US Carriers Eager for Mobile WiMAX

While WiMAX has been around for several years, it has seen slow adoption here in the United States. The reasoning behind this, says Aperto Networks' director of product management Dean Chang, is business decisions on behalf of who owns the WiMAX spectrum.

In an interview with BetaNews on the cusp of the CTIA Wireless conference in Las Vegas, Chang said it is the wireless carriers who own much of the spectrum -- namely Sprint Nextel and Verizon -- and they are holding off for the mobile implementations of the technology. That isn't due until 2007, he says.

However, the promise of mobile WiMAX is a compelling reason for these companies to wait. Instead of the slow uptick in data speeds currently offered through the migration to 3G, mobile WiMAX would offer an immediate boost to several megabits per second -- true mobile broadband.

"You could call it 4G," Chang explained. He said his company, Aperto Networks, sees the promise and likely lucrative business that mobile WiMAX brings. The company currently sells equipment for fixed WiMAX installations, and is planning to move into the mobility sector.

"It's one of the natural evolutions" of the business, Chang added.

The rollout of this technology would be quite similar to the way cellular service spread across the country. Similarly, Chang said businesses would likely be the first targets of any initial WiMAX offering, with services aimed at consumers appearing as cost drops and the nascent technology becomes more widespread.

Pricing would also likely start where 3G services are now -- around fifty or so dollars per month on top of a calling plan.

But just because the major operators are holding out for mobile WiMAX, it does not mean the death of fixed implementations of the technology within the United States. Chang said smaller operators have shown interest in the technology for use in areas underserved by current broadband technologies such as cable and DSL.

Depending on what band is used, one WiMAX tower can serve a radius of anywhere from five to 15 miles, he said. Plus, the cost-effectiveness of WiMAX may prove to be a better solution than large-scale Wi-Fi deployments in cities.

For example, "EarthLink could migrate to WiMAX in order to save money," Chang suggested, as the company would need less base stations.

"With Wi-Fi, you can't guarantee a set speed for your customers," he explained. "However, WiMAX by default supports traffic shaping," which means a provider could guarantee each user a set amount of bandwidth.

In any case, Chang says the technology looks to be lucrative for all involved. Equipment makers would likely make most of their money through the sales of devices needed to connect to these networks. Service providers, meanwhile, would probably end up making much of their revenues through business customers.

"There's room for everyone to make money," he said.