14-11-2012, 02:16 PM
Spectrum Analysis - The Critical Factor in BWA/WiMAX versus 3G
[attachment=39428]
KEY FINDINGS
The low cost of the BWA/WiMAX spectrum compared to 3G is a clear driver for
service providers to enter the field of wireless services with BWA/WiMAX. This
difference in cost/Hz is particularly significant in Europe, where the average 3G
spectrum cost/Hz is 1000 times higher than the average BWA/WiMAX spectrum
cost/Hz. The proportion is smaller in other regions, but remains in favor of
BWA/WiMAX.
It is important to highlight that the aggregate 3G spectrum is in lower frequency
bands than the aggregate BMA/WIMAX spectrum. This shifts the cost/Hz on a
deployed equipment basis, due to the requirement for at least twice the
equipment for each doubling of the frequency. However, even with that
adjustment it is clear that the BMA/WIMAX spectrum is more economical,
particularly when it is mapped to trends of devices to mitigate spectrum bands
and modulation schemes.
The much lower cost of BMA/WIMAX licenses1 resulted in a high number of
licensees, with a total of 721 and 106 license holders for BWA/WiMAX and 3G,
respectively. However, the average amount of spectrum owned by a carrier is
similar for the two technologies.
Regional Analysis
Number of BWA/WiMAX Licenses – by Region / by Frequency
A total accumulated 721 BWA/WiMAX licenses exist today, net of licenses
returned or resold in the countries surveyed. North America is by far the leading
region in terms of number of BWA/WiMAX licenses awarded, with a total of 394,
against 186 licenses in Europe, 97 licenses in the APAC region, and 49 licenses
in the CALA region. Note that EBS (Educational Broadband Services) licenses
were not included in the USA number because they are not primarily allocated for
commercial applications.
Number of BWA/WiMAX Licenses by Coverage Area
Our research also revealed that across the world, most BWA/WiMAX licenses
are regional licenses. North America is a perfect example, as 100% of its
BWA/WiMAX licenses are regional, against 78% in Europe and 71% in the CALA
region. This situation did not prevent large players such as Sprint-Nextel from
consolidating regional licenses to achieve a national footprint.
However, those numbers do suggest that BWA/WiMAX markets may become
more fragmented and less predictable than Cellular/3G+.
BWA/WiMAX Cost – Amount of Spectrum
BWA/WiMAX Amount of Spectrum per Carrier by Region (MHz)
In terms of total amount of BWA/WiMAX spectrum acquired by license holders by
region, the carriers located in the three leading regions (North America, Europe,
and CALA) acquired a quite similar amount of spectrum, at 49 MHz (North
America), 49 MHz (CALA) and 42 MHz (Europe). Note that in Canada, the
average spectrum acquired by license holders is much higher (77 MHz) than in
the USA (24 MHz). This can be explained by the amount of spectrum in Canada
varying dramatically from one license holder to another (from 30 to 150 MHz). On
the other hand, the APAC region is not far behind, with an average of 28 MHz
per carrier. In Brazil and Mexico, we only took into consideration the 3.5 GHz
band, due to the large variation of spectrum acquired in the 2.3-2.7 GHz band.
[attachment=39428]
KEY FINDINGS
The low cost of the BWA/WiMAX spectrum compared to 3G is a clear driver for
service providers to enter the field of wireless services with BWA/WiMAX. This
difference in cost/Hz is particularly significant in Europe, where the average 3G
spectrum cost/Hz is 1000 times higher than the average BWA/WiMAX spectrum
cost/Hz. The proportion is smaller in other regions, but remains in favor of
BWA/WiMAX.
It is important to highlight that the aggregate 3G spectrum is in lower frequency
bands than the aggregate BMA/WIMAX spectrum. This shifts the cost/Hz on a
deployed equipment basis, due to the requirement for at least twice the
equipment for each doubling of the frequency. However, even with that
adjustment it is clear that the BMA/WIMAX spectrum is more economical,
particularly when it is mapped to trends of devices to mitigate spectrum bands
and modulation schemes.
The much lower cost of BMA/WIMAX licenses1 resulted in a high number of
licensees, with a total of 721 and 106 license holders for BWA/WiMAX and 3G,
respectively. However, the average amount of spectrum owned by a carrier is
similar for the two technologies.
Regional Analysis
Number of BWA/WiMAX Licenses – by Region / by Frequency
A total accumulated 721 BWA/WiMAX licenses exist today, net of licenses
returned or resold in the countries surveyed. North America is by far the leading
region in terms of number of BWA/WiMAX licenses awarded, with a total of 394,
against 186 licenses in Europe, 97 licenses in the APAC region, and 49 licenses
in the CALA region. Note that EBS (Educational Broadband Services) licenses
were not included in the USA number because they are not primarily allocated for
commercial applications.
Number of BWA/WiMAX Licenses by Coverage Area
Our research also revealed that across the world, most BWA/WiMAX licenses
are regional licenses. North America is a perfect example, as 100% of its
BWA/WiMAX licenses are regional, against 78% in Europe and 71% in the CALA
region. This situation did not prevent large players such as Sprint-Nextel from
consolidating regional licenses to achieve a national footprint.
However, those numbers do suggest that BWA/WiMAX markets may become
more fragmented and less predictable than Cellular/3G+.
BWA/WiMAX Cost – Amount of Spectrum
BWA/WiMAX Amount of Spectrum per Carrier by Region (MHz)
In terms of total amount of BWA/WiMAX spectrum acquired by license holders by
region, the carriers located in the three leading regions (North America, Europe,
and CALA) acquired a quite similar amount of spectrum, at 49 MHz (North
America), 49 MHz (CALA) and 42 MHz (Europe). Note that in Canada, the
average spectrum acquired by license holders is much higher (77 MHz) than in
the USA (24 MHz). This can be explained by the amount of spectrum in Canada
varying dramatically from one license holder to another (from 30 to 150 MHz). On
the other hand, the APAC region is not far behind, with an average of 28 MHz
per carrier. In Brazil and Mexico, we only took into consideration the 3.5 GHz
band, due to the large variation of spectrum acquired in the 2.3-2.7 GHz band.