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Australian WiMax Pioneer Calls It a Disaster
Anonymous Coward writes "Garth Freeman, CEO of Australia's first WiMax operator, sat down at the recent International WiMax Conference in Bangkok and unleashed a tirade about the failings of the technology, leaving an otherwise pro-WiMax audience stunned. His company, Buzz Broadband, had deployed a WiMax network over a year ago, and Freeman left no doubt about what conclusions he had drawn. He claimed that 'its non-line of sight performance was "non-existent" beyond just 2 kilometres from the base station, indoor performance decayed at just 400m and that latency rates reached as high as 1000 milliseconds. Poor latency and jitter made it unacceptable for many Internet applications and specifically VoIP, which Buzz has employed as the main selling point to induce people to shed their use of incumbent services.' We've previously discussed the beginnings of WiMax as well as recent plans for a massive network in India.
There's nothing magical about WiMax. Other frequency ranges, other protocols, that's about it.
The only interesting thing about it is that it's not operated by traditional telcos.
But remember, what traditional telcos sell is not telecom, they're SELLING UBIQUITOUS telecom.
An untraditional telco would have to sell at a nonzero price ubiquitous. If they sell at zero price (or truly flat rate), a smartass will monopolize all access and resell it at real market price (what people are truly willing to pay). If the service is only sporadically available, no one will want to pay for it, or they would be better off setting up a fix line connection at the only place it works. If they comply to the two conditions, they are definitely traditional telcos.
In the long run, WiMax is bad for the consumer. As I explained above, the business model behind WiMax can only be the "traditional telco model". But now we have two technologies with incompatible end user hardware, incompatible operator hardware. Nokia and Alcatel Lucent will sell less copies of their products to operators, thus the price will rise. Nokia and Alcatel Lucent will ask for higher fees from the opco, guess who will pay the bill. Nokia and Motorola will sell less copies of their products to end users, guess who will pay for the relatively higher cost.
Furthermore, with WiMax vs 3G, there are now not one, but two markets for mobile data and voice. Barrier to jump from one to the other market is nonzero for the consumers. Each of the individual markets is also smaller, hence less competitive.
Fuck WiMax