Mobile Wimax:: The Best Personal Broadband Experience! June 2006

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Mobile WiMAX:

The Best Personal Broadband


Experience!
June 2006

Copyright 2006 WiMAX Forum


WiMAX Forum and "WiMAX Forum Certified are registered trademarks of the WiMAX Forum.

________________________________________________________________________

Executive Summary
Personal broadband is emerging as one of the hottest areas of growth within mobile data.
It enables users to enjoy the same user experience they have at home or in the office
wherever they go. WiMAX is an innovative technology that will make personal
broadband services profitable to service providers and widely available to business and
consumer subscribers at affordable prices. The first mobile WiMAX products are
expected to be introduced into the market at the end of 2006 or in the first quarter of 2007
and will be followed in the second half of the year by equipment with multiple advanced
antenna capabilitiesMIMO and beamformingfor higher throughput and capacity.
The WiMAX Forum believes that mobile WiMAX services complement existing and
future broadband technologies, both wired and wireless, to best assure the coverage and
capacity requirements to meet consumer demand. Clearly any technology that is
complementary can also be competitive and it is up to service providers to decide how to
best take advantage of WiMAX and how to ensure that their operation remains profitable
for the long term.
Among the broad mix of service providers trialing or committed to deploy mobile
WiMAX are wireline incumbents, 3G and 2G mobile operators, DSL and cable modem
operators, CLECs, WISPs, greenfield operators and MVNOs. Their WiMAX strategies
are varied, but they all depend on key WiMAX strengths:
- Superior performance, made possible by the adoption of OFDMA multiplexing,
which gives WiMAX a performance edge in delivering IP data services compared to
3G technologies.
- Flexibility, which allows service providers to support multiple usage models,
including fixed and mobile access, over the same WiMAX infrastructure and to
operate their networks in multiple spectrum bands.
- Advanced IP-based architecture, which includes IMS support to facilitate a rapid,
low cost, rollout of new applications and of interworking with 3G and other
technologies.
- Attractive economics, driven by a standards-based approach, cost-effective
infrastructure, mass adoption of low-cost subscriber units, and attractive IPR
royalties.
WiMAX modules will be embedded into many data, CE and voice devices, including
notebooks, PDAs, Ultra Mobile PCs, games consoles, MP3 players, cellular phones and
smartphones, as well as devices for vertical application, like CCTV cameras and invehicle subscriber stations. WiMAX support for QoS and low latency will translate into
Copyright 2006 WiMAX Forum
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improved support for real-time, low-latency applications like VoIP, video gaming,
streaming and video conferencing, all of which are designed to further accelerate the
adoption of personal broadband.
WiMAX is a high-capacity IP-based technology based on open standards that can be
deployed as a new network installation or as an overlay to complement existing 2G and
3G wireless technologies thus lowering the capex. In either case WiMAX networks will
be capable of interworking with cellular and wired networks. High speed Internet access
and services and applications supported by WiMAX can deliver higher revenues per user,
new subscribers, lower churn, and additional revenues from wholesale and new service
partners.

Copyright 2006 WiMAX Forum


WiMAX Forum and "WiMAX Forum Certified are registered trademarks of the WiMAX Forum.

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Mobile WiMAX:
The Best Personal Broadband Experience?

Introduction: The market for personal broadband


Mobile Internet 1 has emerged as the latest mobile services and is one of the fastest
growing segments in the global telecommunications market. Subscribers value the
freedom, immediacy, ease-of-use and power of mobile communications it brings and this
will drive explosive growth over the next decade, but the market is still taking its first
steps. Service availability is limited today, few subscribers have a true broadband
experience with throughput above 1 Mbps, and the cost of service is still too high.
However, the increasing penetration of notebooks, PDAs and other portable, data-centric
devices is creating a strong propensity for the adoption of mobile Internet services.
Mobile data revenues are growing quickly, and in many developed countries, they now
account for 20% to 30% of operator revenues, whereas voice revenues are stagnant or
falling (Figure 1).
Fixed Voice

Fixed Data

Mobile Voice

Revenues (100 Million USD)

