WiMAX Base Station Evolution
By Angeline
15-October
Focus: 4G
WiMAX Base Station Evolution
Sponsored by Alvarion
Opening Presentation: Haig Sarkissian, Wireless 20/20
Alvarion Presentation: Mark Altshuller, WiMAX PLM Senior Director, Alvarion
As the WiMAX market matures and operators face new challenges in deployment across different environments, urban/rural, indoor/outdoor and supporting both macro and Picocells. This webinar will examine the evolution of the WiMAX base station market and the impact of these changes on the operators total cost of ownership, business case and ROI.
Open Range Selects Alvarion® for Largest RUS-funded, Rural Broadband 4G Mobile WiMAX Network Deployment Across 17 States Valued at $100 Million
By Berge Ayvazian
Open Range Communications announced last week that it has selected Alvarion to provide radio access equipment, customer devices (CPE) and systems integration services over the next five years for the largest Rural Utilities Service (RUS) funded broadband wireless deployment spanning 17 states, 546 rural communities, and reaching up to 6 million people. In addition to selecting Alvarion WiMAX Forum® Certified™ 802.16e BreezeMax WiMAX base stations, Open Range will rely on Alvarion’s global experience for the end-to-end integration of its 4G network solution for rural America. Alvarion is not well known for its network integration services in the US, and may need to rely on third party support for the Open Range contract which is expected to be worth more than US$100 million to Alvarion over a five-year implementation period.
Alvarion offers OPEN WiMAX solutions for a wide range of frequency bands supporting a variety of business cases. While many of its larger competitors are now refocusing their 4G efforts on LTE, 
Alvarion is the largest pure-play WiMAX vendor, with overall cumulative WiMAX shipments of more than $500 million and the most extensive WiMAX customer base with over 250 commercial deployments around the globe. Alvarion was the first WiMAX equipment supplier to receive USDA acceptance as well as “Buy American” status from the USDA RUS for two of its BreezeMAX base stations in July 2008. Both RUS and “Buy American” designations are required for operators requesting federal funds from the Rural Broadband Access Loan program for the purpose of purchasing and deploying broadband systems. This is the second major contract funded by the US Department of Agriculture’s Rural Utilities Service (RUS). At CTIA Wireless, Alvarion announced a similar rural deployment in southern Georgia and northern Florida with Main Street Broadband, which has secured $34 million in RUS loan funding. However, Open Range’s project may be ten-times larger and both projects could potentially grow if the operators secure additional broadband stimulus funding later this year.
Open Range Communications has developed several innovative methods for deploying a WiMAX-based broadband network serving the most remote rural communities in the US. Rather than purchasing its own spectrum, Open Range has signed a 30 year agreement to lease mobile satellite spectrum from Globalstar, allowing it to deploy wireless broadband service in rural communities using the Ancillary Terrestrial Component (ATC) authority granted by the Federal Communications Commission in October 2008. The agreement contemplates using up to 19.275 MHz of Globalstar’s ATC spectrum in the 2.4 GHz to 2.5 GHz range to offer dual mode wireless broadband services to more than 500 communities that do not have adequate access to terrestrial-based broadband voice, data and Internet services. Customers outside of the WiMAX coverage area will be able to use Globalstar service over the satellites. Using the build out schedule provided in its RUS funding application, the fixed and variable payments to be made to Globalstar over the 30 year term indicate a present value of between 30 and 40 cents per MHz/Pop. Open Range is also working with Level 3 Communications to access its fiber optic network for high-capacity transport and backhaul links.
Although Alvarion will be deploying its standard BreezeMax IEEE 802.16e base stations and CPE for the Open Range deployment, it will have to address the unique characteristics of the ATC frequency spectrum which is adjacent to the 2.5 GHz band where Clearwire and other US operators are deploying mobile WiMAX networks. Alvarion must program special filters into their base station and customer premise equipment to avoid interference with the unlicensed 2.4 GHz bands used for unlicensed WiFi. As for the satellite component, chips may be available sooner rather than later to support devices moving in between the WiMax and orbital networks. Qualcomm recently announced an initiative to create dual-mode satellite-cellular chipsets for devices and may place dual-mode satellite-WiMAX chips on its roadmap. While devices might not be supported off the shelf, any software adjustments will be minimal, and ultimately chip makers may embed the software directly into their platforms.
Open Range is funded by an investment of $100 million from One Equity Partners (OEP), the private equity arm of JPMorgan Chase & Co., and a $267 million Broadband Access Loan from the United States Department of Agriculture’s Rural Development Utilities Program (RDUP). The OEP investment satisfies the private financing prerequisite loan terms, making the rural broadband funds available to Open Range. Established in 2001, One Equity Partners manages $8 billion of investments and commitments for JPMorgan Chase & Co. in direct private equity transactions. Partnering with management, One Equity Partners invests in transactions that initiate strategic and operational changes in businesses to create long-term value. One Equity Partners has invested approximately $3.5 billion in recent years to acquire over thirty companies in a variety of industries including defense, chemicals, healthcare, technology and manufacturing.
