[IP] WiMAX Not Cheap Or Easy, Carriers Say
Begin forwarded message:
From: Dewayne Hendricks <dewayne@xxxxxxxxxxxxx>
Date: October 27, 2005 2:12:03 AM EDT
To: Dewayne-Net Technology List <dewayne-net@xxxxxxxxxxxxx>
Subject: [Dewayne-Net] WiMAX Not Cheap Or Easy, Carriers Say
Reply-To: dewayne@xxxxxxxxxxxxx
October 26, 2005
WiMAX Not Cheap Or Easy, Carriers Say
<http://www.internetweek.com/showArticle.jhtml?articleId=172900702>
Costs of implementing new wireless technology still too steep for
widespread deployment, say carriers who have WiMAX trials underway.
By Paul Kapustka Courtesy of Networking Pipeline
LAS VEGAS, Nev. -- Sometimes hailed as telecom's next conquering
hero, the technology known as WiMAX was deemed too expensive and too
complex for immediate widespread deployment, according to carriers
who have WiMAX trials underway.
At a panel discussion Tuesday at the USTA Telecom '05 show here, a
panel of WiMAX equipment suppliers and telephone service providers
debated whether or not carriers would "take the leap" and implement
WiMAX, a broadband wireless technology that offers the promise of
being a "third pipe" to compete with cable modems and DSL.
Their verdict? Someday, maybe, but not right now, since equipment
costs, spectrum issues and implementation procedures make it tough to
offer WiMAX services at a competitive price point. "It's going to
take some time before WiMAX is a real competitor," said Aamir
Hussain, director of engineering at Qwest, which has extensive WiMAX
trials underway.
To really become attractive to carriers, WiMAX needs to have customer-
premise equipment in the sub-$100 range, Hussain said. While such
equipment is currently priced in the $500-600 range, Hussain said
emerging standards and economies of scale should push the prices down
rapidly, reaching the below-$100 mark by the end of 2007. Equipment
for carriers is equally costly, in the $2,500-$5,000 range per
terminal, Hussain said. But those prices should to drop below $1,000
per terminal in a few years, he predicted.
Almost all the panelists agreed that WiMAX would survive as part of a
mix of access technologies. Mick Reeve, group technology officer for
British Telecom, claimed that CTOs of most major carriers already
have WiMAX trials underway, and that the first iterations of WiMAX --
which only support "fixed" or stationary end-user points -- will
likely be marketed as DSL replacement services, offering "realistic"
service of between 1 Mbps and 2 Mbps of bandwidth.
"The real question is whether or not carriers will take the leap to
mobile WiMAX," Reeve said, speaking of a future version that will
support mobile users, much as Wi-Fi hotspots support wireless laptop
use. Right now, "the business case for mobile WiMAX is tough," Reeve
said.
[snip]
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