14

Mobile Data

CAGR = -3.08%

12
10

CAGR = 4.77%

CAGR = 20.2%

CAGR = - 6.23%

6
4
2
2004 2008

2004 2008

2004 2008

2004 2008

Figure 1. Voice and data revenues in Korea. Source: KISDI, 2004

Most of the growth in mobile data will be driven by personal broadband, which goes
beyond basic cellular data services and replicates the functionality of wired broadband in
1

In this paper, the term mobile Internet refers to fixed, portable and mobile usage scenarios. In mobile
scenarios, the subscriber accesses the network while moving: walking, or sitting in a car or a train. In
portable scenarios, the subscriber is mainly stationary: sitting at a desk or a coffee shop, waiting in an
airport or train station.
Copyright 2006 WiMAX Forum
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a mobile environment. The applications and services now available at home and in the
office will become available everywhere. Ubiquitous broadband access will encourage
work productivity, personal communications and entertainment on the go. New services
and applications that are specifically suited to mobile usage scenarios will also appear:
mobile office, on-board entertainment, mobile search, fleet management, surveillance and
public safety will be the first to be adopted and more will follow. As with the transition of
voice communications from fixed lines to mobile phones, the broadband connection will
cease to be tied to a particular location and will become a personal service.
Second and third generation cellular infrastructure is optimized to carry circuit switched
voice traffic and is not designed to cope with the growing amount of traffic generated by
high-speed and real-time applications until the rollout of Long Term Evolution (LTE)
which is expected in 2010. To meet the demand for wireless broadband, mobile operators
and other service providers have to explore new technologies when planning for nextgeneration networks. They want to roll out these services now.
Mobile WiMAX is the technology that best meets the demand for personal broadband
services. It is based on a next-generation all-IP core network, that offers low latency,
advanced security, QoS (Quality of Service), and worldwide roaming capabilities.
Service providers also benefit from the low costs that a technology based on open
standards, vendor interoperability, and favorable Intellectual Property Rights (IPR)
allows.
WiMAX will coexist and interwork with existing and emerging technologies, both wired
and wireless. Even though it can support Voice over IP (VoIP), WiMAX will not replace
or compete with 2G or 3G technologies for voice services. Cellular networks provide the
extensive coverage that circuit-switched voice services require and that the WiMAX
infrastructure is not designed to support. Third generation networks cover many urban
and suburban areas, but they will not be able to offer sufficient capacity or throughput
(Figure 2) for data applications. Similarly, WiMAX and Wi-Fi are complementary and
are expected to be incorporated in dual-mode chipsets in mobile devices, as WiMAX
provides wider coverage, while Wi-Fi is better suited for high-throughput, indoor LAN
applications. WiMAX also addresses the requirements of those subscribers that want to
be able to use their broadband connection regardless of location, a functionality that DSL
and cable modem services do not support. The WiMAX Forum has taken a proactive role
in ensuring that WiMAX will be capable of interworking with these technologies and in
supporting emerging architectures like IP Multimedia Subsystem (IMS) that enable
operators to make the same applications and services available across multiple wired and
wireless interfaces.

Copyright 2006 WiMAX Forum


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Figure 2. Wi-Fi, WiMAX, 3G and 2G coverage. Source: WiMAX Forum

There is a strong case for mobile and fixed carriers, greenfield operators, Mobile Virtual
Network Operators (MVNOs) and other service providers to adopt mobile WiMAX to
meet subscriber demand for personal broadband. It offers a compelling business
opportunity that many service providers worldwide are carefully assessing or have
already embraced. Service providers that are committed to providing the best possible
service to their subscribers cannot afford to leave WiMAX out of their roadmap to fourthgeneration networks.

