Doubts Over Intel's WiMAX Service Pricing Claim
Ian Lamont writes "An Intel executive has suggested in a blog post that WiMAX could lead to massive savings on broadband Internet, mobile voice, and mobile data service prices. His post lists a WiMAX-based package of services including home broadband, mobile voice and broadband, home phone service (including international) and even video phone service for $50 to $100 total. It sounds great, but unfortunately for Intel and consumers, it's unlikely to happen any time soon, thanks to factors ranging from costly WiMAX buildouts to the telcos' lucrative business models based on existing wired and 2.5G/3G infrastructures. There are also questions about WiMAX's actual range following a messy Australian rollout, although the vendor there claims the Australian service provider under-provisioned the network."
.. lucrative business models based on existing wired and 2.5G/3G infrastructuresNow there's an understatement. I would call the business model 'ludicrous' rather than lucrative. 3G is priced way out of reasonable range for any serious use.
Nobody pretends that wireless broadband will be available in mountain crevices, but 3G has been quite disappointing IMO.
As for $50/$100 plans, that will depend on competition, which in Australia, at least, is totally lacking.
Do it yourself, because no one else will do it yourself. [beta blockade 10-17 Feb]
To provide some context here -- since they used Airspan's equipment, the Australian operator probably deployed the older variant of WiMAX, based on the IEEE 802.16-2004 standard (called 16d or Fixed WiMAX). The majority of the industry on the other hand has shifted to the newer 802.16e-2005 standard (mobile WiMAX). Fixed WiMAX is essentially a near line of sight technology, not intended for non line of sight or mobile applications.
Mobile WiMAX uses a different physical layer than 16d, and it supports radio features to improve link robustness (such as convolutional turbo coding) and smart antenna technologies (2x2 MIMO to increase capacity and beam forming to increase cell range). In short, you can't gauge the performance of a mobile WiMAX network based on the results from a 16d network. The results I've seen in trials have matched radio propagation estimates fairly well, with the range being roughly what you see you traditional 2G/3G cellular -- 0.5 to 2 miles for non line of sight conditions. I've heard anecdotally of longer ranges of up to 30 miles for line of sight.
The rest of the industry has been fairly pleased with the performance of WiMAX during trials and early market deployments. Consider the number of service providers spending capital dollars to deploy. The WiMAX Forum recently announced there are more than 300 service providers deploying WiMAX in 118 countries worldwide. With Sprint's XOHM network going commercial later this year, we should have a better understanding of the benefits of WiMAX in a few months. The biggest concern I've heard of is the lack of devices today, but hopefully that will be alleviated late this year or early 2009.
Insert simplistic political, ideological, or personal proselytization here.
Due to massive hype -- much of which is false -- by the WiMAX Consortium, much of the public doesn't understand one simple thing: WiMAX is just another kinda radio. One that's only slightly better than some of the other kinds. There's nothing particularly wonderful about it. But it does have one real drawback that doesn't really have to do with the nature of the standard itself. That is that it's intended and manufactured for use on licensed spectrum, which -- due to poor spectrum management policy -- is expensive and scarce. So scarce that even many of the big telecommunications providers failed to win it in recent auctions. And so expensive, due to speculation and pre-emptive bidding, that once you've bought the spectrum you're unlikely ever to break even on that investment no matter what kind of radio you use. So, WiMAX is at best slightly better than other kinds of radios and is tied to an impossible business model. WISPs that ignore WiMAX and use other technologies will do better.
So, I suppose the question of the day is- do you happen to know of a technology that operates in unlicensed spectra that provides nearly the same range, throughput, or scalability that WiMAX does?
Why not open an unlicensed WiMax spectrum?
Do what we did with WiFi and let the people operate the hotspots
An SQL query goes to a bar, walks up to a table and asks, "Mind if I join you?"
I am typing this through a WiMAX connection in Greece, so let me clarify a couple of things...
The technology itself is proven and works, both for data and VoIP. You do need to have a proper backbone though; it just doesn't scale to use WiMAX everywhere. A better idea is to use Ethernet microwave links for the backbone and WiMAX stations locally. If you couple this with a multiservice access node (MSAN) you can service remote areas that have local copper lines installed, but lack a proper backbone (eg fiber is too expensive to install and maintain in a mountain side). Right now, this is the killer application for this technology, as this is how it sells itself with most countrys' incumbent telecommunications providers.
