A Seminar Report

ON

WiMax Technology

Electronics & Communications

WiMax Technology

CONTENTS
1. WiMaxTechnology………………………………………………………………..5
1.1 What is WiMax?................................................................................................5
1.2Microwave………………………. …………………………...……….………6
1.3 Where did the idea of WiMax come from?.......................................................7
1.4 why we require WiMax?...................................................................................8
1.5 WiMax Vs WLAN……………………………………………………………9
1.6 WiMax Vs WiFi……………………………………………………………….9
1.7Who are current users of WiMax?.......................................................................11
1.8 what is future of WiMax?...................................................................................11
1.9 The 802.16a Standard………………………………………………………….12

2. Analysis……………………………………………………………….…………..13
2.1 PEST Analysis………………………………………………………………....13
2.2 SWOT Analysis………………………………………………………………..17

3. Recommendation and Implementation……………………………………………21

3.1 Targeting……………………………………………………………………….21
3.2 Positioning……………………………………………………………………..24
3.3 Implementing…………………………………………………………………..25

Appendix 1: How WiMax Works…………………………………………………..26

Appendix 2: WiMax in the technological lifecycle………………………………….27
Appendix 3: Relation with other wireless technologies……………………………..28
Appendix 4: Mid-time WiMax Vision………………………………………………29
Appendix 5: Target Area (Urban or Rural)………………………………………….30
Appendix 6: Value of Technology…………………………………………………..31
Appendix 7: WiMax Service Provider – NextWeb………………………………….32

4.Application………………………………………………………………………...33

5.Conclusion…………………………………………………………………………34

6.Bibilography………………………………………………………………………35

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Article I. 1. WiMax Technology

Section 1.01 1.1 What is WiMax?

WiMax or the 802.16 standard is the acronym for the World Interoperability for

Microwave Access, and is considered the evolution of the wireless broadband, the

product is similar to Wi-Fi but with the capability to sending and receiving large

amount of packed data through the use of base stations, similar to those used in the

cellular networks. WiMax provides data-communications up to 50km (31 miles) at a

speed of 70Mbit/s, enough bandwidth to simultaneously support more than 60

businesses with T1-type1 bandwidth and well over a 1000 homes at 1Mbit/s or DSL-

level connectivity.

Generally speaking, communication speed is inversely proportional to the area

coverage. It is shown as Appendix 1, UWB technology can provide very fast access

speed from 100Mbps to 1Gbps, but its coverage distance is limited only from 1m to

10m. 3G technology supports wide area coverage and mobile usage, however the

access speed is relatively slow compared to other technologies. WiMax is a

technology between UWB and 3G. WiMax can support wider area coverage than

UWB and the higher speed access than 3G. WiMax has nature technological

advantage than others in the market usage of 5Mbps to 100Mbps accessing speed and

100m-30km coverage distance. Therefore, WiMax is an efficient and economical

technology to achieve broadband Internet access.

Mobile applications based on IEEE 802.16e will be addressed in a future paper.

This technology will be particularly beneficial to many rural areas and other locations

where broadband access is not currently available. The current infrastructure owned

by cable providers provides coverage to only limited areas, and much of it is suited

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only to cable television; upgrades to make it capable of delivering broadband data

service are expensive, and therefore prohibitive in low-density markets.

DSL has the limitation that end-users must be within approximately three miles of the

phone company's central office or a major secondary distribution point called a

Subscriber Loop Carrier. Thus, for many users, particularly those in rural locations,

DSL is not available.

WiMAX has the potential to do to broadband Internet access

what cell phones have done to phone access. In the same way that many people have

given up their "land lines" in favor of cell phones, WiMAX could replace cable and

DSL services, providing universal Internet access just about anywhere you go.

WiMax will also be as painless as WiFi -- turning your computer on will

automatically connect you to the closest available WiMAX antenna WiMAX is the

wireless solution for the next step up in scale, the metropolitan area network (MAN).

A MAN allows areas the size of cities to be connected.

1.2Microwave
The term microwave refers to electromagnetic energy having a frequency higher than

1 gigahertz (billions of cycles per second), corresponding to wavelength shorter than

30 centimeters.

