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

How WLAN Transforms Industrial Automation

The industrial sector is on the eve of a wireless transformation, driven by an urgent demand for greater network capacity, reliability, and deterministic performance. Historically, manufacturers and mission-critical operations have relied on wired networks — favoring their predictability — because spectrum congestion in legacy 2.4GHz and 5GHz bands limited confidence in wireless for operational technology (OT) environments. However, with the introduction and rapid adoption of the 6GHz spectrum, compounded by significant advances in Wi-Fi standards, industrial facilities are now poised to embrace wireless LANs as the backbone for automation and digital innovation. Industrial WLAN Market Development Recent research from ABI Research forecasts that over 70 percent of industrial-grade wireless LAN access points (WLAN APs) shipped in 2030 will support the 6GHz band. This is a leap from 2 percent in 2023, highlighting a rapid and profound technological shift. The market for ruggedized indust...