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Mobile WiMAX to Encounter Significant Hurdles on its way to Mediocrity

Although proponents of mobile WiMAX are positioning it as the best choice for a next generation network technology, IMS Research believes that it will struggle to gain traction with operators, and will ultimately remain a niche mobile technology.  

Many in the WiMAX community however are quick to emphasize the time-to-market advantage that 802.16e has over LTE.  While it is true that mobile WiMAX networks already have subscribers logging on to 802.16e networks around the world, and LTE networks are still at least three years away from commercial deployment, this time-to-market advantage will not tip the scales in favour of mobile WiMAX.  Network operators are just now beginning to see a return on their 3G investments as increasing numbers of consumers take advantage of mobile data plans. 

The fact that LTE won't be ready for another two to three years may actually turn out to be an advantage for LTE as the timeframe will allow mobile operators to get as much life as possible out of their existing 3G networks. Incremental upgrades to enhanced 3G technologies such as HSPA+ and EV-DO Rev B will allow for almost the same data rates as the initial LTE deployments. This will effectively set the stage for large scale LTE commercial rollouts in 3-4 years. 

While it is certain that both standards will achieve some level of success, the road to mass adoption for mobile WiMAX will certainly be more challenging than that of LTE. This is further evidenced by the fact that the 3GPP has already tabbed LTE as the 4G standard for the GSM evolution path and the fact that the majority of cellular networks around the world are GSM does not bode well for mobile WiMAX supporters. This lack of wide-spread adoption will leave little incentive for mobile device manufacturers to develop products that support mobile WiMAX applications. 

According to IMS Research Analyst Bob Perez, "The truth is that WiMAX is a very robust technology that has been quite successful in many parts of the world as a fixed broadband solution and will continue to do so, especially in underserved markets."  He continued by saying that, "although mobile WiMAX networks are already going live thanks to Sprint/Clearwire and Korea Telecom the prospect of additional mobile WiMAX networks from Tier 1 operators are looking pretty grim." 

The market for both fixed and mobile WiMAX is examined in detail in the new IMS Research report, "The Worldwide Market for WiMAX & Competing Products - 2008 Edition".   In addition, the upcoming report from IMS Research, "Mobile Broadband: 4G Network Evolution" will contain a comprehensive analysis of both the mobile WiMAX and LTE markets.

Released by IMS Research

With UMB Left Behind, 3G LTE and WiMAX Battle for 4G Supremacy

In 2008, the road to wireless 4G cleared a bit, with ultra-mobile broadband (UMB) left publicly by the roadside, narrowing the path to two technologies: LTE and WiMAX, reports In-Stat.

Both 4G technologies, meaning those technologies that are expected to meet the requirements of IMT-Advanced, are far from being commercially deployed, the high-tech market research firm says. Both LTE Advanced and 802.16m WiMAX are being specially crafted to offer 100Mbps mobile throughput and 1Gbps stationary throughput; these extremely high throughput capabilities are expected to be a critical part of the ITU’s IMT-Advanced requirements.

“Mobile WiMAX effectively came on the scene in 2006 with South Korea’s WiBro; the earliest commercial LTE deployment will be in 2009,” says Gemma Tedesco, In-Stat analyst. “Overall, In-Stat expects that mobile WiMAX will ultimately outpace LTE over the next few years due to timing of network roll-outs.”

- The success of the Sprint/Clearwire mobile WiMAX roll-out is expected to have a huge effect on whether or not large worldwide operators will roll out mobile WiMAX.

- Mobile WiMAX and LTE will represent only a miniscule portion of total 2G/3G/4G cellular subscriptions in 2013, with GSM/EDGE/GPRS expected to account for more than 55 percent of the total 4.8 billion subscriptions.

- HSPA may turn into 802.16e WiMAX’s true competitor, and also may delay LTE roll-outs.

Released by In-Stat

KT Provides Open Media Service for WiBro Users

KT concluded an agreement with a local media service consortium of Freechal, Oricon CNS, Soribada and Iconon to provide movie, game and other open media services on WiBro network. 
 
KT already launched full browsing service for mobile devices, and plans to the media service to five types of mobile digital devices including PMP, navigation system and e-dictionary.
 
The media service includes Freechal's UCC and P2P service, Oricon CNS's VOD streaming of the latest movies, Soribada's MP3 file sharing, and Iconon's online games, said KT.
 
The services are the first ever open platform based media service on WiBro network, which is originated from mobile 2.0 built on the values of participation, sharing and opening. More content providers will be able to develop services using open network and O/S and provide them on WiBro network, said KT.
 