The Open Range network will be built with an all-IP architecture leveraging the latest 4G technology to give millions of rural Americans the ability to enjoy wireless broadband services across the communities where they live and work. Open Range plans to deploy a best-of-breed network infrastructure in more than 500 rural communities which cover over 6 million people, and to initiate state-of-the-art 4G services customers across rural America beginning in the fourth quarter of 2009. In most communities network equipment will be located on existing towers. The business plan calls for coverage to be deployed in un-served and underserved rural communities with average populations of approximately 10,000 people. To date, Open Range has not announced any plans to pursue additional stimulus funding or to form public-private partnerships around this rural broadband deployment.
Open Range’s Simply EasierSM wireless communications services require no home installation, no awkward and unsightly rooftop antennae, no technicians and simple plug-in hardware setup to initiate service. Customers simply connect an Open Range Simply Easier device to a desktop or laptop computer for instant, portable, dependable and low-cost access to the Internet. Open Range will offer to subscribers that will enable not only a hyper-connected Internet lifestyle, but also new economic opportunities not possible before because of the lack of infrastructure.
Some of the unique attributes available through this “always on” wireless broadband network include:
- Simple and instant service activation
- Voice and data capabilities
- WiFi for connectivity to existing PCs
- Highly secure network communication
Open Range’s ambitious plan for rural connectivity has the potential to stimulate local economic development for many rural communities across the US. Within its WiMAX footprint, Open Range plans to deliver portable and eventually mobile voice and data services to its business, consumer and institutional customers. Open Range is the only broadband wireless access provider planning to offer both terrestrial and satellite-based high speed Internet access to reach deeply into un-served and underserved rural American communities. This differentiation could also limit the ecosystem of CPE suppliers and impose a premium on both the subscriber equipment and monthly service fees. Open Range’s hybrid WiMAX and satellite broadband service could also support a variety of innovative public safety and commercial applications, including municipal traffic control, digital signage, remote monitoring and automatic meter reading. In the end, the success of the Open Range wireless broadband network will judged based on its ability to stimulate economic growth, enhance education, improve the quality of life, connect customers and improve public safety in America‘s rural communities while remaining competitive in the mobile Internet age.
China is not closed to WiMAX, says Clearwire’s West
By Caroline Gabriel
The challenge for any new wireless technology is gaining sufficient coverage to support travelling users, and so roaming is essential. At the WiMAX Forum congress this week in Amsterdam, the technology took a step forward in this respect, with 14 companies linking for interoperability and roaming trials. Predictably, one of these was Clearwire, whose director Barry West - possibly WiMAX’ greatest evangelist - was discussing his new role in helping the technology to expand worldwide, saying he believed even China was not a closed door.
When Clearwire gained a new CEO, former Vodafone executive Bill Morrow, recently, West moved to focus on what he probably does best - spreading the WiMAX word, sharing his long expertise in buying and deploying networks at Nextel with less experienced operators, and helping to turn a collection of WiMAX operators into a community that can leverage its collective interests.
The most obvious mutual interest is to buy equipment cost efficiently, something that is hard for start-up or smaller providers, and where West believes Clearwire - with the negotiating power that comes from having $3bn in backers from experienced carriers and other majors - can help in that respect. The promise of the sort of combined buying power that cellcos take for granted will certainly make WiMAX more attractive to many operators that could form the basis of a much extended roaming partnership, and pool of expertise, with Clearwire sitting influentially at the center.
India is an obvious target, and West does not think China’s doors are closed forever to Mobile WiMAX either, despite the country’s dedication to TDD-LTE for the 4G stage. “They are pragmatists. When they see what is coming out of Taiwan and that it is available now, they will want a piece of that,” he told Rethink Wireless.
The Taiwanese ODM ecosystem is massively important to WiMAX’ competitive positioning against LTE because it is capable of delivering products in a huge variety of form factors at low cost and with short time to market, as has been seen in many other sectors including Wi-Fi. Intel’s head of the EMEA region, Gordon Graylish, was talking up this key advantage too, claiming the Taiwanese ecosystem was “not in HSPA because of an IPR situation that chills innovation and increases cost ….. and the stupid IoT processes of cellular”. For all that, Graylish says Intel is “not religious” about mobile technologies - though in the Intel farm, some networks are clearly more equal than others.