The evolution towards mobility in WiMAX


Products compliant with the first fixed WiMAX certification profiles were released in
January 2006, but WiMAX achievements started well ahead of product availability.
WiMAX has spurred broadband wireless access and mobile infrastructure vendors to
work towards a single technology based on open standards and interoperability. The
WiMAX Forum, the industry association that defines WiMAX specifications and
manages the WiMAX Certified program, has attracted 371 members representing the
entire value chain, from component and silicon vendors (69 members), to system vendors
(76), service providers (138) and other ecosystem players (88). WiMAX has elicited great
interest from service providers, reflected in the more than 150 carrier trials under way as
of the beginning of 2006.
Mobile WiMAX is based on IEEE 802.16e-2005 and will initially operate in the 2.3
GHz, 2.5 GHz, 3.3 GHz, 3.4-3.8 GHz spectrum bands. Support for additional bands will
be added on the basis of market demand and new spectrum allocations. The WiMAX
Forum plans to start the certification of mobile WiMAX equipment in the second half of
2006, with the first certified products expected for the end of 2006 or the first quarter of
2007. All mobile WiMAX products will support handoffs and power-saving mechanisms.
More advanced mobile functionality will gradually be added through support for highspeed handoffs, roaming and multiple antenna technologies such as MIMO and
beamforming and be available in equipment in the second half of 2007.
Copyright 2006 WiMAX Forum
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The appeal of mobile WiMAX goes well beyond mobility: it offers a true broadband
connection that supports multiple usage scenarios, including fixed, portable and mobile
access, using the same network infrastructure. This provides an unprecedented degree of
flexibility in the range of applications supported and allows WiMAX to move beyond the
fixed-versus-mobile dichotomy to offer cost-effective personal broadband services. Initial
mobile WiMAX equipment will include notebook-based subscriber units (mini PCMCIA
cards, PCI Express, PCI Express mini, USB modules, etc.) and desktop units. The
introduction of mobile devices with embedded WiMAX Systems-On-Chips (SOCs), such
as notebooks, the Ultra Mobile PC (UMPC), PDAs, phones, smartphones and other
wireless devices are expected to follow in 2008.

Why choose mobile WiMAX?


Drivers for adoption vary among service providers, but there are a few crucial factors that
give WiMAX an edge over other wired and wireless technologies. These drivers are key
to ensuring the mass adoption of end-user devices and widespread infrastructure
deployments.
1. Superior performance
WiMAX meets all the requirements for mobile Internet access. It supports multiple
handoff mechanisms, ranging from hard handoffs (with break-before-make links) to soft
handoffs (with make-before-break links), power-saving mechanisms for mobile devices,
advanced QoS and low latency for improved support of real-time applications, and
advanced Authorization, Authentication, and Accounting (AAA) functionality.
The advanced performance of mobile WiMAX is largely tied to its use of Orthogonal
Frequency Division Multiple Access (OFDMA), a multiplexing technique well suited to
multipath environments that gives network operators higher throughput and capacity,
great flexibility in managing spectrum resources, and improved indoor coverage (Figure
3).
OFDMA has clearly emerged as the technology of choice for next-generation mobile
networks. The Third Generation Partnership Project (3GPP) has incorporated OFDMA in
its LTE specification and the Third Generation Partnership Project Two (3GPP2) is
moving in the same direction (Figure 4). WiMAX has a two-to-three year time advantage
over LTE, which is still in the early stages of development. Furthermore, LTE is expected
to use OFDMA only in the downlink, with single-carrier FDMA employed in the uplink.
This will impact the uplink throughput from mobile devices and result in lower spectrum
efficiency in comparison to WiMAX. The WiMAX Forum is keen to cooperate by
interworking with 3GPP and 3GPP2 to provide the maximum value to operators allowing
them to reach as many customers as possible.
Copyright 2006 WiMAX Forum
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WiMAX performance is further enhanced by the use of Time Division Duplex (TDD),
but it can also support Frequency Division Duplex (FDD) which dominates in 3G
networks. Whereas FDD keeps the uplink and the downlink channels separate in
frequency, TDD is a less complex, more efficient mechanism that uses a single frequency
channel, with uplink and downlink traffic separated by a guard time. In addition, for IPbased services the use of a single channel for the uplink and the downlink makes it
substantially less complex and more cost-effective to implement MIMO and
beamforming in WiMAX networks than in CDMA-based networks. MIMO and
beamforming are expected to bring a substantial improvement in throughput in TDDbased WiMAX networks.
Net Throughput per Channel/Sector
16
14
12
Mbps 10
8
6
4
2