Microwave signals propagate in straight lines and are affected very little by the

troposphere.They are not refracted or reflected by ionized regions in the upper

atmosphere. Microwave beams do not readily diffract around barriers such as hills,

mountains, and large human-made structures. Some attenuation occurs when

microwave energy passes through trees and frame houses. Radio-frequency (RF)

energy at longer wavelengths is affected to a lesser degree by such obstacles.

The microwave band is well suited for wireless transmission of signals having large
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bandwidth . This portion of the RF electromagnetic radiation spectrum encompasses

many thousandsof megahertz. Compare this with the so-called shortwave band that

extends from 3 MHz to 30 MHz, and whose total available bandwidth is only 27

MHz.In communications, a large allowable bandwidth translates into high data speed.

The short wavelengths allow the use of dish antennas having manageable diameters.

These antennas produce high power gain in transmitting applications, and have

excellent sensitivity and directional characteristics for reception of signals.

1.3Where did the idea of WiMAX come from?

Much of the credit for the formation of the WiMAX Forum" and the notion of the

WiMAX initiative must go the founding members of the Forum, which committed

themselves early to the process of creating a collaborative standards body.

Once Intel came aboard it recognized that for the broadband wireless industry (both

fixed and mobile broadband wireless) to gain traction and wide acceptance that both

hardware prices must decline and a consistent operating environment must be

cemented into place.

The key point of launch however, had to begin with the silicon chip manufacturers

whose chip products would form the core of WiMAX technology value and

capability. Intel deserves a great deal of credit for helping drive this process.

Other technology standards for digital subscriber line (DSL) service and the Cable

broadband industry (the DOCSIS standard) have been responsible for driving those

respective technologies to wide acceptance.

WiMAX itself is commonly mentioned in conjunction with the Institute for Electrical

and Electronics Engineers (IEEE) IEEE 802.16 working group, which is tasked with

defining the technological aspects and features that will be incorporated into
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WiMAX.The WiMAX Forum" is a collaborative body geared to ensure compliance

with the IEEE 802.16 standards and certified interoperability between radio vendors.

1.4Why we require WiMax:-

Think about how you access the Internet today. There are basically three different
options:

 Broadband access –

In your home, you have either a DSL or cable modem. At the office, your company

may be using a T1 or a T3 line.


 WiFi access –

In your home, you may have set up a WiFi router that lets you surf the Web while you

lounge on the deck with your laptop. On the road, you can find WiFi hot spots in

restaurants, hotels, coffee shops and libraries.

 Dial-up access – If you are still using dial-up, chances are that either:

Broadband access is not available.

You think that broadband access is too expensive.

The main problems with broadband access are that it is pretty expensive and it doesn't

reach all areas. The main problem with WiFi access is that hot spots are very small, so

coverage is sparse.

What if there was a new technology that solved all of these problems? This new
technology would provide:

 The high speed of broadband service

 Wireless rather than wired access, so it would be a lot less expensive than
cable or DSL and much easier to extend to suburban and rural areas

 Broad coverage like the cell phone network instead of the tiny little hotspots
of WiFi

How the technology of the WiMAX differs from other similar

Technologies:

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1.5 WiMax vs. WLAN

Unlike WLAN, WiMAX provides a media access control (MAC) layer that

uses a grant-request mechanism to authorize the exchange of data. This feature

allows better exploitation of the radio resources, in particular with smart

antennas, and independent management of the traffic of every user. This

simplifies the support of real-time and voice applications. One of the inhibitors

to widespread deployment of WLAN was the poor security feature of the first

releases. WiMAX proposes the full range of security features to ensure

secured data exchange:

- Terminal authentication by exchanging certificates to prevent rogue devices,

- User authentication using the Extensible Authentication Protocol (EAP),

- Data encryption using the Data Encryption Standard (DES) or Advanced Encryption

Standard (AES), both much more robust than the Wireless Equivalent Privacy (WEP)

initially used by WLAN. Furthermore, each service is encrypted with its own security

association and private keys.

