Why is WiMAX important for mobile broadband wireless?
Mobile broadband wireless or 3G has enjoyed two largely consistent standards,
those being the code division multiple access (CDMA) based approach with its
evolution data only (EVDO) and the universal mobile telecommunications system (UMTS)
and its faster upgrade high speed downlink packet access (HSDPA), which in
particular has gained some deployments in the past year. However, these
technologies were slow to mature into economically viable and affordable
iterations. The EVDO schema is now in a Revision A version which improves
bandwidth considerably. Verizon and Sprint are the first US based carriers
to begin wide deployment. Sprint currently has deployed most of its
markets with 3G as has Verizon. The bandwidth limitations have been
significant and the adoption by carriers, particularly those utilizing GSM
technology here in the US has been very slow (as they are essentially
incompatible technologies).
Newer broadband UMTS (universal mobile telecommunications system) systems that
are GSM compatible have seen some traction with AT&T recently in the US, with
the bulk of gains happening overseas, particularly in Europe. The sheer
cost factor of the technology relative to its native spectral efficiency has not
been conducive to adoption either. Estimates for the nation's cellular
carriers to build a comprehensive 3G network have ranged as high as $50 Billion.
But clearly the momentum is now on the side of 3G simply due to carrier needs to
improve revenue streams and also due to innovations in handsets that are driving
the public hunger for broadband applications. AT&T, for example, stated
its surprise at how much higher the use of graphical and video downloads were
for users of its new Apple iPhone device, which has recently been introduced in
a 3G version. Carriers are scrambling to produce higher-capacity broadband
systems.
Mobile WiMAX offers a multi-spectrum standard with a better broadband technology
concept that can significantly reduce costs, improve spectral efficiency and
deliver profitable services. The growth curve of the technology, partly
due to the large number of chip and radio vendor firms driving the technology,
should provide a much higher innovation curve for WiMAX. Internationally,
broadband mobile wireless does enjoy greater acceptance. Many companies
are inherently more comfortable using a 3G upgrade from the GSM side due to the
similarities of the technology. The efficiency and cost savings that WiMAX
are already driving as we await the final merger of Sprint and Clearwire's 2.5
GHz spectrum assets are affecting other technologies, particularly LTE, which
has numerous similarities between the two technologies.