The collaboration will bring a variety of media service to the touch screens of devices for WiBro network that offers fast download speed at affordable rates, said KT.
 
Soribada, an online music service provider and member of the consortium, said, "If WiBro service is promoted, demand for music download on wireless platform would also rise."

SK Telecom Develops Mobile WiMax Femtocell

SK Telecom, the largest mobile operator in Korea, said that it developed 'Mobile WiMax Business Femtocell' and will launch the service at the end of the year. 
 
Mobile WiMax Business Femtocell is a super-tiny base station that offers wireless high speed Internet by accessing to core network through SK Telecom exclusive network.
 
The femtocell, nicknamed as IB Cell, combined Wave 2 MIMO standard and SK Telecom’s core access technologies to ensure easy installation and use. It improves the clarity of in-building calls significantly thus ensuring high quality WiBro service, said SK Telecom.
 
SK Telecom said that IB Cell can save investment cost for it is super small and super cheap, but shows as good performance as macro base stations. It will be a best-fit in-building solution for next generation networks, said SK Telecom.

KT to Seed WiBro in Uzbekistan

KT enters mobile broadband industry in central Asia with WiBro, a Korean version of mobile WiMax.
 
The first step was taken towards Uzbekistan. KT’s local subsidiary SUPER iMAX launched EVO WiBro service in September. EVO offers WiBro Wave 2. The service is provided in association with Korean application and solutions providers, Posdata and Infomark.

EVO is now provided in Tashkent, Samarkand, Andizhan and Fergana. The number of enterprise clients are 420, which is higher than expected, said KT. The company set a goal to increase the number to 2,400 by the yearend.
 
KT believes that WiBro is highly likely to be successful in Uzbekistan for the country achieved economic growth of 9.5 percent in 2007 and there are high demands for broadband Internet, but the land is too big to wire the whole country with fixed line Internet.
 
In 2007, Internet penetration in the country was 8 percent and ADSL subscribers numbered 30,000. KT expects to strengthen its position in the market by providing faster and better services.
 
KT said that the service will be expanded gradually to major cities of the country including Navoi in next year. In addition, it will target individual customers by providing diverse content such as music, game, and personal webpage.

Pohang WiBro Town Celebrates the Grand Opening

Pohang WiBro Town ushers in a new era of mobile communications.

KT announced the grand opening of Pohang WiBro Town taking advantage of system equipment such as the base-station developed by Posdata and the planned launch of full-fledged WiBro service. Accordingly, citizens of Pohang including students and research workers will be able to enjoy seamless WiBro service even on a moving vehicle.

Posdata and KT signed an agreement for the establishment of WiBro Town at the end of last year and embarked on network construction in last August. By bringing in Posdata's equipment, KT plans to encourage cooperation for WiBro service and create a multi-vendor system for a brisker service. 

Posdata says, "Pohang WiBro Town has Postech, R&D- and residential-complexes generating plenty of demands for WiBro. With the opening of WiBro Town, we will cooperate with KT and develop various service models for specialized purposes."

To promote WiBro service in an early stage, Posdata and KT will select a group of 500 people and give them an opportunity to try out WiBro service. 

LG "Not Interested In WiBro"

While Samsung Electronics actively works for WiBro service, its rivals at LG Group-LG Electronics, LG Dacom, and LG Powercomm- made it clear that they are not interested in the business.

Mr. Park Jong-eung, the president of LG Dacom said, “We used to increase capital for new businesses. But, no more of that for a new service like WiBro.”
 
He said, “When we applied for the WiBro business license in 2005, we estimated that the business will cost about 1.4 trillion won. For us, it’s not worth the money because the service is advantageous to those having more broadband Internet subscribers.”
 
Though LG Powercomm claims more than two million broadband subscribers, KT, which has the most wireless Internet zones and broadband subscribers, still got the upper hand, said the company.
 
Instead, LG Electronics focuses on LTE, one of the most promising 4G technologies.
 
Korea Communications Commission planned to add a new player in WiBro industry by allowing voice service of WiBro providers in the end of this year. In 2005, Hanaro Telecom (now SK Broadband) gave up on the WiBro business license. As LG denied its intention to get the business license, Samsung or cable TV service providers are likely to get it.
 
However, as it is not sure whether cable TV providers can afford trillions won of investment needed to launch the voice service, the government’s plan to add a new WiBro service provider seems to face an uphill battle.