WiMax holds promise to help narrow digital divide

February 24, 2006

Wimax has plenty of potential in rural areas, as described in this interesting analysis and report on the impact of this imperfect technology.

WiMAX is touted as the tool that will bridge the "digital divide", providing areas that lack affordable telecommunication infrastructure with a critical tool for the future economic and social development of a community, region or nation. The United Nations is pushing for access to broadband across borders. Its challenge, "Information Society for All," resulted from the World Summit on the Information Society in 2003.

A driving reason for the development of WiMAX is its potential to reduce the cost and time to deploy and sustain high bandwidth access to phone, video and data networks to areas too remote for traditional wired telecommunication. This is not just a third world issue; we have communities in our own region that are grossly under served. We may have dial-up access or even a form of DSL or cable. But without the ability to achieve speeds higher than 2Mb/s download and 256kb/s upload, we will never be able to use new tools available.

The advantages of WiMAX are widely noted:

- A single station can serve hundreds of users.
- Endpoints can be installed far faster than wired connections.
- Data rates as high as 280Mb/s and distances up to 30 miles are possible.
- Users can operate mobile within three to five miles of a base station at up to 75Mb/s.
- No Federal Communications Commission (FCC) licensing is required for its use.
- It is a Worldwide standard and same frequency equipment should work together.

But where there are PROs, there are also CONs, and certain disadvantages to WiMax:

- Line of site is required for connections five miles or further.
- Rain and weather can disrupt the service.
- Other wireless equipment in the vicinity can interfere with WiMAX.
- Multiple frequencies will be used to deploy WiMAX.
- WiMAX is a power intensive technology and requires strong electrical support.
- Realities of WiMAX data rates are more like 72Mb/s, less as you add distance.

The applications of WiMAX will be different for every provider and user of the technology. Some will use it as a replacement of copper lines; some for backhaul to a central point; others will simply use the longer distance instead of Wi-Fi. Its deployment should prompt competition and competitive rates among the Incumbent (ILEC) and competitive local exchange carriers (CLEC).

Patrick Malley, general manager at Superior Broadband in Duluth, said 150 markets are being tested worldwide with the pre-certified WiMAX equipment, but his company will wait to evaluate the benefits until certified equipment is available from manufacturers. “WiMAX will benefit both the providers and end users when it comes available, and the customer equipment costs are below $250,” he said.

Meanwhile, a recent report by European communications consultant IDATE titled, “WiMAX: Ready for Deployment?” forecasts the worldwide WiMAX market will hit $3.5 billion by 2010. That's a 4 percent share of all broadband use. This growth will be driven by new equipment from an expanding list of hardware suppliers and an increasing number of WiMAX trials and deployments.

Will WiMAX change the world? Its proponents certainly believe it will. Can we use it in our U.S. regions right now, even as we contemplate fiber optic networks in some communities? Absolutely!

A Special Focus by Brian Fitzgerald
For Business North

See the entire article.