Downlink
Uplink

Uplink/downlink
traffic ratio
Technology

Channel width

1:1
1xEVDO
Rev A

3xEVDO
Rev B

2x1.25
MHz

HSDPA

HSPA

3:1

1:1

SIMO

3:1
MIMO

Mobile WiMAX
2x5 MHz

1x10 MHz

Spectral Efficiency
2.0
1.5

bps/Hz

1.0
0.5

Downlink
Uplink

Uplink/downlink
traffic ratio
Technology

1:1
1xEVDO
Rev A

3xEVDO
Rev B

HSDPA

HSPA

3:1

1:1

SIMO

3:1
MIMO

Mobile WiMAX

Figure 3. Performance comparison between WiMAX and 3G technologies. Note: 1xEV-DO uses one
1.25 MHz channel for the uplink and one for the downlink, 3xEV-DO uses three 1.25 MHz channels
for the uplink and three for the downlink. Source: WiMAX Forum [5]. Single Input, Multiple Output
(SIMO) refers to the use of multiple (in this case two) receiver chains at the mobile unit. No results
for beamforming are shown as they are dependent on the base station implementation and the results
can vary with the deployment scenarios.
Copyright 2006 WiMAX Forum
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Figure 4. Evolution of 3G and WiMAX. Source: WiMAX Forum

2. Flexibility
WiMAX was designed from the ground up to be an all-IP technology that is optimized
for high-throughput, real-time data applications and that is not beholden to a legacy
infrastructure. WiMAX can be deployed both in greenfield deployments, where network
operators rely exclusively on WiMAX for the edge infrastructure, and in overlay or
complementary networks, where operators embed WiMAX within their networks to
increase capacity and throughput as necessary to deliver true wireless broadband service.
Cellular networks based on GSM, CDMA, WCDMA and EV-DO use spectrum resources
that are limited and typically too expensive for cost effective high capacity and highthroughput broadband services. Mobile WiMAX broadband networks will offer service
providers a profitable model to deploy multiple value-added services that bring in
additional revenues streams. The additional cost of bundling new mobile services with
existing ones is low, as the operators already have an established relationship with the
subscriber and can leverage their existing marketing, branding and customer service
operations to support the new services.
Global roaming among WiMAX service providers will allow subscribers to access
different networks using the same device and a single, familiar interface. Global roaming
will become an essential feature of the mobile service offering that will increase the
attractiveness to the subscribers and generate additional revenues. If they offer access
through their partners using roaming agreements similar to those in place for cellular
networks, service providers will be able to get the desired footprint in their market
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without having to build an extensive infrastructure. The WiMAX Forum is working
towards a framework that will encourage the establishment of global roaming
relationships among service providers.
Spectrum is a limited resource and network operators that want to deploy WiMAX
typically do not have a choice when deciding which frequency band to use. Mobile
WiMAX can be deployed in several licensed bands (2.3 GHz, 2.5 GHz, 3.3 GHz, 3.4-3.8
GHz) with channel sizes ranging from 3.5 MHz to 10 MHz. This gives operators the
flexibility to use WiMAX in multiple spectrum bands and with the amount of spectrum
they have. WiMAX Forum Certified equipment will be approved in additional spectrum
bands in response to the needs of operators worldwide.
The WiMAX Forum recognizes the importance of spectrum availability to network
operators and is taking a proactive role in promoting an increased availability of spectrum
for WiMAX deployments. It is a member of the ITU and it is working with the
International Mobile Telecommunications (IMT) community to develop the definition for
the forthcoming IMT-Advanced technologies. At the same time, the Forum is actively
engaged with telecom regulators in many countries to ensure that the most suitable and
flexible regulatory environment exists for WiMAX deployment in the frequency bands of
interest. Regulators worldwide have shown a keen interest in developing novel regulatory
approaches that promote WiMAX adoption as they feel the technology will be a driver
towards higher Internet penetration and help position their countries at the forefront of
innovation. For example, Japan has recently approved WiMAX technology in the 2.5
GHz spectrum to complement UMTS in other spectrum bands.
3. Advanced IP-based architecture
WiMAX is a next-generation technology that will facilitate the cellular operators
transition to all-IP networks. Cellular networks are also moving towards an IP core with
the LTE and System Architecture Evolution (SAE) efforts, but this activity is in its early
stages with service expected to be rolled out in 2010.
WiMAX fully supports IMS 2 and its 3GPP2 counterpart, MultiMedia Domain (MMD),
emerging architectures that will enable service providers to introduce a wide range of rich
voice and data applications rapidly and at a low marginal cost (Figure 5). With IMS and
MMD, service providers can develop applications independently of the access technology
within a flexible layered architecture in which application modules can be easily
modified or reused.

