Wimax: Opportunities and Challenges in the Wireless World - Case Study Example

Name: Professor: Institution: Course: Date: Table of content 1.0 Introduction……………………………………………………………………………………3 2.0 Body…………………………………………………………………………………………...3 21 Opportunities …………………………………………………………………………..3 2.2 Challenges …………………………………………………………………………….6 3.0 Conclusion ……………………………………………………………………………………7 4.0 References …………………………………………………………………………………….8 1.0 Introduction Worldwide Interoperability for Microwave Access (WiMAX) is a broadband wireless network based on the IEEE 802 standards that ensure interoperability and compatibility between the broadband wireless access equipment. WiMAX system comprises of a WiMAX tower and WiMAX receiver The WiMAX network has a similar approach as that of a cell phone. Using a subscriber device, the user sends data to a base station which is normally mounted on a tall building or a tower to broadcast the wireless signal in an uplink (a channel) and in turn, the base station transmits to the same user or other users in another channel known as a down link. Unlike the user who has limited resources, that is, limited number of antennas, limited computation capabilities and limited transmission power, the base station has the ability to use more antennas, higher transmission power and enhanced computation algorithms. The WiMAX service providers have deployed several towers which have ensured access to the service over many miles and its broadband services are now available in all the covered areas. The geographical area coverage is subdivided into overlapping areas known as cells and as the users travel from one cell to another, the wireless connection is also transferred from one cell to the other (WiMAX 2010 p3). This essay will focus on the opportunities and threats in the market and the future of WiMAX. 2.0 WiMAX Opportunities and Challenges 2.1 Opportunities Broadband is increasingly becoming a necessity for many business and residential subscribers worldwide. According to recent analysis, these services have been experiencing rapid growth with over 350 million subscribers worldwide at the end of year 2007 and from 130 million in 2004. The increased growth in mobile data usage has created traffic on the network which has in turn created the need for Quality of Service as well as Quality of Experience testing. Increased mobile data usage has also triggered technological changes such as change from use of copper to optical technologies (4GWE 2011, p 1). WiMAX which is a leading broadband service provider is beginning to make its niche in this market. There are several opportunities in the market for WiMAX with some more viable than others. In several instances, the market opportunities are being addressed by small companies who are coming up with proprietary solutions which mean that new opportunities are not being created but they are being redefined. Many companies have been able to penetrate the market through coming together and creating a standard and thus increased competition and hence lowered the prices. There are several developing and underserved markets. For instance in several parts of the world, copper wire is inexistent and in such a situation, fixed wireless offering would be more economical to use and can easily be vandalized. WiMAX have been providing wireless based stations as well as Consumer Premise Equipments (CPE) to a number of these countries and although the market has been relatively small technology has provided the much needed service in those countries (Mangano 2011 p1). Another opportunity for WiMAX is the DSL and the cable modem replacement and extension. Even in developed countries like Canada and USA there are still parts of this countries where it is not economical to run those cables. In such cases, the technology of a fixed broadband access might be most appropriate alternative. There have been a number of Wireless Internet Providers in these countries which have not been very successful considering the high costs of infrastructure and the number of subscribers being modest. However, with large numbers of WiMAX equipments from the suppliers, it is possible to improve the economics and increase the total market (Schirano 2009 p1) WiMAX is a valuable solution to problems that are experienced by the fixed wireless industry since its beginning. If WiMAX equipments are available to several key suppliers, there will be increased competition from the increased volumes of units been shipped and hence more attractive prices can be achieved. Should Wimax continue being supported by the wireless industry, it is likely to intensify access of broadband services in all the developing regions of the world and in the remote areas where using wireline is uneconomical (Schirano 2009 p1). WiMAX has developed a mobile standard that is not able to coexist with the fixed based solution and this can enable it to offer broadband wireless access in a vehicular environment (4GWE 2011, p 1). Like other wireless technologies, WiMAX will find it economically attractive to offer fixed wireless services in particular parts of the world where deployment of the wireline has not taken place yet or where competition is little. By doing away with the need to deploy fiber or copper, an operator significantly reduces its capital expenditure as well as eliminating the risk of disruption of its services through theft or vandalism and once the consumers learn how to install the CPE themselves, the cost of deployment will be more compelling (4GWE 2011, p 1). Generally, the wireless technology faces the challenge competing with the wireline industry on the basis of the quality of the service-wires are a more predictable and stable medium to communicate over, and to this