1.6 WiMax VS. WiFi

WiMAX operates on the same general principles as WiFi -- it sends data

from one computer to another via radio signals. A computer (either a

desktop or a laptop) equipped with WiMAX would receive data from the

WiMAX transmitting station, probably using encrypted data keys to

prevent unauthorized users from stealing access. The fastest WiFi

connection can transmit up to 54 megabits per second under optimal

conditions. WiMAX should be able to handle up to 70 megabits per

second. Even once that 70 megabits is split up between several dozen

businesses or a few hundred home users, it will provide at least the

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equivalent of cable-modem transfer rates to each user. The biggest

difference isn't speed; it's distance. WiMAX outdistances WiFi by miles.

WiFi's range is about 100 feet (30 m). WiMAX will blanket a radius of 30

miles (50 km) with wireless access. The increased range is due to the

frequencies used and the power of the transmitter. Of course, at that

distance, terrain, weather and large buildings will act to reduce the

maximum range in some circumstances, but the potential is there to cover

huge tracts of land. WiMax is not designed to clash with WiFi, but to

coexist with it. WiMax coverage is measured in square kilometers, while

that of WiFi is measured in square meters. The original WiMax standard

(IEEE 802.16) proposes the usage of 10-66 GHz frequency spectrum for

the WiMax transmission, which is well above the WiFi range (up to 5GHz

maximum). But 802.16a added support for 2-11 GHz frequency also. One

WiMax base station can be accessed by more than 60 users. WiMax can

also provide broadcasting services also. WiMax specifications also

provides much better facilities than WiFi, providing higher bandwidth and

high data security by the use of enhanced encryption schemes. WiMax can

also provide service in both Line Of Sight (LOS) and Non-Line Of Sight

(NLOS) locations, but the range will vary accordingly. WiMax will allow

the interpenetration for broadband service provision of VoIP, video, and

internet access – simultaneously. WiMax can also work with existing

mobile networks. WiMax antennas can "share" a cell tower without

compromising the function of cellular arrays already in place.

1.7 Who are current users of WiMax?

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The main use of the WiMax technology is to offer an inexpensive broadband

wireless access to all the masses from entire sections of metropolitan areas, to remote

locales across the world, especially in places where people cannot afford to get a

broadband. The installation cost of WiMax is by far less expensive than today‟s wire

solution. As an example British Telecom is testing WiMax in Ireland and Scotland for

use in parsley populated areas where wire networks are difficult to install; another

example, Millicom Argentina is also testing WiMax with the help of Alvarion and

Intel for suburban and rural areas. The company has over 60 base stations throughout

Argentina; the first phase will be tested in two base stations, if the test succeeds, the

company will install and replace more than 100 WiMax base stations to deploy the

technology in rural and highly populated areas.

1.8 What is the future of WiMax?

WiMax is a new technology that has just been introduced in 2005. WiMax was

born to resolve the weaknesses of Wi-Fi network such as low range, inadequate

bandwidth and encryption.

Although this technology is still young, it is expected that the subscribers will

grow from 80,000 by the end of 2005 to 3.8 million by the end of 2009. According to

a recent report by In-Strat by 2009, South Korea, due to its sophisticated application

industry, will contribute to the world WiMax market by 40% followed by China with

34% and Japan by 17%. The report predicts that the total WiMax market in Asia will

reach US$1,988.2 millions in 20092.

WiMax technology has brought many leading equipment manufacturers and

component suppliers into this market. For instance, Alcatel and Intel have

implemented a dedicated WiMax program, Nokia is looking to the technology as a

complement of its third generation (3G) handsets, Mobile carriers see a opportunity in

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WiMax to overcome their 3G saturation network and facilitate the transition to the 4G

system and telecom companies are analysing the possibility to deploy WiMax to

suburban areas that lack of DSL.

1.9 The 802.16a Standard

WiMAX – Not just another standard

Broadband wireless access provides more capacity at lower cost than DSL or cable

for extending the fibre networks and supporting multimedia and fast internet

applications in the enterprise or home. But it has been held back by the lack of a

standard, so that solutions have been based on proprietary, single-vendor efforts.