The range is just fine, we have tested successfully with distances up to 30Km. Mind you, this is line of sight, the first generation (called fixed WiMAX) is not very good in urban conditions, but for semi-urban and rural areas it performs as advertised. The second generation (called mobile WiMAX) is supposed to give as 2G penetration and coverage, but I have not played around with it yet. This is also supposed to be the killer application for the second generation; broadband everywhere, even on the go.
The available spectrum is limited, but proper planning goes a long way. I can't get too specific, but in our trials we have been quite limited with spectrum with no real problems.
I don't see prices to be dirt cheap though; licensed spectrum costs money. On the other hand, stations and terminals are getting cheaper all the time. I think that WiMAX services' cost will follow the same general trend; slightly more expensive that the equivalent fixed line broadband at first, getting cheaper as it catches on.
Let's be realistic. Cheaper technology won't mean lower costs to the consumer. It'll mean more profits for the guys who roll it out.
Shhhh... WiMAX can operate in the unlicensed 5.8 Ghz band.
Oh yay another pointless HypeMAX thread where nerds get so excited over the idea of checking email from the PortaJohn at the park, they just can't contain themselves.
Face it, it's a shared medium with half-duplex radios. If it ever becomes slightly popular, it will suck FAR MORE than cable-modems do now.
Believe it or not, properly engineered 802.11a has the same or better range, throughput, and scalability.
Dude, I don't know whether your being funny or ironic or anything - just stop.
What's the value of information that you don't know?
I work for a wireless company, developing WiMax and WiFi. It's pretty hard to beat the raw speed we can get out of 802.11 (WiFi), and we can stretch WiFi to fairly long distances as we can with WiMax.
However, WiMax has one huge advantage for system design - because transfers are a mix of scheduled and free-for-all instead of only free-for-all like WiFi, you can actually guarantee service. You can lock clients down to a fixed bandwidth _without_ letting them flood the channel, or you can guarantee minimum throughput, and you can classify packets into multiple service flows at the protocol level (prioritizing ACKs as an example). WiFi has 4 levels of service with WME, but the client gets to decide and can lie for advantage.
With WiFi you can throttle flows at the gateway, but you can't stop some greedy dick from completely swamping the channel. With WiMax you can throttle at the client. Some of you are obviously going to think that's a bad thing, but if we want to set up a public deployment we really need to be able to make sure that someone torrenting with 512 connections open isn't going to knock everyone else off the air and make it unusable for everyone. WiMax does a far superior job to WiFi of sharing the bandwidth so more total clients get at least a reasonable amount of throughput even if one greedy S.O.B. _really_ wants to eat up the entire channel and then more. And this is the assurance provisioners need when deciding they're going to offer the service.
I don't know about Intel's claims, but you are certainly able to guarantee a better experience with WiMax than you are with WiFi as long as your product doesn't suck.
To be fair, a major WiMax disadvantage is that there's really no equivalent of mesh networks. It's all server/client, no useful ad-hoc like WiFi has. You can simulate it with each node having a server and a client, but they're very asymmetrical, so it's currently pretty wasteful to do so.
I suppose I'd need to see that to believe it. WiMAX hits 4-5 miles with obstructions and 10 in a NLOS configuration. I've yet to see 802.11A hit 1000 yards. Do you have anything indicating the means by which that might be accomplished?
Heh, dont like free speech now? Dont give him more attention than he already have and let him speek freely, if there is no truth to his allegations then no one has anything to fear.
Huge problem here - total troll.
You need to look at ping paths - this is actually furious to me. It is actually in an option here. You can custom firm a Linux phone with this intent, and you can custom throttle the whole system - all in one phone.
Troll
- The Demetrius -
>Home Broadband (WiMAX)â¦â¦â¦â¦â¦â¦â¦â¦.Included >Cell Phone Service (WiMAX Mobile VoIP) â¦â¦Included >Home phone service (WiMAX VoIP) â¦â¦â¦â¦..Included >Mobile Broadband (Mobile WiMAX)â¦â¦â¦â¦â¦Included This might work for singles but for people with families or just girlfriends all that cant be in one device (subscription). What happens when you want to use mobilebroadband or cellphone service, then there arn't a device back home so how is the rest of the family supposed to get online? If you split the connection up on several devices there arn't any differences to current tripleplay solution. There are no way wimax is going to be magically cheaper than the other connection types.