2. WiMAX does not require IMS for its operations. Network operators that do not need IMS functionality
can still take advantage of the core capabilities of WiMAX.
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Figure 5. Role of IMS in a network with 3G, Wi-Fi and WiMAX. Source: WiMAX Forum

The IP core network at the basis of WiMAX will simplify interworking with other IP
technologies. Support for IMS and MMD will further facilitate interworking and remove
existing redundancies in the core network. At the beginning, however, WiMAX will have
to be seamlessly integrated with existing cellular networks, which still lack an IP core. To
foster integration with other technologies, the WiMAX Forum has established the
Networking Working Group which closely collaborates with service providers, the IEEE,
ETSI, 3GPP and 3GPP2, to assure a unified network architecture that facilitates
interworking, roaming and infrastructure sharing with current and emerging cellular and
wired technologies.
4. Attractive economics
WiMAX meets the growing mass-market demand for cost-effective, high-throughput
broadband wireless services. The business case for WiMAX is attractive as the cost of the
equipment is kept low by a combination of interoperable components based on open
standards, mass adoption of subscriber units, an attractive IPR structure, and a high base
station capacity. In turn, its contained infrastructure costs and efficient spectrum
utilization allow service providers to address demand from the mass market, by offering
personal broadband services at a price point that both business and consumer users will
find attractive.
Mobile WiMAX equipment is based on IEEE 802.16e-2005 and ETSI HiperMAN 1.3.2,
and is certified by the WiMAX Forum to be interoperable with other equipment in the
same spectrum band. Interoperability brings more choices to network operators and
increases competition among vendors. Network operators are not dependent on a single
vendor to provide both base stations and subscriber units, or to decide the pace and
availability of upgrades.
The cost of open-standards equipment tends to decrease rapidly with the increase in
volume and the market entry of high-volume, low-cost, vendors. The integration of Wi-Fi
and WiMAX in a single chipset and the commitment by device manufacturers to
incorporate a WiMAX interface into their new products are expected to contribute to an
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even deeper cost reduction for subscriber units. The availability of low-cost subscriber
units will further encourage adoption from subscribers, and in turn the presence of a large
installed base will make deployment of the infrastructure more attractive to network
operators. Wide scale deployments of WiMAX and Wi-Fi in notebook computers are
expected for 2008.
An attractive IPR structure is another advantage of WiMAX compared to 3G
technologies. Royalties paid by manufacturers on WCDMA phones are an average of
10% to 15% of the Average Selling Price (ASP) of a handset, compared to a
telecommunication industry norm of 2% to 5% [1][2]. A less onerous IPR model will
lead to a substantial reduction in equipment prices and fair treatment of vendors without
essential IPR, which in turn will increase competition in the market and the attractiveness
of WiMAX to network operators. The WiMAX Forum is currently exploring, and will
endorse, solutions to provide a fair and reasonable rate and framework that will benefit
both IPR holders and other vendors.
On the network side, open standards, interoperability and lower IPR royalties are
responsible for only a part of the cost savings. While the cost of installing each base
station and the density of base stations are similar for 3G and WiMAX, the capacity that
a WiMAX base station provides is substantially higher both because of the use of
OFDMA in wider channels, and advanced antenna technologies like MIMO and
beamforming.