Standardization through the IEEE 802.16 specification raises the potential to:

 Stall wired broadband and make wireless the key platform of the future

 Extend the range of Wi-Fi so that the myth of ubiquitous wireless can become a

reality

 Provide an alternative or complement to 3G

 Provide an economically viable communications infrastructure for developing

countries and mobile blackspot regions in developed nations

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2. Analysis

2.1 PEST Analysis

(a) 2.1.1 Politics

“The WiMax Forum”, a non-profit organization that promotes and certifies the

compatibility and interpretability of broadband access, was established in 2001. By

2005 the WiMax Forum has had more than 300 members, including leading

equipment manufacturers, service providers and systems integrators. The WiMax

Forum will conduct testing and label compliant products with the “WiMax Forum

Certified”. This will guarantee that the products have been independently verified to

conform to the standard and be interoperable with other vendor‟s equipment,

expecting to promote the WiMax technology in wireless market.

(b) 2.1.2 Economic

Growth Potential of Big Markets (India, China and Russia)

In India, there are 1.08 billion people, which is the world largest democracy, of

which 200 million people belongs to the middle class, which is the potential market

for high technology products such as mobile PC and mobile phone. The Indian

Government has put the broadband and Internet growth as a priority and set a goal of

computer access for 75 million people and the Internet access for 45 million people by

2010. Currently only 15 million people have access to a computer. China has the

world largest landline and mobile telecom networks: As of June 2005, 363 million

mobile phone subscribers, 337 million fixed-line telephone subscribers (28% of

population), and 31.7 million broadband subscribers (2.6% of population). Russia‟s

telecom industry will invest US $ 33 billion in the next ten years. Mobile penetration

is almost twice than that of fixed-line telephony, and growing at 104% annually.
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Stagnation of 3G Market Worldwide

Mid 2002, it was clear that the transition to 3G networks was going to be even

more complex and risky than originally anticipated. The initial optimism over 3G had

spurred operators to spend billions of euros on operating licenses from government

auctions. However, this spending left the companies so deeply in debt that they lost

investor support to roll out 3G networks at the pace they had originally intended. This

caused the stagnation of 3G cellular phone technology, not only in Europe but also in

Japan, the US, and all over the world.

(c) 2.1.3 Social

Change in Lifestyle

The development and propagation of cellular voice systems over the past several

years has exposed the capabilities and the usefulness of wireless communications and,

thus, has paved the way for wide-area wireless data applications and mobile Internet.

The demand for mobile Internet is experiencing a significant increase and is turning

into a communications revolution that can change the lifestyle pattern in the near

future. The worldwide wireless broadband audience of five million in 2005 is

expected to grow by 40 percent yearly through 2010.

Demand for Mobile Usage for Notebook PC Users

Cell phones enabled people to communicate all over the place. However, there

is still a space limitation for notebook PC users. They usually use PC inside the

rooms and buildings to download music, watching video streaming service, and

playing online games thorough the Internet. To make these users comfortable, it is

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required to provide high speed, high quality and low cost services at any time at any

place. The demand for high-speed mobile data communication services, particularly

in the notebook PC market, is the next big growth area for wireless service providers

(See Appendix 2).

Potential in Developing Countries

In several regions of the world, copper wiring to homes or businesses doesn‟t

exist. In these areas, a fixed wireless offering that is based on an open standard makes

more economic sense than deploying copper wiring that can easily be ripped out and

resold on the open market and that gives no economic return due to the low

concentration of users. The total market has so far been relatively small, but the

technologies would provide a much needed service in those countries. On the other

hand, in developed countries, consumers who already utilize 3G and Wi-Fi services

will have less incentive to adopt WiMax. Market opportunity is not being created but

rather being redefined by WiMax.

(d) 2.1.4 Technology

Premature Technology

WiMax is still in the early stage of adoption and overall value (See Appendix 3),

the technology is now being tested by British Telecom in Ireland and Scotland, and

Millicom Argentina with Alvarion and Intel. Most operators are planning to conduct

field trials later in 2005 or 2006 with a focus only on fixed wireless services. For

portable and mobile uses, it is too premature to seriously evaluate WiMax at this

stage. In addition, WiMax standard will necessarily have a smaller coverage and

lower speed, since portable devices like notebook computers generally cannot afford

the battery budget for high-power transmitter output.