The IoT situation where every device is tested against every carrier network is one that WiMAX has sought to reverse, following a model more akin to Wi-Fi with all the testing and certification carried out centrally by the Forum. This has been imperfectly achieved so far, but progress is being made, partly as a result of the active involvement of Taiwan. And the Forum announced that it would change the fee structure for its certification program, to a market pricing model, at its six labs. This was because of improved testing efficiencies, leading to lower costs, said Forum chairman Ron Resnick. “The maturity of devices that we are seeing in the labs takes less time to test compared to a few years ago,” he said, while vendor options for debugging and pre-testing reduces time to market and time in the lab. “The open market model allows for WiMAX Forum certification labs to negotiate directly with vendors,” added Sean Cai, deputy general manager of ZTE’s WiMAX business.
Meanwhile, early stage WiMAX operators have two roaming approaches - handing over to their own or a partner’s 2G/3G network when out of range, as Sprint will do, to maintain connectivity even with a loss of data rate; or handing over to neighboring WiMAX operators (on a national or international basis). The latter is the focus of the latest roaming deal for the platform, whose initial participants include equipment and back office vendors as well as operators. The carriers are Clearwire, Comfone and DigitalBridge, while the enabling suppliers are Intel, Aicent, Cisco, Alvarion, Motorola, Bridgewater Systems, iPass, Juniper Networks, MACH, Syniverse and .
“This trial represents an end-to-end test of roaming over live WiMAX networks and will provide a baseline for establishing roaming services and agreements for WiMAX worldwide,” said Resnick. Previous attempts at roaming clubs have been mainly between operators but this is designed to be a proof of concept, demonstrating to providers that roaming services can be easily implemented.
Open Patent Alliance close to unveiling frameworks, could embrace LTE too
By Caroline Gabriel
The Open Patent Alliance, set up last year to create an IPR framework for WiMAX, will publish its recommended tools, favouring a patent pool approach, “imminently”, and hopes to create a blueprint for the whole 4G world.
The OPA was formed last June, spearheaded by Alcatel-Lucent, Alvarion, Cisco, Clearwire, Huawei, Intel, and Samsung, and plans to unveil its recommended tools, including a patent pool approach, “imminently”. Its president Yung Hahn aims to expand its reach further “to include non-traditional companies”, including representatives from the consumer electronics market, and scored his first major success in this respect last week when he announced the signing-up of notebook giant Acer. In drawing on the experiences of these various sectors, he believes the OPA will be ahead of the curve in mobile broadband technology licensing, and could create a blueprint for the whole 4G world.
The Alliance’s key priority is to establish a set of tools to make patent licensing open, fair, consistent and transparent, initially in WiMAX but potentially, if its methods are proven, also in other technologies. These tools will include a patent pool to work alongside the bilateral deals that are the basis of most cellular licensing, and a short term aim will be to demonstrate a real world pool that works and can win industry confidence. There is something of a “landgrab” among patent pools eager for the business of the new wireless standards, believes Hahn. Several major pools have issued calls for patents or cooperations with LTE bodies, most notably the big two, Via Licensing and MPEG LA. The OPA has also been talking to all the big players and will announce its chosen pool administrator soon.
“Patent pools work or don’t work under different conditions,” Hahn said. “We want to be a real world example of a pool that is working, so people don’t lose hope. That would then lead to the level of participation to make the pool credible and effective to the industry and the courts.”
That level is in itself a controversial topic. In theory a pool only works if all holders of significant fundamental patents sign up, but in practise this almost never happens. “That would be a very high bar, I’m not sure we could meet that,” Hahn conceded. “The question is, what level of participation do we need to be effective? We need to demonstrate to the world that the industry has spoken concerning a fair reference point and price in WiMAX, so that if a judge looked at that reference point and who was standing behind it, he or she could say that was a significant voice with critical mass in the industry. So the question is, what is that critical mass? If 50% of the patents were in the pool would the legal and industry worlds say that was credible?”
Support from the PC sector, even from companies that are not themselves major IPR holders in WiMAX, is important to this credibility, because it brings expertise from different ecosystems, and demonstrates that the 4G vendors and courts need to take account of a wide range of views, going beyond handsets. “We are tickled pink to have Acer join,” said Hahn. “We need the PC and CE ecosystems to be well represented because of the diversity of client devices. If 4G were only dependent on phones, it would be different, there is probably no significant problem with phones. But 4G is all about mobile internet devices, and is far more than the phone vendors.”
Of course, the OPA still needs to get phonemakers on its side - given the driving force of Intel behind the initiative, acceptance in the PC world may be simpler than getting Nokia and Qualcomm to sign up, not to mention the CE giants (though Samsung is a founder member and spans all these worlds). Qualcomm’s patent holdings in OFDM-based technologies like WiMAX and LTE are unclear as yet, but the company famously stays aloof from patent pools and other common frameworks; the increasingly important Chinese device makers also have their own complex IPR issues and will need to be convinced.