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What are you on about? LTE outperforms Wimax and is just as "ready" as it is - and in the meantime HSPA is doing results Wimax hasn't been able to replicate in real life scenarious yet.
No one needs Wimax - except for companies that haven't been doing telecom for many years already.
Im guessing you are a nazi/zionist-jew?
We already use WiMAX at work (and have been for over a year). WiMAX is only available here because the monopoly telco charges so much for leased lines (five times the going rate elsewhere. Yes, five times) that it was economical for a firm to start up and offer WiMAX business class internet service.
It's been every bit as reliable as the equivalent wired service. However, we aren't using cheap 'consumer grade' kit to connect, we have a fairly expensive and solid transceiver mounted very solidly to the wall of the building.
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I have to think that Big Telco is going to charge a premium rather then discount you. Don't even think for a second the FCC is going to let small telco pop towers down. Unless then have 10 billion to whip out their wallets. This means you still have to rely on the old providers like Sprint with their WiMax project to get the data to you. If you think they are going to price this service CHEAPER then their line service, you may want to think about quitting the pipe.
I see base WiMax starting at 69.99 (for like 3/768 unlimited data). Then again this is all just complete guess work until someone rolls it out and say this will cost $xx.x
Hey, I said 'please'. I was just excercising my own free speech rights ;)
The Australian ISP that was whining about their deployment said they were expecting to get full strength at two kilometers and that's not even part of the spec for current generation customer premise equipment. Moreover, their VoIP problems were apparently aggravated by a shaky upstream connect at the ISP.
WiMax is not really a homogenous entity, it's more like a collection of protocols that work at different service levels according to power requirements and distance and are totally different for the sending radios and the base stations. Overall it's a system that works out to seem like a homgenous entity but that's sort of an illusion because the gory details are reserved for the ISPs. But with the power levels that are going into current customer premise equipment there are technical reasons related to amplifier performance that limit the sending power of the field radios to about a kilometer for a full strength signal and the drop-off comes pretty fast as you go beyond that.
Having said that, it's still completely true that this is no doubt much cheaper than any kind of wired infrastructure. Even if you had to put in a base station for a single user --which actually would not make sense-- you've got to compare that to the cost of a kilometer of wire and the cost of installing that wire.
But, again, it wouldn't make sense to install WiMax for a single user because the base stations have a sort of minimum density of downstream clients to make them cost effective. You basically will only see WiMax in areas where there are at least fifty users in a kilometer sized circle. That will change when the amplifiers in the base stations can be increased in power but that will not happen for several years if it does happen at all.
Still, the costs are minimal for an ISP and it does enable a new generation of small ISPs focused on remote local communities. It may not be a perfect solution for the remotest locations, but consider that you can use directional WiFi line-of-site for literally hundreds of miles as a feed into a small town and then cover the entire town with one or two WiMax base stations. If you allow users to set up their own directional WiFi with line-of-site to more remote locations you can extend that network at better than DSL upstream rates far into remote areas surrounding small towns at very low costs.
Within cities, there's no reason WiMax shouldn't cost far less than DSL or cable. Wholesale bandwidth costs are like nothing compared to what ISPs are charging in the States.
but here's the kicker. . . using nothing but an 18" satellite TV dish from a thrift store for six bucks and a Linksys router with an external antennae taped onto the feedhorn.
Works just fine and I have hit base stations thirty miles away with full strength signals while I was getting it set up.
So, you're misinformed about 802.11a. It's a microwave signal and it's as good as the gain of your antennae in line-of-site configuration.
Signal/noise ratio is mainly determined by things like the type and number of antennas and how you use them (to do beamforming, etc).
Bandwidth is a fixed quantity, you can only get so much from the government.
So given that with modern 3G protocols, we get pretty close to the Shannon limit for a given antenna technology, how are huge gains available by switching to WiMAX? They can get big bandwidths for a single user by eating up lots of spectrum (and they do, like 20Mhz at a time), but overall throughput for all users... is it really better than provisioning that 20Mhz into several HSUPA+ channels?