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Negative Factors of Acquisition/Installation Costs

WiMax installation cost might not become smaller than we expected. For

example, acquiring a site in North America is easily reaching $25,000 plus ongoing

lease costs. Also, considering that the operators in Europe are now struggling to find

enough sites for their UMTA networks, it would be more difficult than we expect to

allocate the WiMax antennas efficiently. In addition, using relatively high radio

frequency is a disadvantage because effective cell radius becomes smaller, which

requires a larger number of antennas. Moreover, a wide variety of spectrum choices

increase the costs of producing multi-band devices or chipsets. All of these factors

will result in the increase of installation costs which make WiMax technology less

attractive.

Relation with Other Technology

Since WiMax has not fully addressed the service layer, it is not clear whether

WiMax complements 3G wireless service and compete with already inexpensive Wi-

Fi service or both complements and/or competes with traditional wireless broadband

services. In addition, the other forums, such as 3GPP will seek future revisions of the

3G technology standard to improve the efficiency, performance or cost effectiveness,

and expand the technology‟s domain of applicability in the wireless market. For

example, 3G technology is transitioning to an all-IP core at which point it will greatly

reduce its own cost structure and achieve higher scalability than today. These

movements would jeopardize the coexistence of WiMax and other wireless

technologies (See Appendix 4).

Quality of service

Some operators might even consider using WiMax in unlicensed spectrum for

their businesses, but this scenario is unlikely in most instances since the potential for
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interference would exist and this interference could detrimentally impact the quality

of the overall network.

2.2 SWOT Analysis

(e) 2.2.1 Strength

Longer distance

As a metropolitan area network (MAN) technology with a range of up 30 miles

of linear service and a peak data rate of 70 Mbps, WiMax can be deployed to provide

last-mile wireless broadband access on a point to multi-point basis in rural and

underserved areas. It serves as an improvement on previous fixed wireless access

technologies such as Local Multipoint Distribution Services (LMDS), which acts in a

limited spectrum band and cover shorter distances. On the other hand, because it can

be used over relatively long distances, it is an effective last mile solution for

delivering broadband to the home, and for delivering wireless services to places like

airports, college campuses, and small communities.

High-bandwidth capability and cost effective

WiMax has the advantage of enabling operators to offer broadband services

without use of the incumbent‟s local loop infrastructure, ensuring greater control over

network operation. They can also provide reliable voice, data and video services

across wide operating environments. It provides a shared data rate of up to 100Mbps,

which is enough to service up to a thousand homes with high-speed access.

Easy to implement

Because WiMax does not depend on cables to connect each endpoint, deploying

WiMax to an entire high-rise, community or campus can be done in a matter of a

couple days, saving significant amounts of manpower.

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(f) 2.2.2 Weakness

Latency problems

Latency problem means that WiMax will be an expensive medium to deploy

compared with the existing DSL and cable network installed by carriers. Therefore,

WiMax is likely to remain as a niche in the consumer domain, catering for households

that are out of reach of DSL and cable, as well as those with technophile occupants.

High subscription costs

The high subscription costs, the relative immaturity of technologies and the

requirement for high towers (causing concerns from community groups) suggest these

services are unlikely to compete directly with DSL and cable in the medium term.

Immaturity of technologies

The mobile WiMax community is faced technical and competitive challenges

since the 802.16e specification is not yet finished. Certified mobile WiMax equipment

will arrive during or after 2007 and mobile carriers typically test new technologies

from 12 months to 18 months before implementing them throughout the network. For

a complete timing of WiMax mid-term vision see Appendix 5.

Mobile uncertainty (Roaming problem)

WiMax has the roaming problem. It leads to consuming more battery energy.

Therefore, battery capacity will be other prerequisites for the mass uptake of WiMax.

Intel‟s Battery Life Optimization Program is working towards a goal of eight-hour

laptop battery life by 2010 to support full mobility for broadband wireless. Wi-Fi has

the same problem, but 3G doesn‟t have.

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(g) 2. 2.3 Opportunity

Growing market

The worldwide wireless broadband audience of five million in 2005 is expected

to grow by 40 percent yearly through 2010 and the Broadband wireless market is

predicted to pass the $2 billion mark in 2010, WiMax vendors will be perfectly poised

to take advantage of this robust market.

