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“WiMAX – Hope or Hype”

“WiMAX – Hope or Hype”

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“WiMAX – Hope or Hype”

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  1. “WiMAX – Hope or Hype” ARABCOM 2004 Hans Jürgen Tscheulin Beirut June 2004

  2. 1. Theses on Broadband Access 2. Broadband Penetration in ME - Comparison 3. Overview on Broadband Access Solutions 4. What is IEEE 802.16 (WiMAX) ? 5. Main Features of wireless MAN Standard IEEE 802.16 6. IEEE 802.16 Applications 7. Should Telcos take WiMAX on their Radar? Content

  3. Thesis 1 Classical Broadband Access solutions are not able to solve the „Digital Divide“ Thesis 2 „Digital Divide“ is in real words a „Broadband Access Divide“ Thesis 3 New Broadband Access solutions are enteringthe market : simple, fixed and mobile, secure, with large bandwidth, cheap, easy to implement 1. Theses on Broadband Access The development of broadband world is depending on availability of simple, cheap and easily deployable broadband access facilities

  4. Broadband Penetration in ME - Comparison2.1 Fixed vs. Mobile The leading function of mobile is also obvious in Middle East. Exceptions will disappear Source: ITU

  5. Broadband Penetration in ME - Comparison2.2 Broadband Road Status There is presently a low or “zero” level of Broadband penetration in Middle East compared to Asia, Europe or US Source: ITU

  6. Low medium upper high • Broadband Penetration in ME - Comparison2.3 The new ITU Index Shortage of infrastructure is the main reason for the low broadband penetration in Middle East DAI-range that indicates shortage of infrastructure Source: ITU

  7. NarrowbandCopper Conventional access method, high investment, dial-in into Internet via analog or ISDN is commonly used method. Too slow and limited bandwidth Could play a complementary role to terrestrial DSL, but still expensive and difficult in partnering, sales and distribution Key access system for broadband Internet, need copper wire lines or WLAN to reach customer premises (mass market or business customers) Terrestrial DSL Satellite DSL Large enthusiasm in Europe is over. Operators cannot afford the huge In- vestments for broadband Internet; meanwhile DSL penetrates the markets CATV-Cable All WLL operators offering broadband Internet disappeared from the market inEurope because of investment, high retail price and customer reluctance Regionalization Wireless Local Loop Mobile broadband services are not gaining mass markets and broadband ca-pability is very limited. Hugh investments and probable high retail price Mobile Wireless Is no longer existing, all programs are cancelled Powerline Very scattered market, low security, limited coverage, large bandwidth,licensing constraints, roaming problems not solved. Wireless LAN 3. Overview on Broadband Access Solutions Many Broadband Access Types are not really serious players in the mass market race Wireless MAN (WiMAX) ? ? ? ? ? ? ?

  8. Narrowband Copper Terrestrial DSL Wirless LocalLoop Mobile Broad-band Powerline ? ? ? ? ? ? ? WLAN 100 200 300 400 500 600 700 US $ 3. Overview on Broadband Access Solutions Typical provider investments for Broadband Access solutions tend to be in the range from 300 – 500 US$ per subscriber Satellite DSL CATV-Cable All figures are without investment for customer premises equipment

  9. 4. What is IEEE 802.16 (WiMAX) ? • Buzz words like “WiMAX threatens DSL”, “WiAMX pushes low-cost MANs”, WiMAX unwires the world” are in the market • Fact is: WiMAX (Worldwide Interoperability for Microwave Access) is an industry trade organization formed by leading equipment and component companies that promotes and certifies compatibility and interoperability of broadband wireless access that conforms to the IEEE 802.16 and ETSI HIPERMAN standards • The 802.16a standard is a wireless metropolitan area network (MAN) technology that will provide a wireless alternative to cable, DSL and T1/E1 for last mile broadband access. It will also be used as complimentary technology to connect 802.11 hot spots to the Internet • IEEE 802.16a • has both licensed and license-exempt frequency bands • is designed for subscriber density • is designed for metropolitan performance • is designed for carrier class operation • is designed for distance • complements 802.11 by creating a complete MAN-LAN solution

