WiMAX

New report declares WiMAX a “niche technology” in emerging markets

A couple of years ago, WiMAX was going to be the winner in emerging wireless broadband markets…so said the pundits. Now a new Ovum research report is relegating WiMAX to “niche” technology status. Why niche? Ovum analyst Angel Dobardziev says it’s a combination of technology cost, coverage, vendor support and service provider choices.

The key stumbling block is the cost of customer equipment, which will limit WiMAX use outside business customers, he said.

“WiMAX will play a role, but it will be a far smaller one than many WiMAX players would accept today, WiMAX will fall short of the grand hope of being a mass market broadband technology in emerging markets,” Dobardziev said, estimating that WiMAX will account for less than 5% of the 1.5 billion fixed and mobile broadband access connections in the emerging markets in 2014.

The original hope was that in areas with little existing infrastructure, WiMAX would be the logical Greenfield choice for wireless broadband, but Ovum questions whether there is a really big market for WiMAX in emerging markets. A full two-thirds of the world’s WiMAX networks will be in emerging markets in Africa, Asia, Eastern Europe, the Middle East and Latin America, but they will have low uptake, Dobardziev said.

“On a non-subsidized basis, it is currently priced and positioned as a broadband option only for businesses or wealthy consumers,” he said. “The cost of customer equipment (CE) remains the key stumbling block for WiMAX operators, where both DSL and HSPA outperform WiMAX with significantly greater economies of scale.”

Clearwire legal action: Mo’ WiMax, Mo’ Problems?

Mo’ WiMax, Mo’ Problems. Maybe that should be Clearwire’s unofficial motto.

Even as the company’s mobile WiMax solution slowly starts to take off, the company’s fixed WiMax solution is the target of a proposed class-action suit, alleging that, according to law firm Tycko & Zavareei LLP’s press release (PDF here):

… Clearwire engages in false advertising of its internet and telephone services. Although Clearwire advertises its internet service offering as a reliable, comparable, and “always-on” alternative to cable Internet or DSL, the complaint alleges that Clearwire’s Internet service is actually far inferior to cable Internet and DSL, as consumers frequently experienced service disruptions, including dial-up speeds and lack of service entirely.

With respect to Clearwire’s telephone service, although Clearwire advertises its telephone service as a superior alternative to traditional land-line telephone service, the complaint alleges that Clearwire’s telephone service is far inferior to traditional land-line service, as subscribers experience frequent service disruptions.

The complaint also takes aim at the company’s early-termination fee, charging that Continued »

Telecom Timeout: Recession reactions

This week’s Telecom Timeout features Q4 results from Global Crossing, Comcast, Sprint Nextel and Rogers Communications, as well as a Carrier Ethernet progress report from the Juniper Networks and Nokia Siemens partnership, the results of the U.S. broadband stimulus package, and a 4G update on WiMAX and LTE from Verizon Wireless, Comcast, Clearwire, Qualcomm and CenturyTel. HP announces the new formation of its own telecom group, Nortel finds at least one buyer for some of its assets and YouTube is experimenting with downloadable content for a fee.

Keeping you up-to-date on the latest in telecommunications industry news, views and strategy, Telecom Timeout and its weekly video blog track the highs and lows of the industry. Join us daily on Telecom Timeout for conversations on developing telecom trends and in-depth analysis of service providers, VoIP, wireless, IPTV, telecom regulation, and more.