regard, WiMAX is no different(4GWE 2011, p 1). WiMAX has had and still has opportunities to successfully compete with the wireline industry especially in situation where the wireline infrastructure is not available and if available, it is of low quality and has high maintenance cost or where mobility is desired (Schirano 2009 p1). WiMAX does not compete with fiber, cable, DSL in the access case but it much or less complements in covering the aspect of mobility (Dickey E 2010 p 1). There is an expected future increase in WiMAX deployment globally. According to a research conducted by the Infonetics, the global number of WiMAX subscribers is expected to go up from the current 4 million to around 130 million in 2013 (Aalbers 2010 p1). At the moment, almost all developing countries have a WiMAX network and demand for the Internet access is expected to rise in future. WiMAX appeal to the customers relies heavily on its ability to offer terminals or computers with enhanced mobility as well as ability to access high speed internet without having to connect the terminal to a Wi-Fi hot spot or a cable network. Currently, there are 475 WiMAX networks that have already been deployed to 140 countries all over the world and this with no doubt means that network expansion as well as substantial growth is taking off at a very fast rate (Aalbers 2010 p1). 2.1 Challenges All technologies that are coming up must overcome their own challenges so as to become a market success as well as a technical success and WiMAX is not an exemption. Some of the challenges that WiMAX is facing include the unfavourable RF (Radio Frequency) propagation in comparison to the high spectrum that is to be considered (Mangano 2011 p1). In this case, WiMAX can consider using small antenna technologies which may not be enough, are costly to use and may not be suitable for a vehicular user moving at 120km per hour or even slower. Due to the use of high frequency bands, the number of cell sites increases which in turn increase the cost of acquiring or leasing the sites as well as the cost of construction despite the technology being used (Mangano 2011 p1). For example, in North America, the cost of acquiring a site can cost as much as $25,000 in addition to the ongoing lease cost. On the other hand, the operator may have to part with as much as $75,000 for construction so as to get the site running (Hamblen 2010 p1). There is also the logistic challenge of attaining enough sites for deployment of the mobile network, something that have posed a real threat regardless of the cost (Hamblen 2010 p1). The companies operating in Europe have been struggling to get enough sites for their networks which are being overlayed on 900/1800MHZ GSM network. This means that to get enough sites for the 3.5GHZ WiMAX network, and the high costs associated with this, will be quite difficult for WiMAX (Mangano 2011 p2). This is just one of the reasons why WiMAX prefer to use the Lower Frequency Bands. Another challenge for WiMAX is the availability of chipsets (Hamblen 2010 p2). Beside Fujistu and Intel, other private companies are promising 16e chipset solutions and are likely to beat major suppliers of silicon in the market. These companies have deals with companies such as Alcatel, Alvarion and Siemens so as to make sure that their chips are more widely used for WiMAX technology. It is challenging for them to integrate this technology to PC’s, and prove the worth of WiMAX. Already, the Intel Company has a Wi-Fi chip in each note book and they have plans to develop a Wi-Fi/ WiMAX duel chip which will be the new standard. However, the main challenge is that both radios cannot operate simultaneously, a situation that has brought an argument as to which of them is more effective (Hamblen 2010 p2). It will also be very challenging to have silicon sampling any time soon (Mangano 2011 p2). 3.0 Conclusion From the above analysis, it is worth noting that WiMAX there are many opportunities as well as challenges facing this product. Although WiMAX technology is still at the infancy stage, it has become very popular. This has made it easy for customer to buy an internet plan from anywhere in world without any restriction. This has been a major benefit to the customers which keeps attracting them more and more. WiMAX has also brought broadband internet to people who few or no broadband options. In conclusion, it can be termed as a win- win technology which has benefits for all. References Aalbers J (2010) Digging out - opportunities and challenges in a wireless world. Retrieved on 5th April from http://www.connect-world.com/index.php/component/k2/item/1445-digging-out-opportunities-and-challenges-in-a-wireless-world Dickey E (2010).The Year of WiMAX Retrieved on 5th April from http://www.goingwimax.com/2010-the-year-of-wimax-7455 Hamblen M (2010) Hurdles to WiMAX bright Future. Retrieved on 5th April from http://www.pcworld.com/article/138412/hurdles_to_wimaxs_bright_future.html Mangano Andy (2011) 4G WiMAX - Future of Internet Retrieved on 5th April from http://ezinearticles.com/?4G-WiMAX---The-Future-of-Internet&id=4326188 Schirano M (2009) A look at the future: WiMAX technology Retrieved on 5th April from http://www.associatedcontent.com/article/80538/a_look_at_the_future_wimax_technology_pg2.html?cat=15 WiMAX (2010) Welcome to Your Internet Future. Retrieved on 5th April from http://download.intel.com/network/connectivity/products/wireless/welcome-to-your-internet-future.pdf 4GWE (2011), LTE Deployments Unlock New Opportunities for the World Wireless Protocol Analyzers and Network Monitoring Systems Market, Finds Frost & Sullivan Retrieved on 5th April 2011 from http://4g-wirelessevolution.tmcnet.com/broadband stimulus/news/2011/03/17/5384463.htm Read More