WiMAX: Market Update A Market Study January 2008
WiMAX: Market Update A Market Study
January 2008 Version Report Number: 012008-02 iGR 12400 W. Hwy. 71 Suite 350 PMB 341 Austin TX 78738 www.iGR-Inc.com
Table of Contents Executive Summary.......................................................................................................................1 Methodology....................................................................................................................................2 About iGR.................................................................................................................................2 Definitions ........................................................................................................................................3 Overview of WiMAX Standards and Spectrum..........................................................................5 802.16e.....................................................................................................................................7 IMT-2000...........................................................................................................................7 WiBro.................................................................................................................................7 802.16m....................................................................................................................................8 WiMAX Forum .........................................................................................................................8 WiMAX Applications ...............................................................................................................9 Backhaul ...........................................................................................................................9 Cable and DSL...............................................................................................................10 Cellular ............................................................................................................................11 WiMAX Operator Strategies .......................................................................................................13 WiSOA....................................................................................................................................13 AT&T.......................................................................................................................................13 Axtel ........................................................................................................................................13 British Telecom......................................................................................................................14 Horizon Wi-Com....................................................................................................................14 NeckarCom............................................................................................................................14 NTT DoCoMo ........................................................................................................................14 KDDI........................................................................................................................................15
Quoting information from an iGR publication: External—Any iGR information that is to be used in press releases, sales presentations, marketing materials, advertising, or promotional materials requires prior written approval from iGR. iGR reserves the right to deny approval of external usage for any reason. Internal—Quoting individual sentences and paragraphs for use in your company’s internal communications activities does not require permission from iGR. The use of large portions or the reproduction of any iGR document in its entirety does require prior written approval and may have some financial implications. Copyright 2008 iGR. Reproduction is forbidden unless authorized. For information please contact Iain Gillott (512) 263-5682.
Rogers Wireless/Bell Canada .............................................................................................15 Sprint Nextel...........................................................................................................................15 Telmex ....................................................................................................................................16 Infrastructure Vendors .................................................................................................................17 Alcatel-Lucent ........................................................................................................................17 Alvarion....................................................................................................................................17 Aperto Networks....................................................................................................................18 Cisco .......................................................................................................................................18 Fujitsu......................................................................................................................................19 Motorola..................................................................................................................................19 Nokia Siemens Networks.....................................................................................................20 Nortel.......................................................................................................................................20 Samsung ................................................................................................................................21 Subscriber Equipment .................................................................................................................22 Airspan....................................................................................................................................22 ASUSTek ...............................................................................................................................22 Intel..........................................................................................................................................23 Motorola..................................................................................................................................23 Navini ......................................................................................................................................23 Samsung ................................................................................................................................24 WiNetworks............................................................................................................................24 ZTE .........................................................................................................................................25 ZyXEL .....................................................................................................................................25
Quoting information from an iGR publication: External—Any iGR information that is to be used in press releases, sales presentations, marketing materials, advertising, or promotional materials requires prior written approval from iGR. iGR reserves the right to deny approval of external usage for any reason. Internal—Quoting individual sentences and paragraphs for use in your company’s internal communications activities does not require permission from iGR. The use of large portions or the reproduction of any iGR document in its entirety does require prior written approval and may have some financial implications. Copyright 2008 iGR. Reproduction is forbidden unless authorized. For information please contact Iain Gillott (512) 263-5682.