Needs for universal standards

Some research indicates that a tipping point that will drive increased unit demand

is likely to occur due to effects of standardization which will help drive the price

equation, stimulate market driven demand, and provide increased supply stability and

compatibility across similar equipment profiles. Therefore, WiMax could benefit

service providers through its character of interoperability, ease of installation and

mobility.

(h) 2.2.4 Threat

Spectrum and regulation constrains

WiMax needs lower bands to economically deploy networks that will provide

full mobility. Higher than 3GHz bands are not suitable for mobile networks as proper

coverage would require too many base stations compared to sub 1GHz bands. The

WiMax regulatory group is working towards influencing the regulatory bodies

worldwide to open up bands for WiMax mobility. Those bands could include the

700MHz and 450MHz. The regulatory working group is also working to create an

environment to support eventual global roaming for nomadic & mobile WiMax

devices

Security considerations

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Security risks remain within the signalling servers themselves with hackers

employing one of several methods to obtain unauthorized access. OEMs must address

each of these methods individually and as a whole when developing effective security

infrastructure that can thwart hackers.

Potential substitutes

New technology could kill WiMax. For example, Techworld reports that a

Florida-based start-up, xG, has developed a technology that's a 1000 times more

efficient than WiMax and which could, in theory, lead to wireless LANs being

powered by watch batteries. It is still in early development, but this technology could

allow anyone to set up as an ISP. Therefore, there exist new technologies that could

replace WiMax before it even gets off the ground.

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3. Recommendation and Implementation

Based on the analyses above, we would like to recommend on how to choose an

appropriate target market for WiMax and how to successfully position and implement

WiMax in this market.

3.1 Targeting

Developing Country vs. Developed Country

To identify the targeted countries for WiMax deployment, a correlation analysis

has been done between each country‟s broadband penetration and its national income

level (GDP per Capita). The finding is broadband penetration is positively correlated

to national income level. In other words the higher the income level, the higher the

broadband penetration. However in some counties like Korea, the penetration is

extremely high compared to its income level. These countries are not a good choice

for WiMax due to the existence of their well established broadband infrastructure. On

the contrary to the Korea case, some high income level countries have relatively low

broadband penetration, such as Germany. Its broadband penetration is only 10%,

which makes itself a perfect market for WiMax. In conclusion, WiMax technology

should be focused on countries with low broadband penetration (See Appendix 6).

Urban Area vs. Rural Area

Demographics play a key role in determining the business feasibility of any

telecom network. To discover which segment is the most attracted to WiMax, an

assessment has been conducted on the basis of 4 main criteria: Customer Demand,

Technology Eligibility, Market Competition, and Profitability. Our recommendation

as a result is WiMax should go for rural area (Appendix 7).

 Customer demand (Go Urban)

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<Urban Area>

Large Customer Base: Urban area has a bigger population as such more potential

WiMax customers. So service providers will have a higher revenue potential.

High Demand: There is a significant need for wireless Internet access for business

reasons in office high rises and other public places. The fast paced life style in urban

area makes people more likely to need reliable high speed wireless access service at

every corner.

<Rural Area>

Small Population: It is sparsely populated with only a small number of businesses.

Neither its small number of businesses nor its more laid back life style will generate a

strong demand for wireless high speed Internet.

Pent-up Demand: The existing poor copper telephone line cannot satisfy customer

demand for good quality service and high speed access. There might be some pent-up

demand for high speed Internet access because of the lack of broadband access

infrastructure.

 Technology Eligibility (Go Rural)

<Urban Area>

Interference: In urban area, high rises and large buildings will create a higher level of

interference. Since WiMax use quite high frequency band, it is relatively easy to be

interfered.

Cross Connect: There are a variety of signals from TV/radio stations even automatic

doors, flying in the urban area. Therefore, unless government regulates the specified

spectrum for WiMax, the wireless broadband signal will get crossed, undermining the

quality of service.

<Rural Area>

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Long Distance: In rural area customers‟ residence is far from central offices. Existing

wired or wireless technologies have inherent limitations either in performance or in

capacity. For example, ADSL has the 6 km maximum distance on copper wire to

deliver sufficient performance. It makes economically not viable to overcome these

inherent limitations on the existing technologies to provide quality wireless broadband

services in rural area.