The basis of WiMAX success: new devices and applications


WiMAX will promote the adoption of new devices and applications that take advantage
of its high-throughput, low latency and QoS functionality and the support for mobile
access. Among the mobile devices expected to have a WiMAX interface are:
- Data centric devices: notebooks, PDAs, Ultra Mobile PCs
- CE devices: games consoles, MP3 players
- Voice and voice/data devices: cellular phones, smartphones
- Vertical applications devices: CCTV cameras, in-vehicle devices.
Furthermore, WiMAX will encourage manufacturers to explore new form factors that
current cellular technologies cannot support because of the capacity limitations or
because of the cost of traffic transport.
WiMAX will complement other wired and wireless interfaces. Most notebooks, PDAs
and handsets will include an integrated Wi-Fi and WiMAX chipset and allow subscribers
to connect to the best available network. Subscribers will no longer face a trade-off
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between coverage and throughput: with a dual-mode WiMAX and cellular device, for
instance, they will be able to connect to the WiMAX network in urban areas, to the 3G
network in suburban areas and still retain basic connectivity through 2G GSM or CDMA
networks when in rural areas.
When it comes to applications, WiMAX means freedom to both subscribers and service
providers. Service providers are not forced to develop special applications for WiMAX,
because those already existing will work in a WiMAX network just as they do on the
wired one, without any modification. However WiMAX will encourage the early
emergence of mobile applications that address the specific needs of mobile Internet users.
Furthermore, WiMAX support for IMS will facilitate the ubiquitous deployment of
managed services for subscribers across wired and wireless platforms.
VoIP is expected to be one of the most popular WiMAX applications. Its value
proposition is immediate to most users: with a data connection plan, VoIP calls can be
received or placed at a very low or, in some cases, no additional cost. While WiMAX is
not designed for switched cellular voice traffic as cellular technologies like CDMA and
WCDMA are, it will provide full support for VoIP traffic thanks to QoS functionality and
low latency. WiMAX will not challenge the voice revenues of mobile operators, as
cellular networks offer a cost-effective infrastructure for voice communications with an
extensive coverage that WiMAX is not designed to replace. However a mobile operator
may move some voice traffic to the WiMAX infrastructure due to capacity constraints.
Other real-time applications like mobile video and audio streaming, videoconferencing
and gaming, will greatly benefit from QoS and low latency. They will become
increasingly important as new devices optimized for these applications are introduced.
Broadcast is another potential WiMAX application. Work is currently under way within
the WiMAX Forum to further develop the Multicast and Broadcast Services (MBS)
protocols within the standard to allow efficient multicasting of content.
Vertical applications like surveillance, public safety, connectivity to remote devices,
inventory tracking, fleet management and educational services can also be supported by
mobile WiMAX networks with little or no incremental cost to network operators. These
applications require robust and reliable connectivity, but in most cases it would be
prohibitively expensive to build separate networks to support them. A WiMAX operator
is well placed to support these applications and to secure new revenue streams either by
providing the service to new market segments, or by establishing wholesale relationships
with service providers that focus on specific verticals.

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Figure 6. Global carriers that have announced WiMAX trials. Source WiMAX Forum

Who will deploy mobile WiMAX?


The WiMAX Forum has seen a strong interest in WiMAX from a broad range of service
providers, the largest group among Forum members (Figure 6). Their business models are
varied, but many of their goals are common:
- Minimize traffic costs to deliver mobile data services.
- Improve efficiency of spectrum utilization.
- Offer new high-bandwidth, low-latency services to mobile users, over an IP-based
network, that support real-time applications like VoIP, content streaming and gaming.
- Choose a technology that delivers a positive Return on Investment (ROI).
Some of the most common approaches to WiMAX are listed below:
- Fixed and mobile operators (e.g. KT in Korea and Telecom Italia in Italy) see a
great opportunity in mass-market personal broadband services based on new datacentric, mobile devices. KT in Korea has already started to deploy WiBro services,
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based on mobile WiMAX, that are designed to complement its MVNO and fixed
broadband services. Alberto Ciarniello, VP of Technology Innovation at Telecom
Italia, explains that Telecom Italias preferred option for mobile WiMAX is its
inclusion within 3GPP as an IP technology for LTE. Mobile WiMAX is a very
interesting technology for our convergent broadband development roadmap.
Telecom Italia ran a WiMAX trial during the Olympics in Turin to showcase
innovative and entertainment triple play service concepts.
- 3G mobile operators (e.g. KDDI in Japan, Telecom Italia in Italy) are evaluating
WiMAX as an overlay to their 3G networks, with plans to deploy it when additional
capacity is needed. KDDI plans to roll out mobile WiMAX as an overlay to EV-DO
and has already successfully demonstrated handovers between the two technologies.
Tadashi Shinohara, Senior Manager at KDDI, sees mobile WiMAX as the first step
towards an IP-core supporting MMD, and identifies VoIP, downloads and streaming
of music and video as key applications that WiMAX will support in a cost-effective
way. As an added bonus, the range of WiMAX base stations is comparable to that of
3G base stations operating in nearby spectrum bands, thus making an overlay network
particularly attractive, as the existing cellular infrastructure can be extensively reused.
- 2G mobile operators that do not operate a 3G network typically plan to deploy a
new technology that supports mobile Internet. For them, WiMAX is one of the best
choices (as in the case of Yozan in Japan) and, free of a 3G legacy, they will have the
opportunity to leap ahead of 3G operators and head directly towards a next-generation
technology that is cheaper to deploy, affords a better performance, and smoothes the
transition to an IP-core network and to fourth-generation networks.
- Wireline DSL and cable modem operators (e.g. Comcast in the US, France
Telecom in France, Omnivision in Venezuela, TVA Sistema de Televisao, Brazil)
have control over the fixed infrastructure and may want to deploy fixed WiMAX in
areas of limited coverage, with a view to deploying mobile WiMAX later as a
complement to their fixed broadband services. In some cases, they may elect to focus
exclusively on mobile WiMAX. WiMAX operators can bundle personal broadband as
an extension of the current services that allows subscribers to take the service with
them wherever they go. In this case, WiMAX enables these operators to differentiate
their products from wired competitors and to gain additional revenues without the
cost and effort of becoming a fully-fledged mobile operator.
- CLECs (Competitive Local Exchange Carrier), ISPs (Internet Service
Providers) and WISPs (Wireless ISPs) (e.g. Covad in the US, Ertach in Argentina,
Iberbanda in Spain, Irish Broadband in Ireland, Pipex in the UK) plan to deploy
WiMAX in the near future to capitalize on unmet demand for broadband connectivity
in underserved areas without having to rely on the incumbents DSL infrastructure.
Once the infrastructure is in place, the transition to mobility will be attractive as it
will enable them to extend their product range or offer wholesale access to their
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network to MVNOs. Dual-mode equipment will also enable operators to gradually
transition from fixed to mobile WiMAX and extend the range of services they offer to
include portable and mobile access.
- MVNOs may want to offer personal broadband services, but they have no interest in
building their own WiMAX networks. Instead they will look to enter wholesale deals
with multiple WiMAX operators to obtain a large footprint, which may extend
beyond their country. MVNOs may include cellular MVNOs (e.g. Virgin in the UK
and in the US, Helio in the US), content providers (e.g. ESPN, Disney in the US), and
satellite operators (e.g. DirectTV, Echostar in the US). Among the wide range of
companies interested in becoming an MVNO, the key common asset is an existing,
strong relationship with subscribers, which the MVNO hopes to extend to new
services.
- Greenfield operators (e.g. operators participating in the M-Taiwan project, WiMAX
Telecom in Austria, Slovakia and Croatia) have started to emerge as new licenses are
awarded for broadband wireless access and new operators have stepped forward
either to start with fixed services and move to mobility later, or to target mobile users
from the start. In some cases they may want to market personal broadband directly to
subscribers, in others they may elect to create a wholesale platform to sell to MVNOs.
M-Taiwan, for instance, includes several network operators that plan to cover 8
million people and to offer seamless roaming capabilities to their subscribers from the
beginning. The network will support public access, as well as multiple government,
safety and educational services.