Executive Summary WiMAX, an acronym for Worldwide Interoperability for Microwave Access, is a standardsbased technology enabling the delivery of wireless broadband access as an alternative to wired broadband such as cable and DSL. It’s also a brand name for technologies based on the Institute for Electrical and Electronics Engineers (IEEE) 802.16 and European Telecommunications Standard Institute (ETSI) HiperMAN standards. WiMAX is also often referred to as broadband wireless MAN (W-MAN), an acronym for Wireless Metropolitan Area Network. Although WiMAX is based on standards that are the responsibility of ETSI and IEEE, the WiMAX Forum was created in 2001 as an independent, non-profit trade association to promote the technology and oversee its certification. The forum also creates profiles, which are requirements that go beyond the basic 802.16 standards. The forum currently has 533 member companies, the vast majority of which are vendors. The WiMAX Forum currently estimates that more than 300 operators in over 65 countries have deployed mobile WiMAX commercial, pilot and trial networks. WiMAX bears watching by makers of wired and wireless equipment, as well as by providers of wired and wireless services for the consumer, enterprise and government markets. It also bears watching by PC vendors because the technology is being integrated into laptops and other computing devices. However, WiMAX’s competitive position will depend on how quickly it can develop the cost structure and ecosystem necessary to grab market share from incumbents. A competitive cost structure also will be a major factor in WiMAX’s ability to sell into less developed, price-sensitive markets such as Africa and Latin America. WiMAX’s ever-growing vendor base is a plus in terms of cost structure: with that many vendors, competition will be fierce, putting enormous pressure on price. This creates a snowball effect; the more the price drops, the more service providers that can make a business case for using WiMAX. More deployments mean more equipment and device volume, which in turn drives down prices even more. To displace incumbent technologies or provide competition to other broadband mobile technolgoies, WiMAX must also be able to demonstrate that it can support not only the same applications and features, but more of them. It also must be able to show that it’s capable of delivering quality of service (QoS) and reliability at least on par with existing technologies. This report provides an overview of WiMAX in terms of standards development, spectrum and applications. It also includes profiles of select vendors in terms of product offerings and current deployments. iGR plans to publish a forecast for the WiMAX subscriber market later in the first quarter of 2008.
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Methodology This overview of the worldwide WiMAX market was compiled using public information released by companies, as well as statements made by the companies in reliable media publications. Information was also taken from the WiMAX Forum website. iGR information was used as appropriate.
About iGR iGR, formerly iGillottResearch Inc., is a market strategy consultancy focused on the wireless and mobile communications industry. Founded by Iain Gillott, one of the wireless industry's leading analysts, we research and analyze the impact new wireless and mobile technologies will have on the industry, on vendors' competitive positioning and on our clients' strategic business plans. Our clients typically include service providers, equipment vendors, mobile Internet software providers, wireless ASPs, mobile commerce vendors, and billing, provisioning and back office solution providers. We offer a range of services to help companies improve their position in the marketplace, clearly define their future direction and, ultimately, improve their bottom line:
Consulting. Consulting projects can, of course, take many forms and can be used to address many needs within the business. iGR offers a range of services specifically for organizations executing or considering wireless and mobile communications strategies.
Honoraria. We present on a variety of wireless and mobile industry subjects and are available for custom on-site speaking engagements or to chair conferences and industry events.
Flexible Subscription Service. Our improved version of the traditional subscription service has a twist: rather than ignore our clients, we will incorporate their feedback, via the Web, directly into our research schedule. The topics we research will be the ones our clients have indicated as priorities.
A more complete profile of the company can be found at www.iGR-inc.com.
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Definitions 3G (Third Generation): A new standard that promises to offer increased capacity and high-speed data applications up to 2 megabits per second. 3G will integrate pico-, microand macrocellular technology and allow global roaming. It is the next generation of wireless technology beyond personal communications services. The World Administrative Radio Conference assigned 230 megahertz (MHz) of spectrum at 2 GHz for multi-media 3G networks. These networks must be able to transmit wireless data at 144 kilobits per second (kbps) at mobile user speeds, 384 kbps at pedestrian user speeds, and 2 megabits per second in fixed locations. The International Telecommunication Union seeks to coordinate 3G standards through its International Mobile Telecommunications-2000 project. 802.11: A family of specifications for wireless local area networks (WLANs) developed by a working group of the Institute of Electrical and Electronics Engineers (IEEE). There are currently four specifications in the family: 802.11, 802.11a, 802.11b and 802.11g. 802.11e: 802.16e is the mobile version of 802.16a and is designed to provide mobility for fixed wireless networks in the 2 GHz to 6 GHz licensed bands, and it will also allow for portable WiMAX devices to use broadband wireless networks. 802.16: 802.16 deals with the deployment of 10 to 66 GHz wireless metropolitan area networks as an economical method of high-speed "last-mile" connection to public networks. The specifications address the standards for fixed broadband wireless access systems employing a point-to-multipoint architecture. 802.16a: 802.16a provides a new standard for broadband wireless metropolitan area network for fixed broadband wireless access. It is for non-line-of-site access in licensed and unlicensed frequencies between 2 GHz and 11 GHz. The standard is an extension of the global IEEE 802.16 WirelessMAN standard for 10 to 66 GHz. 802.16c: Developed for wireless networks operating in the 10 GHz and 66 GHz licensed frequencies, 802.16c is a set of clarifications and updates to the 802.16 family of wireless communications specifications for metropolitan area networks. 802.16d: 802.16d combines the revisions to 802.16a and 802.16c into one base standard. 802.16d increases the range among multipath and supports MIMO antennas. 802.16e: The 802.16e WiMAX standard specifies a system for combined fixed and mobile broadband wireless access supporting subscriber stations moving at vehicular speeds in licensed bands under 6 GHz. 802.16m: The next generation standard beyond 802.16e which will become adopted by the WiMAX Forum once the standard is completed in 2009. 802.16m is considered a strong candidate for 4G technology. 802.20: Known as Mobile Broadband Wireless Access, 802.20 is still in the early stages of development; 802.20 deals with licensed bands in the 500 MHz to 3.5GHz range. Some see 802.20 as the biggest competitor to 3G, as it allows for wireless high speed access at rates that rival cable modems and DSL connections at speeds of up to 150 MPH. Page 3 Copyright 2008 iGR
CDMA (code division multiple access) - A spread spectrum approach to digital transmission. With CDMA, each conversation is digitized and then tagged with a code. The mobile phone is then instructed to decipher only a particular code to pluck the right conversation off the air. The process can be compared in some ways to an Englishspeaking person picking out in a crowded room of French speakers the only other person who is speaking English. cdma2000 (code division multiple access) - A third-generation wireless technology proposal submitted to the International Telecommunication Union, which is based on the IS-95, or cdmaOne, standard. Also known as CDMA 1x, CDMA 1x RTT and HDR (high data rate). EDGE (enhanced data rates for global, or GSM, evolution) - An advanced technology for GSM and TDMA networks that may offer wireless data access speeds of up to 384 kilobits per second in end-user devices. GPRS (General Packet Radio Service) - A GSM data transmission technique that does not set up a continuous channel from a portable terminal for the transmission and reception of data, but transmits and receives data in packets. It makes very efficient use of available radio spectrum, and users pay only for the volume of data sent and received. GSM (global system for mobile communications) - A digital cellular or PCS network used throughout the world. GPRS (general packet radio services) - A 2.5-generation technology being implemented in GSM networks that may offer wireless data access speeds of up to 144 kilobits per second in end-user devices. PC Cards – Devices that are used inside laptops or PCs that allow the device to transmit data over wide area networks. TDMA (time division multiple access) - A method of digital wireless communications transmission allowing a large number of users to access in sequence a single radio frequency channel without interference by allocating unique time slots to each user within each channel. UMTS (Universal Mobile Telecommunications System) - Europe's approach to standardization for third-generation cellular systems. W-CDMA (wideband code division multiple access) - The third generation standard offered to the International Telecommunication Union by GSM proponents. Wireless - Using the radio-frequency spectrum for transmitting and receiving voice, data and video signals for communications. Wireless Internet - An RF-based service that provides access to Internet e-mail and/or the World Wide Web from a user’s mobile device. Also known as mobile Internet.
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