Low Interference: Since most of rural areas are relative flat, the signals from a

transmitter can go straight to a customer‟s receiver without any interference. But the

bad weather like fog or thunder storm is a potential cause of interference.

Possibility of Unlicensed Band: In rural area, radio spectrum for WiMax is not

regulated; thus it is relatively easy to apply the technology. Even in some cases, it is

possible to use unlicensed spectrum.

 Competition (Go Rural)

<Urban Area>

Strong competition: Due to higher density of potential customers, more service

providers will enter into this market. So the urban market is more competitive. As a

result, it will be incurred more marketing and sales expenses to secure market share.

The competition is primarily driven by the number of players and availability of

alternative technologies. In some areas, high speed broadband coverage almost

reaches the maximum (e.g. Korea 73%); these markets started to be saturated.

<Rural Area>

Few competitors: There are not many service providers in rural areas, even though

some areas have a big potential for broadband wireless access and WiMax services.

Government Support: In rural areas, governments at all levels are promoting wireless

broadband through continuing frequency allocation and subsidies to make the rural

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business case more attractive in order to improve the productivity and information

technology in rural area.

 Profitability (Go Rural)

<Urban Area>

High Switching Cost: The service providers have made huge investments in their

existing technologies. Before switching to WiMax, they have to make sure if they

have recouped their initial investment and maximized their return. So there will be a

strong resistance for existing providers to switch to WiMax.

<Rural Area>

Low Cost Low Return: Because of the significant less number of interfering objects in

rural area, the investment in equipment and the set-up cost are much lower. In

addition, service providers can build infrastructure from scratch without any

switching cost. Even though the revenue stream in rural area is low, its profitability is

better than urban area in the short run according to the simulation results from the

WiMax Forum due to the fact customers value of a network is linearly related to the

squared number of customers

3.2 Positioning

Even though WiMax‟s innovation offers significant improvements in terms of

speed and area coverage, it would fail to replace existing technologies that are already

widely adopted in the short run, such as 3G and Wi-Fi. As shown in Appendix 8, we

found out that the technology‟s stand-alone utility is not enough to exceed the total

value of the incumbent standard (e.g. Wi-Fi‟s technology + installed base+

complementary goods). Assuming WiMax‟s installed base and complementary goods

are compatible with that of the existing Wi-Fi, the WiMax technology may offer

greater overall value to users than Wi-Fi but smaller than that of 3G. From this fact,

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we suggest that WiMax enter into the fixed wireless market (Niche) at this stage. One

thing we have to pay attention to is that the WiMax‟s perceived value may be greater

than actual value because of the too much expectation and heavy promotion (See

Appendix 9), causing WiMax technology be overvalued.

3.3 Implementing

The optimal timing of entry is determined by several major factors: (1) the

advantage margin of the new innovation, (2) customer expectations, (3) the threat of

competitive entry, (4) the increase of profitability. In terms of the advantage of

innovation, WiMax‟s technology is almost ready for fixed wireless usage and better

than Wi-Fi at this stage; thus it would be better to enter into the market as soon as

possible. In terms of the customer expectation, overall expectation seems high

enough for the wide variety of wireless usage, such as business, residence, appliance

and car, etc. So there will be an enough customer base in this niche market. In terms

of the competition, the improvement of Wi-Fi/3G technology seems to be not ready

by 2010, so now is a good timing for WiMax to enter into the market. In terms of the

profitability, the early market entry can capture scarce resource such as key customers,

key locations, distribution channel and relationship with suppliers. Targeting the

business users can be one of the good solutions because they have a very high ARPU

(Average Revenue per User). A real example (See Appendix 10) shows small

providers can leverage WiMax‟s competitive advantages in the market.

We recommend that the big service providers can use WiMax as a

supplementary technology to penetrate rural market. To small service providers which

could not afford 3G‟s high license and equipment costs, WiMax is a powerful

technology for them to compete with established service providers and gain niche

market share both in urban and rural areas.

