WiMAX: The Case for Low Cost
WirelessDesignAsia writes…Cost counts. In telecom, that goes without saying, but it bears repeating in the case of WiMAX, which is already a highly competitive market even though the first WiMAX Forum-certified equipment is only a few months old.
For WiMAX, cost is critical because it has the potential to be both a complementary and disruptive technology. For example, some cellular operators may offer WiMAX as an adjunct service, as many do today with Wi-Fi, while telcos might use WiMAX to serve customers outside the range of their DSL infrastructure. On the disruptive side, new entrants could use WiMAX to siphon off some 3G and cable broadband customers, or to replace telco copper in cell site backhauls.
Whether those scenarios become reality hinges largely on cost. For both service providers and their customers, the appeal of a new technology depends on its ability to provide a better alternative, with “better” often measured in terms of price. Hence the importance of designs that deftly balance performance and cost, as well as operating expenditures (OPEX) and capital expenditures (CAPEX). The latter are key to a service provider’s business model and competitive position.
For infrastructure vendors, minimizing overhead costs is a matter of survival. At the end of January 2006, roughly 400 companies were developing or selling WiMAX equipment. So although WiMAX is a brand-new technology, the market is already crowded and hypercompetitive. Pricing is one yardstick that service providers will use to guide their purchasing decisions.
