Skip to main content

Competition for Broadband Wireless Services

After several years of false starts, wireless network operators around the world are beginning to succeed in their efforts to attract customers to broadband wireless services, and anticipated improvements in data throughput will accelerate mass-market uptake of mobile broadband, according to a new report from Heavy Reading.

Key findings of the report include the following:

3G-based W-CDMA and CDMA 1X EV-DO technology have a strong grip on the broadband wireless market and will continue to dominate it in terms of subscriber growth for at least the next three years. Compared with the challenge being mounted by Mobile WiMax, incumbent cellular standards have a huge advantage measured in terms of a more highly developed ecosystem, greater volumes in terminals and infrastructure, and the incumbent's right of access to premium broadband mobile spectrum in and around the 2GHz band.

Both W-CDMA and Mobile WiMax are gaining market momentum in terms of new operator recognition and contract awards. CDMA 2000, however, is showing signs of faltering. Telstra (Australia) is deploying W-CDMA, KDDI (Japan) is preparing to deploy WiMax, while SKT (Korea) is deploying both W-CDMA and WiMax. Some North American CDMA vendors report concern on the part of customers about the long-term growth prospects for CDMA, and there is a risk of some of these infrastructure vendors aggressively diverting R&D dollars into Mobile WiMax.

The amount of commonality between the competing broadband wireless standards is such that they are likely to converge and merge from four to two within the next two years. WiMax is the first of the broadband mobile standards to adopt a lower-cost, flat IP architecture with a more efficient air interface based on OFDMA.

In future releases, however, W-CDMA, CDMA 2000, and 802.20 will all evolve to comparable architectures, as well as variants of the same OFDMA-based air interface. Most vendors will admit some differences privately, but many say publicly that the performance characteristics of WiMax and UTRAN LTE (the W-CDMA OFDMA Variant) appear to be pretty much the same.

IMHO, the missing ingredient from most market research on this topic is a meaningful assessment of the best marketing strategies that service providers have applied to engage consumers and develop their markets for value-added services. My point: merely choosing the best wireless technology, and then making an associated infrastructure investment, clearly isn't a proven strategy to ensure success in the marketplace.

Popular posts from this blog

Bold Broadband Policy: Yes We Can, America

Try to imagine this scenario, that General Motors and Ford were given exclusive franchises to build America's interstate highway system, and also all the highways that connect local communities. Now imagine that, based upon a financial crisis, these troubled companies decided to convert all "their" local arteries into toll-roads -- they then use incremental toll fees to severely limit all travel to and from small businesses. Why? This handicapping process reduced the need to invest in building better new roads, or repairing the dilapidated ones. But, wouldn't that short-sighted decision have a detrimental impact on the overall national economy? It's a moot point -- pure fantasy -- you say. The U.S. political leadership would never knowingly risk the nation's social and economic future on the financial viability of a restrictive duopoly. Or, would they? The 21st century Global Networked Economy travels across essential broadband infrastructure. The forced intro...