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Wi-Fi, WiMAX, Why Care?. Sandy Teger and David J. Waks System Dynamics Inc. sandy@system-dynamics.com . Wi-Fi. LAN. PAN. MAN. WAN. Wireless Technologies for Different Ranges. WiMAX. 3G. UWB/ZigBee/Bluetooth. Telephony: Shift from fixed to personal.

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wi fi wimax why care

Wi-Fi, WiMAX, Why Care?

Sandy Teger and David J. WaksSystem Dynamics Inc.sandy@system-dynamics.com

wireless technologies for different ranges






Wireless Technologies for Different Ranges




telephony shift from fixed to personal
Telephony: Shift from fixed to personal

Source: Personal Broadband Industry Association

telephony spending shift to wireless
Telephony Spending Shift to Wireless
  • Balance of spending for telephony has now moved to wireless
  • Wireless telephony is largest share of consumer wallet - and only one growing
  • Is broadband next?

Source: TNS Telecoms, 2nd Qtr 2004

personal broadband next
Personal Broadband Next

Source: Personal Broadband Industry Association

solutions for personal broadband deploying now
Solutions For Personal Broadband Deploying Now
  • Wi-Fi Hotspot Bundles
    • SBC: DSL adder for $1.99
    • Dual Wi-Fi/cellular handsets from SBC/Cingular for hand-off to hotspots and “roam to home”
  • “Pre-WiMAX” Risk From 2.5 GHz band holders
    • Clearwire and Nextel already launched
  • 3G: Verizon, Sprint
  • Municipal wireless using Wi-Fi
    • Chaska, MN; Cerritos, CA; Philadelphia, PA; …
wimax 802 16
WiMAX – 802.16
  • Broadband Wireless Access – Metropolitan Area Networks
  • Fixed (and nomadic) access: 802.16-2004 (8/2004)
  • Mobile access: 802.16e (expected 5/2005)
  • Maximum cell size ~30 miles, 1.5 to 5 more typical
  • Maximum speed 100 Mbps (64QAM/20 MHz)
wimax great expectations
WiMAX: Great Expectations
  • Addresses deficiencies of previous BBW
    • Interoperability
    • Cost of base stations and CPE
    • Shared bandwidth up to 100 Mbps
    • Line of sight not required
    • Coverage 3-5 miles, more like cellular
    • Licensed and unlicensed spectrum
  • Many DOCSIS-like features including QoS
  • Milestone to “broadband everywhere”
wimax bandwagon effect
WiMAX Bandwagon Effect
  • WiMAX Forum: ~160 members and growing
    • Complete value chain
    • Many chip companies, including Intel, Fujitsu
    • Many major equipment companies, including Motorola, Alcatel, Siemens
    • Many service providers, including BT, France Telecom and Qwest
  • Analogous to Wi-Fi Alliance for 802.11
    • Product certification through formal conformance and interoperability testing against “profiles”
    • Promotion, promotion, promotion
wimax status
WiMAX Status
  • “Pre-certification” products shipping now
    • Based on earlier 802.16a standard
    • Expensive base stations and CPE – enterprise focus
  • Certified products in 2005
    • Based on 802.16-2004
    • Licensed 2.5 GHz (U.S.) and 3.5 GHz (ROW)
    • License-free 5.8 GHz
    • “Plugfest” interoperability testing started 2004
    • Formal certification testing ~1H05
  • “Mobile WiMAX” expected late 2006
    • CPE bundled in laptops by 2007
other mobile broadband wireless technologies deploying now
Other Mobile Broadband Wireless Technologies Deploying Now
  • FCC just restructured 2.5 GHz band from video to broadband service
  • Band holders not waiting for WiMAX
    • Nextel running large-scale market trial in Raleigh-Durham
    • Clearwire launched in Jacksonville, FL and St. Cloud, MN
    • Sprint also owns spectrum, deferring decision
nextel in raleigh durham
Nextel in Raleigh-Durham
  • Flarion “Flash-OFDM” technology
  • Mobile within RDU area
  • Downlink 1.5 Mbps (burst to 3Mbps)
  • Service starts at $34.99 (750/200)
  • Combo Wi-Fi/Flarion device: Netgear & D-Link
  • Developing technical & market knowledge
clearwire in jacksonville fl
Clearwire in Jacksonville, FL
  • NextNet “pre-WiMAX” technology
  • “Up to 1.5 Mbps”
  • Starts at $24.99 (512/128)
  • Easy self-install
  • Licenses in >80 markets
metro wi fi
Metro Wi-Fi
  • High-volume, low cost, low margin
  • Based on off-the-shelf consumer Wi-Fi adapters
  • Not “carrier class” service
  • Disruptive to MSOs?
wi fi gaps being filled

Spectrum usage




Roaming performance


Mesh techniques


Connection persistence



802.11i/WPA, WPA2


802.11h, 802.11k




Wi-Fi Gaps Being Filled


city wide hot zones
City-wide “Hot Zones”
  • Already deployed in some smaller cities
  • Big cities preparing to deploy soon
  • Public safety a major driver, “digital divide” another
  • Near-term threat and opportunity for MSOs
rapid pace of innovation and market entry
Mesh Networking

Tropos Networks





Smart Antennas


5G Wireless

Rapid Pace of Innovation and Market Entry
city wide wi fi in chaska mn
City-Wide Wi-Fi in Chaska, MN
  • City operated, 16 square mile coverage area
  • Public safety, low-cost residential broadband service
  • 7500 homes passed, 1100 pre-registered
  • 200 cells, <$500,000 CapEx
is metro wi fi disruptive
Is Metro Wi-Fi Disruptive?
  • “Disruptive Technologies”*
    • Simple, cheap
    • Target lower performance markets
    • Commercialized in emerging market
    • Fast technological progress
  • Subsequently become performance competitive against established products

* The Innovator’s Dilemma,Clayton M. Christensen

is your city next
Is Your City Next?


Grand Haven