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Appendix 1:WiMAX-DIAGRAM

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Appendix 2: WiMax in the technological lifecycle

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Appendix 3: Relation with other wireless technologies

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Article II. Appendix 4: Mid-time WiMax Vision

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Appendix 5: Target Area (Urban or Rural)

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Appendix 6: Value of Technology

Fix Market Wireless

(Niche) (Mass)
Comp.
Comp. Goods
Goods
Value

Comp.
Goods Inst. Inst.
Base Base
Inst.
Base
Tech
Tech Utility Tech
Utility Utility

Wi-Fi WiMax 3G

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Appendix 7: WiMax Service Provider - NextWeb

NextWeb, Inc. is a California's largest fixed-wireless Internet service provider

for business, providing high-speed service to more than 2,000 enterprise customers. In

2004, the company was named one of the 50 fastest growing Bay Area companies by

all three leading business publications in the Industry. NextWeb's service is available

in over 200,000 business locations and more than 175 cities throughout California.

Typically installed in just three to seven days, NextWeb's standard Super-T service is

30 percent faster than a T1 at 70% of the price, easily scaling to six times the speed of

a T1. The company is active in the formation of industry standards, and is a member

of the WiMax Forum and the Wireless Communications Association International

(WCA). Because NextWeb owns and maintains its own independent

telecommunications network and connects directly to the Internet backbone, the

company's service completely bypasses telephone and cable companies, providing

customers with significantly more bandwidth at substantially lower startup and

monthly costs. The fixed-wireless company guarantees its high-speed Internet service

will be up and running for its customers in three to seven business days, compared to

weeks or months typically associated with larger wire line carriers .

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4.APPLICATION:-
The WiMax will provide solutions to the following multiple broadband segments :

Cellular backhaul:
The robust bandwidth of technology makes it an excellent choice for the

backhaul for commercial enterprises, such as those providing „hotspots‟, as well as for

point to point backhaul applications.

Broadband to undeserved and remote areas:

WiMax is a natural choice for under serviced rural and outlying areas with a

low population density.

Broadband on-demand:

It can help to accelerate the deployment of Wi-Fi hotspots and SOHO wireless LANs,

especially in those areas not served by cabel, DSL or in areas where the local

telephone company may have a long lead time for providing a broadband service.

Broadband Residential:-

This fills the gaps is cable and DSL coverage.

Best-connected wireless service:-

WiMAX has monadic capabilities, which allow users to connect to a WISP

(wireless ISP) Even when they roam outside their home or business, or go to another

city that also has a WISP

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5.CONCLUSION:-
WiMAX promises to expand the availability of broadband service to residences and

businesses that are currently under-served, including low-density rural locations in

developed countries, as well as in emerging markets. It will also provide a flexible

solution to end users for whom current provisioning timeframes are prohibitive, or for

whom wired infrastructure is not available.

WiMAX technology represents an expanding opportunity for service providers,

equipment manufacturers, and chipset suppliers operating in both licensed and

licenseexempt bands. Initially, WiMAX solutions will be based on the IEEE 802.16-

2004 specification, allowing fixed access for point-to point and point-to-multipoint

use. A robust technology ecosystem, based on worldwide standards, is expected to

evolve over time, ultimately yielding the dual benefits of interoperability and volume

economics.

As with any new and evolving technology, numerous factor must be understood to

ensure a successful deployment. This paper has focused on several specific issues

related to license-exempt deployments, including RF interference and infrastructure

placement.

RF interference results in a complex and ever changing environment. It should be

respected and understood by service providers, but not feared. Solutions for dealing

with rf interference include proper network design, use of advanced antenna

technologies, point-to-point deployments identification of appropriate markets for

WiMAX technology,filtering, shielding, frequency reuse, and synchronization with

other providers. These solutions will help address some RFinterference issues.

A robust network design is based on site surveys, statistics gathering, and

coordination of RF use with neighboring providers to directly address interference

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issues. WiMAX license-exempt solutions based on robust network design are poised

to become a dependable and resilient solution for specialized markets. Business class

WiMAX services can and will soon be deployed in both licensed and license-exempt

bands.

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6.Bibilography
(1) WiMAX website:

http://www.wimax.com

(2) The Promise of WiMAX Broadband Access to the Last Mile

http://www.motorola.com/networkoperators

(3) www.google.com

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