-- Erich
Slashdot reader since 1997
You can guess all you like, but there is plenty of information out there that you can also use to inform yourself. Your guess misses the point that WiMax is inherently symmetrical service. The reason for this is that the limit on the service is not in the ISPs sending radio but in the customer premise equipment (CPE) and the amplifiers in these little customer owned boxes are the limiting factor. However, within a kilometer they're rated at least 10mpbs upstream. That's a completely different game than DSL or cable. So, your guess is wrong.
Yes, WiMAX can operate in the 5.8 GHz band. But there's no point, because it's never going to be less expensive than existing 802.11a equipment for that band.
There are dozens of commercial, FCC approved (not homebrew) 802.11a-based radios which work well at distances up to 40 miles.
WiMAX can operate at several miles in point to multipoint configuration, rather than just point to point. It also has better mechanisms for handling the scalability issues associated with using it as a last-mile technology in conjunction with a WLAN technology. That's the point- it is designed for WISP rollout, not consumer deployment.
The problem with WiMAX IMO is nothing really to do with the technology on a technical level, as it actually uses the same modulation scheme as LTE, but rather with the WiMAX Consortium. The WiMAX Consortium has set things up so that only a couple large companies make the money. This goes all the way down to the device testing side. Here, you have AT4 wireless in Spain whom the manufactures like R&S must GIVE equipment to "validate". We are talking more than 1 million for a WiMAX RF test system. Lots of cash. Then you have WiMAX Consortium price fixing on how much a test house can charge for something, as well as the equipment costs. Also, if you want to get into that business you need to pay the WiMAX Consortium 1 million buck....you heard me right...1 million buck for the rights to do it. Then the test spec it self. They cant figure it out. They decided that the GSM guys where just too stupid and WiMAX better start from nothing...that's not working out too well for them. So, to make a long post longer..WiMAX will fail, but it wont be the fault of the tech, which is actually really good, it will be the fault of the money machine WiMAX Consortium whom is interested in a money and power grab, rather the open membership.
Just because it's symmetrical doesn't mean you will get 1:1 Bandwidth. If a Pipe can handle lets say 10 mbit. It can be divided up 5/5 or 9/1. Now if I am ISP that means I can have 5 1/1customers or 9 1/128 kbit customers. Which do you think will make me as an ISP more money?
WiMax will be a success even if it never gets widely deployed or meets the price points in the article. it is forcing the other carriers to open their service to "any device, any protocol" ... i.e. just being a provider of network bandwidth to be used for any purpose the customer wants.
Actually, WiMax is intended for one kilometer
1 kilometer = 0.62 miles
That's a pretty big half mile.
paintball
What these two graphics show is first
http://i.cmpnet.com/wirelessnetdesignline/2008/06/sige-fig1.jpg
the range you would expect with currently shipping customer premise equipment
versus a second graphic
http://i.cmpnet.com/wirelessnetdesignline/2008/06/sige-fig3.jpg
showing how the range may be extended to nearly a kilometer and a half with improved amplifiers in the customer radios.
So, with these graphics, it clarifies how there could be some miscommunication about the coverage. You could both say that the furthest user from the base station is at a maximum of one kilometer and at the same time argue that a single base station could serve two customers two kilometers apart. Both of those are true and yet they mean imply slightly different things about the nature of the coverage.
AFAIK, Sprint and Clearwire and other WiMax wannabees are providing an alternative to cable and DSL and also cellphones. Sprint doesn't care about undercutting DSL prices, because they don't really do that anyway, (at least in most markets)?
LTE is UMTS.
No, LTE is not UMTS. LTE required entirely new hardware at both the cell and within the phone, and a new backend, compared to UMTS.
That doesn't make it not UMTS. Gigabit Ethernet requires new hardware at both ends over 10BaseT. It's still Ethernet.
LTE is not itself a standard. It is a series of improvements on UMTS. Just like EDGE is still just GPRS, LTE is just UMTS with some upgrades. In any case, it has no impact on the current discussion, because just like WiMAX, it's a radio-based, licensed-spectrum, long-range broadband application. You might prefer the 3GPP work in progress to WiMAX, but they're essentially two parallel paths with respect to OP's post.