Detecon predicts WiMAX will enable a new breed of service providers to flourish

New Detecon white paper outlines key points on this emerging technology

SAN MATEO, CA – Detecon Inc. today released five key predictions on how WiMAX will affect the industry. Most importantly, WiMAX will enable service providers to offer a full bundle of voice, data and video services.

“The industry is approaching a turning point,” said Holger Spielberg, Vice President of Detecon, Inc. “WiMAX will allow new types of competitors to enter multiple market segments, going head to head with incumbents.”

Detecon’s predictions are outlined in its new white paper entitled “WiMAX Overview and Outlook for the USA” published this month. Detecon’s WiMAX predictions include:

• WiMAX deployment in heavily wired markets, such as Western Europe and North America, will be slower than in non-wired markets (such as China, India and the Caribbean) where the technology’s primary use will be for voice and data services.

• WiMAX will be of less interest to large wireline network operators who are not interested in providing bandwidth parity for those too far from the head-end or central office.

• US cellular operators will focus on mobility more than bandwidth and therefore will prefer 3GPPP technologies over WiMAX.

• WiMAX will allow a new breed of wireless internet service providers to flourish. Municipalities, power companies and also companies with many points of presence in key locations (such as Walmart, Fedex or the US Postal Service) could use WiMAX to enter the electronic data distribution market.

• WiMAX will also play a role in the convergence market where it could provide some element of a triple play bouquet. The most interesting examples are the Direct Broadcast Satellite (DBS) companies that could use WiMAX to complement their video offering with data and voice, making them more attractive against cable companies or Telcos.

The in-depth white paper also lists important factors that differentiate WiMAX from previous broadband wireless access technologies:

WiMAX is a standard.
Most carriers and network equipment manufacturers have embraced the standard, part of the highly popular 802 (Ethernet) standard family.

WiMAX does not require Line of Sight (LOS).
Most previous broadband wireless access solutions required LOS, making ubiquitous deployment a marketing hope, but an insurmountable technical challenge in cities where foliage and buildings obscure LOS.

WiMAX offers Quality of Service (QoS).
QoS allows for the deployment of voice, data and video applications. By increasing service diversity (e.g., triple or quadruple play), WiMAX allows for wider and richer deployments.

WiMAX has the best spectrum efficiency to date.
WiMAX has a theoretical spectrum efficiency of up to 7bit/Hz/Second -- by far, superior to most other wireless technologies. This efficiency allows providers more latitude in their business plans both to acquire (when necessary) spectrum and to manage their radio frequency (RF) network.

WiMAX is supported by industry leaders.
Before WiMAX, broadband wireless access was the dueling fields of small operators served by small equipment manufacturers. Unable to drive enough volumes, little venture capital was invested. On the other hand, industry leaders such as Intel are firmly behind WiMAX, seeing it as a follow-up for its hugely successful Centrino. The marketing might of Intel has created an industry-wide momentum for investment, as well as research and development activities.

“Detecon is in an excellent position to help both incumbents and new entrants identify the opportunities and risks associated with WiMAX,” said Dr. Patrick Pfeffer, Senior Consultant, Detecon, Inc. “This can help industry players significantly cut capital expense, while speeding time to market.”

An Executive Summary of this in-depth white paper is available at http://www.deteconamericas.com/wi_max.shtml.

About Detecon
With over 3,000 projects in 120 countries and more than 600 consultants on staff, Detecon is one of the world’s leading global consulting firms for the communications and information technology industry. Providing business insights and technology services that help clients succeed, Detecon serves enterprises, service providers and government entities in the Americas, Europe, Asia and Africa. Detecon, Inc. is headquartered in Reston, Virginia, with other U.S. offices in San Mateo, California and Miami, Florida. Other offices are located in key markets throughout the world. Detecon is a fully owned subsidiary of T-Systems International GmbH, a division of Deutsche Telekom. Please visit us at www.DeteconAmericas.com.

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