  10. 4. What is IEEE 802.16 (WiMAX) ? IEEE 802.16 is newly adopted standard for wireless Metropolian Area Networks which was harmonized with ETSI HiperMAN WAN 3GPP, EDGE (GSM) IEEE 802.20 (proposed) MAN IEEE 802.16 WirelessMAN ETSI HiperMAN & HIPERACCESS LAN ETSI HiperLAN IEEE 802.11 WirelessLAN PAN ETSI HiperPAN IEEE 802.15 Bluetooth Source: WiMAX Forum

  11. WiMAX WLAN 4. What is IEEE 802.16 (WiMAX) ? • There is an overlap in broadband access between WLAN IEEE 802.11, WiMAX IEEE 802.16 and mobile networks for low mobility broadband usage 100 10 1 0.1 0.01 Radio Transmission Speed (Mbps) WirelessLAN EDGE EDGE Wireless MAN 3G GPRS GPRS GSM Reach Office Hotspots Urban Sub- Country- Home Urban Side Low Mobility Unlimited Mobility

  12. 5. Main Features of wireless MAN Standard IEEE 802.16 • Whilst WLAN 802.11 is restricted to unlicensed ISM and UNII bands, 802.16 is designed to use licensed and unlicensed bands UNII International Licensed International Licensed US Licensed Japan Licensed ISM ISM 2 3 4 5 GHz 1 ISM: Industrial, Scientific & Medical Band – Unlicensed band UNII: Unlicensed National Information Infrastructure band – Unlicensed band Source: WiMAX Forum

  13. 5. Main Features of wireless MAN Standard IEEE 802.16 • The recently adopted standard 802.16a is the most interesting part

  14. WiMAX Backhaul for Business 6. IEEE 802.16 Applications Point to Point BACKHAUL Non Line of Sight Point to Multi-point 802.11 Telco Core Network or Private (Fiber,Satellite) Network FRACTIONAL E1/T1 for SMALL BUSINESS INTERNET BACKBONE Internet Backbone E1/T1+ LEVEL SERVICE ENTERPRISE Source: WiMAX Forum Courtesy of Intel Corporation 2003

  15. WiMAX Consumer Last Mile 6. IEEE 802.16 Applications Non Line of Sight Point to Multi-point OUTDOOR CPE Point to Point BACKHAUL 802.11 802.11&802.16 INDOOR CPE Telco Core Network or Private (Fiber, Satellite) Network INTERNET BACKBONE Internet Backbone Source: WiMAX Forum Courtesy of Intel Corporation 2003

  16. WiMAX Nomadic / Portable 6. IEEE 802.16 Applications Non Line of Sight Point to Multi-point Line of Sight BACKHAUL 802.16 802.16 Telco Core Network or Private (Fiber) Network 802.16 PC Card Laptop Connected Through 802.16 SEEKS BEST CONNECTION INTERNET BACKBONE 2 to 3 Kilometers Away Source: WiMAX Forum

  17. 8. Should Telcos take WiMAX on their Radar? The answer is definitely : “YES” The new standard offers full interoperability for all kinds of equipments. But: • Mass market is expected to start in 2005/2006. Interoperability offers the chance to lower equipment price significantly • Telcos should execute “life” field trial and create rough business plan based incorporating trial results. A main aspect is the customer premises equipment. It should be simple, low-cost and available. The proof is not yet obvious. The new standard has the potential to incorporate voice and video. But: • Voice solutions are still different from “simple” broadband internet access. Low-cost customer equipment for VoIP is not yet in the market The new standard will encompass proprietary LMDS and WLL solutions. But: • Telcos should reconsider or stop purchasing proprietary LMDS and WLL procurement programs in the light of a standardized and interoperable system for broadband access • Telcos should lobby early for the respective licensed frequency bands with their regulator The new standard can serve large sub-urban areas with Broadband Internet Access. But: • The new standard could theoretically cover large areas. The system performance is higher within an area of up to 6 miles. The system design is to serve mass market with appropriate bandwidth per customer • The standard has the potential to serve as well country-side areas and scarcely populated areas. The low-cost proof is not yet obvious

  18. Your Contact Hans Jürgen Tscheulin Managing Partner Detecon International GmbH Oberkasseler Strasse 2 D-53227 Bonn (Germany) Phone: +49 228 700 2100 Fax: +49 228 700 2107 Mobile: +49 175 297 4109 e-Mail: