21-04-2012, 11:10 AM
THE IMPLICATIONS OF WiMAX FOR COMPETITION AND REGULATION
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INTRODUCTION TO WIMAX
In telecommunications, one key factor in the success of given technology is timing. Skypes Voice
over Internet Protocol (VoIP) service has proven extremely popular but a similar VoIP client (CoolTalk)
that was bundled with early Netscape browsers in 1996 never caught on in great numbers. Much of the
technology behind VoIP remains the same but the public is much more willing to embrace the technology
now, nearly 10 years after it first appeared as a consumer Internet application.
Wireless broadband may be on the verge of a similar shift of acceptance with the emergence of
WiMAX (Worldwide Interoperability for Microwave Access) and its supporting technologies. Wireless
technologies have been available for years to establish long-distance Internet connections but equipment
prices were too high for the market to bear, leaving the technologies under-utilised. The tide may again be
shifting towards wireless broadband with the promise of low-cost, but powerful WiMAX equipment.
The WiMAX Forum has estimated that new WiMAX equipment will be capable of sending highspeed
data over long distances (40 Mbit/s over 10 kilometres in a line-of-sight fixed environment). At these
distances, WiMAX equipment could play a key role in helping bridge the digital divide as long-distance
wireless links could help deliver higher-speed access to areas traditionally out of reach of fixed-line
networks. WiMAX has also been attracting particular interest as a disruptive technology that could impact
fixed and mobile markets, in both their voice and data segments. Finally, WiMAX has also been tapped as
a potential key component of next-generation converged or ubiquitous networks.
WiMAX and IEEE 802.16
The technologies and standards behind WiMAX are those developed by the IEEE 802.16 Working
Group dealing with broadband wireless access. The group began developing technologies for wireless
metropolitan networks in 2000, publishing its first standard in April 2002 for equipment operating in the
10-66 GHz frequency band.2 This initial range of frequencies requires line-of-sight connectivity and large
towers, making it more suitable for high bandwidth backhaul. The group then extended the standard (IEEE
802.16a) for use in the lower frequency range of 2-11 GHz. This new frequency range allows for non-lineof-
sight connectivity and should be popular given certain license-exempt bands in that range.
Reach and speeds
The technologies behind WiMAX are better suited for larger geographic networks than Wi-Fi. Figure
1 shows a breakdown of common network sizes, with the technologies behind WiMAX covering the two
largest geographic areas wide area networks (WAN) and metropolitan area networks (MAN). WANs
have traditionally been covered by two wireless technologies, national mobile networks and satellite
providers. In contrast, wireless technologies have not found widespread adoption in the MAN coverage
area of 50 kilometres. WLAN technologies, such as those underlying Wi-Fi, have been very successful at
delivering data over a range of 150 metres and Bluetooths technologies provide access within 10 metres.
WiMAX overlap with other technologies
One of the most interesting elements of WiMAX, and the technologies behind it, is how they overlap
with many existing communication networks it terms of coverage and speed. First, WiMAX is seen as a
competitor to fixed broadband connections such as digital subscriber lines (DSL), cable modem, and fibre
optic technologies. WiMAX equipment will likely be able to provide fixed wireless access comparable to
lower-speed DSL connections (e.g. 256 kbit/s) over a wide area. DSL, cable and fibre will be able to
provide much faster connections when wired infrastructure is already in place but WiMAX equipment may
still be competitive with lower-speed wired connections. The lower per-user speeds of WiMAX equipment
will likely rule out WiMAX connections for high-bandwidth consumer applications such as High
Definition Television (HDTV) transmission.
Luxembourg
Luxembourg has started a consultation on the situation of wireless networks. Previously
Luxembourgs regulator (ILR) assigned licences to WLL-operators in two frequency bands, 3.5 GHz and
26 GHz with specific restrictions meant to avoid interference. The new consultation is also considering the
5.8 GHz band and has been included as part of the discussions within the European Conference of Postal
and Telecommunications Administrations (CEPT).82
Netherlands
The Dutch operator Enertel’s has a pre-WiMAX service available for businesses in the
Rotterdam/Rijnmond region using the 3.5 GHz range. The service will be extended to Amsterdam, The
Hague, Utrecht and Eindhoven, and is anticipated to have reached national coverage by late 2005.83 The
results of the pilot project have been successful.
New Zealand
New Zealand created the rights for two 3.5 GHz radio licenses for fixed wireless use in 2001. The
allocation proposals for the spectrum bands were published in March 2004, with priority given to
telecommunication suppliers that are part of the Provincial Broadband Extension Project (PROBE).84 The
use of the 3.5 GHz range means that WiMAX equipment could be easily used by providers once it is
certified.
Spain
The Spanish wireless ISP Iberbanda has been operating an LMDS network in Spain since 2001 in the
3.5 GHz range in 72 cities. Recently Iberbanda announced they will be installing pre-WiMAX equipment
in two Spanish regions, Andalusia and Catalonia. The LMDS network provides services to businesses but
the implementation of pre-WiMAX equipment is meant to lower prices for connections to consumers and
small businesses.85 The upgrade of the Iberbanda network to pre-WiMAX equipment is not surprising
given the much higher costs of proprietary LMDS equipment.
Switzerland
Switzerland has opened a public consultation on the licensing of broadband wireless technologies in
an effort to determine the demand for licences in the market and the most effective way to allocate them.86
The results of the consultation should be made public in the summer of 2005. Shortly thereafter, ComCom
will decide the number of licences and how they will be awarded. For the moment, BWA technologies
would be limited to licensed usage in the 3.4 to 3.6 GHz frequency bands. Licence-exempt use could be
possible in the 5.7 GHz frequency bands with restrictions on power levels.