rural areas as the purchase and installation process of WiMax is faster, simpler and cheaper than other solutions. Its NLoS capability also means that Wi-Max can provide coverage despite the challenges of geography and the limited footprint of wireline.
Nitin Gupta: Fixed Wi-Max will cater to the needs of enterprises (both large and SMEs) and home users. Using Wi-Max, operators can provide broadband services to still-unconnected home users wirelessly. Since it does not involve laying a fresh wireline link to the last mile, it would, in turn, lead to cheaper broadband connectivity. Considering that most large enterprises are already on broadband networks, the focus of service providers will be on tapping SMEs and new enterprises. Mobile WiMax will emerge as an effective tool for people on the move.P.K. Saji: Wi-Max has the potential to provide network access in remote locations.
- It can positively impact telecom penetration rates.
- It is estimated that India will have 13 million Wi-Max subscribers by 2012.
- For SMEs in rural/semi-urban locations, internet connectivity requirements are growing and would be a key driver for Wi-Max deployment.
To what extent do you think will Wi-Max be able to compete with 3G?
Bharat Bhatia: 3G, Wi-Fi and Wi-Max technologies are all capable of broadcasting wireless data at broadband speeds to consumer devices. Each technology has its benefits and challenges, but its ultimate adoption will vary greatly depending upon the application and the customer's needs. In developed regions, for example, Wi-Fi has been deployed as a hotspot and wide-area mesh solution by local governments, colleges and others, while Wi-Max is being set up to be both a fixed wireless and mobile access solution that will complement cellular 3G.
Nitin Gupta: Wi-Max and 3G are complementary technologies serving different markets. While 3G will cater to full mobility voice and data, Wi-Max will cater to fixed or limited mobility. This could change once the business case for mobility-based Wi-Max is proven globally, supported by the development of a significant ecosystem around it. This, however, will take about two years to happen. Till then, it is unlikely that they will compete with each other.
P.K. Saji: The technologies should be able to coexist, especially in urban markets where the initial deployments would take place. For remote/rural areas it would depend on the total cost of ownership and penetration. India is a huge market and it is expected to have 11 million Wi-Max users by 2013, growing at a compounded annual growth rate of 80 per cent from 2009. With proper roaming agreements between operators, India could provide enough opportunity for both technologies to coexist.
Mahesh Uppal: As of now, 3G has more going for it because the cost of moving to 3G is exponential. Second, it already supports broadband with mobility. Admittedly, Wi-Max supports higher bandwidth, if fixed. But the segment of people that wants fixed broadband is small and will become smaller as broadband or mobile networks increase. The prospects of WiMax are not as great as they could have been and the technology has in a way lost out since it could not deliver the bandwidths that would have clinched the markets for it.
- Most Viewed
- Most Rated
- Most Shared
- Related Articles
- Prepaid Rules: Fewer takers for Postpaid...
- Mobile Banking: Opportunities and challe...
- Energy Management: A key challenge for t...
- Agenda for Change: Industry identifies t...
- Legal Concerns: Litigation against telec...
- R&D Focus : Need to promote indigenous p...
- Green Telecom: Business case for adoptin...
- Broadband Challenges: Key issues in serv...
- A Suitable Technology - Wi-Max or LTE?
- Tax Turmoil: Impact of the proposed retr...