Godfathering WiMax
3gguru

Intel godfathered WiFi to success. Will it be able to repeat the success story with WiMax in the mobile space, given that 3G has faltered in that space; unlike WiFi , it uses a licensed spectrum that passes the control to the mobile operators, who have their own agenda; Intel has little or no experience with handhelds and 802.16e is still largely untried in the market place.

3gguru

The success of technology is not only dependent upon how good it is but also on its promoters. Traditionally, ITU had promoted the newer networking technologies that without a wink were accepted by the operators. The scenario, however, has been changing with the industry deregulation and it is now literally open for all, however, much depends upon the clout one carries. Intel took over the role of a self acclaimed champion of IEEE 802.11b&g and made it the de facto industry standard for local wireless networking.  What drove its mass acceptance was “convenience”, contributed through

  1. Use of  unlicensed frequencies

  2. Network readiness of laptops

The challenge to Intel now is to repeat this success with WiMax. Unlike WiFi, the situation regards to WiMax is much more complex, with certain factors not in complete control of Intel

  1. WiMAX does not operate a collision detection procedure to deal with interfering networks as it is primarily designed to work in a allocated spectrum (licensed bands) which puts service provisioning and management in the domain of the mobile operators.

  2. In the unlicensed 5.8 GHz band it is hardly ideal in terms of coverage or wall penetration.

  3. Allocation of frequency bands in the gigahertz range (beyond that used by 3G) causes the cell size to be small – increasing the likelihood of WiMax becoming a more urban than a geographical solution.

  4. Competition from 3G, an ITU promoted standard in data applications.

  5. 3G operators are using voice to payoff the infrastructure cost and geographically expand the network coverage.

Over the last four to five years Intel has leveraged its global reach to influence operators to adopt WiMax and has had considerable success to get operators and WiMax technology vendors to jointly conduct trials. It has also funded WiMax companies through its investment arm to speed up the technology development and its delivery in the market place However, there is little Intel can do about the cell size but the silver lining is that the sector bandwidths become larger as the user gets closer to the base station.

Knowing Intel’s strengths, it is best positioned to help operators to effectively address the “remote Internet” market with WiMax ready PCs or laptops. This is remotely connecting to Internet from places, where one would have liked to use fixed broadband but are unable to use for what so ever reasons. Though 802.16e is better positioned to address this market than 801.16d, but the latter has been through the normal teething issues and is now fast maturing. However, 802.16e is largely untried except in Korea, where it is currently experiencing the growing pains. The fixed broadband alternative market is much bigger than that addressed by 3G/2.5G data applications and is likely to stay bigger for years to come. The good thing about this market is that it is ready and yelling for “takers”.

WiMax operators may be tempted to be a part of the mobile “on the go” market supposedly addressed by 3G/2.5G. I guess this will be like inviting your own “Waterloo”, given that the 3G/2.5G operators are currently struggling for the lack of uptake and not for the lack of bandwidth or matured technology and also no body knows how to get the consumers adopt and integrate the offered solutions into their lifestyles. The success in this space seems a long way off.