Conclusions: WiMAX in the mobile wireless ecosystem


Is there room for yet another wireless data technology in the market? In the Wireless
Metropolitan Area Network (WMAN), WiMAX is an excellent complement to other
wireless technologies that are designed to work in the LAN (Wi-Fi) or that offer wider
coverage but with more limited capacity (GSM, CDMA, WCDMA, EV-DO). The
increasing demand for wireless services and the more exacting requirements of emerging
applications have created a market in which multiple wireless technologies, each with its
own core advantages, can and need to coexist to meet subscriber expectations. The key
challenge for service providers is to understand what role is best for each technology,
how different technologies complement each other and how they meet their requirements
in a cost-effective way.
As they develop a strategy to add personal broadband to the services they offer, network
operators will find the advantages that WiMAX brings in performance, cost, flexibility
and innovation crucial in maintaining a leading position in their markets. When compared
to other wireless technologies, WiMAX offers superior performance, a more flexible
network architecture that encourages interworking and roaming, and cost-effective,
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interoperable equipment. This allows WiMAX to support any bandwidth-intensive, realtime application on any device, using a common user interface.
WiMAX operators will be the first to offer personal broadband value-added services to
their subscribers. Personal broadband makes accessible anywhere any data and voice
application that subscribers are accustomed to using from home or the office, plus
additional ones designed for mobile users. With WiMAX, network operators will be able
to capitalize on the explosive demand for personal broadband among business and
consumer users that existing wired and wireless technologies cannot satisfy in a costeffective way, and they will generate new revenue streams from new services.

Further reading
[1]
[2]
[3]
[4]
[5]
[6]

Credit Swiss First Boston (2005): 3G Economics. IPR Extending Competitive Advantage.
David J. Goodman, Robert A. Myers (2005): 3G Cellular Standards and Patents. Proceedings of 2005
IEEE Wireless Communications and Networking Conference, June 13-16.
WiMAX Forum (2005): Fixed, nomadic, portable ad mobile applications for 802.16-2004 and
802.16e WiMAX networks. Available at www.wimaxforum.org
WiMAX Forum (2006): Mobile WiMAX Part I: A Technical Overview and Performance
Evaluation. Available at www.wimaxforum.org
WiMAX Forum (2006): Mobile WiMAX Part II: Competitive Analysis. Available at
www.wimaxforum.org
WiMAX Forum (2006): Mobile WiMAX Usage Scenarios. Available at www.wimaxforum.org

Acronyms
2G

Second Generation

3G

Third Generation

3GPP

Third Generation Partnership Project

3GPP2

Third Generation Partnership Project Two

AAA

Authorization, Authentication and Accounting

ASP

Average Selling Price

CCTV

Closed Circuit TV

CDMA

Code Division Multiple Access

CE

Consumer Electronics

CLEC

Competitive Local Exchange Carrier

DSL

Digital Subscriber Line

ETSI

European Telecommunications Standards Institute

EV-DO

EVolution Data Optimized

FDD

Frequency Division Duplex


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GSM

Global System for Mobile communications

HiperMAN

High Performance Radio Metropolitan Area Network

HSDPA

High Speed Downlink Packet Access

HSUPA

High Speed Uplink Packet Access

IEEE

Institute of Electrical and Electronics Engineers

IMS

IP Multimedia Subsystem

IMT

International Mobile Telecommunications

IP

Internet Protocol

IPR

Intellectual Property Rights

ISP

Internet Service Provider

ITU

International Telecommunication Union

LAN

Local Area Network

LTE

Long Term Evolution

MBS

Multicast and Broadcast Services

MIMO

Multiple Input, Multiple Output

MMD

MultiMedia Domain

MP3

MPEG (Moving Pictures Experts Group) Layer 3

MVNO

Mobile Virtual Network Operator

OFDMA

Orthogonal Frequency Division Multiple Access

PCI

Peripheral Component Interconnect

PCMCIA

Personal Computer Memory Card International Association

PDA

Personal Digital Assistant

QoS

Quality of Service

RAN

Radio Access Network

ROI

Return On Investment

SAE

System Architecture Evolution

SIMO

Single Input, Multiple Output

SISO

Single Input, Single Output

SOC

System-On-a-Chip

TDD

Time Division Duplex

UMPC

Ultra Mobile PC

UMTS

Universal Mobile Telecommunications System

USB

Universal Serial Bus


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VoIP

Voice over Internet Protocol

WCDMA

Wideband CDMA

WiBro

Wireless Broadband

WiMAX

World Interoperability for Microwave Access

WISP

Wireless Internet Service Provider

WMAN

Wireless Metropolitan Area Network

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