These are challenges for all next generation patent initiatives however, and Hahn is confident that the OPA is, at least, setting the pace, and could extend its reach beyond just WiMAX. Referring to recent LTE patent pool activity by Via Licensing, he said “imitation is the best form of flattery” and indicates “the LTE community is thinking patent pools could be the way to go”. There can only be one pool for each technology, and competing technologies cannot be managed within one pool, but a single umbrella organization can run sub-pools for each platform, and can then benefit by offering good terms, especially to vendors that need to license the same patents in multiple pools. The drive, then, will be towards an over-arching patent pool for the 4G technologies, and the OPA clearly intends to use its headstart in the process to make a firm pitch for this important, if deeply political, role. As such, broad support from the various segments where WiMAX hopes to play - PCs, mobile, broadband, consumer electronics and embedded/industrial devices - will all be important, and the signing up of Acer is a step in the right direction.
Wireless Broadband Operators Position Themselves for the Rural Broadband Stimulus
By Berge Ayvazian
More than 1,000 comments were filed when the 60 day public comment period for input into the joint “Request for Information” (RFI) published by NTIA and USDA was scheduled to close on April 13, and late comments continued to be posted on the BTOP web site as recently as May 11.. These federal agencies had set an initial target of approximately 60 days from April 13, or June 12 for officially publishing a Notice of Funds Availability (NOFA) along with grant and loan application guidelines, evaluation and selection criteria. Even if this date may be postponed until the end of June, applicants will likely be asked to submit their proposals within 60-90 days for the $4.7 billion NTIA “Broadband Technology Opportunities Program” (BTOP) $2.5 billion Rural Utilities Services (RUS) Broadband grant and loan programs. The goal is to make the make the first round of funding awards by the end of September.
In an effort to assess how existing service providers are positioning themselves for the “fast track” rural broadband stimulus, I conducted an interview program with four wireless broadband operators, Clearwire, DigitalBridge Communications, Xanadoo and Main Street Broadband. In addition to these interviews, I reviewed their RFI comments, press releases and other relevant information on their web sites. In each case I focused on their BTOP and RUS loan and grant initiatives, their actual rural broadband experience, partnership strategies and unique technology strategy and business case to make rural and small town broadband financial viable. The resulting article provides a starting point for assessing how well each is positioned to leverage the rural broadband stimulus programs.
DigitalBridge Communications (DBC) is a highly experienced operator that currently uses Alvarion equipment to provide fixed wireless broadband services to some 250,000 households (620,000 consumer POPs), businesses, educational, healthcare and public safety institutions in 15 small and medium sized towns and rural communities in Idaho, Montana, Wyoming, South Dakota, Indiana and Virginia. DBC was also one of the first operators to launch standards-based mobile WiMAX, enabling customers with self-install desktop modems and mobile broadband through WiMAX-enabled laptops, netbooks and USB modems. DBC is well positioned to extend wireless broadband and VoIP services to additional rural and underserved regions of the US, leveraging a state-of-the-art network operating center, scalable billing and customer care systems.
Leveraging this experience, DBC filed a response to the NTIA/RUS joint RFI along with the National Rural Telecommunications Cooperative (NRTC). This filing called for RUS to award grants rather than loans, clear grant award criteria, rapid award determinations, and for states to eliminate conflicts of interest by electing how they will participate in BTOP/RUS programs. In this filing, DBC announced its intention to collaborate with NRTC and its more than 1,500 rural telecommunications and electric cooperatives serving 80 percent of US counties. In a subsequent press release, DBC announced that NRTC was among the five Series B investors that participated in its latest round of equity financing. DBC is taking a two prong approach to the broadband stimulus programs.
- Rather than focusing on major metros, DBC is focusing on providing mobile WiMAX service in unserved and underserved markets in a total of 20 states in partnership with county governments in areas where it already has or can obtain access to suitable licensed BRS/EBS spectrum in the 2 GHz. band, and
- DBC is also partnering with the NRTC, which already provides dial-up and satellite-based Internet services, and in wholesale relationship with NRTC members who will perform sales and front office functions.
DBC’s ambitious broadband stimulus plans promise to create jobs through home based call center agents and local sales teams, technicians and managers in each region served. DBC’s experience suggests there is pent up demand in rural markets, suggesting rapid adoption of wireless and mobile broadband. DBC is committed to rapid deployment and estimates that it can rollout WiMAX network to an area of 500,000 households in 6 to 9 months. In addition to NRTC members, DBC is open to partnerships with cable companies, rural telcos, other wireless broadband operators and regional economic development corporations to accelerate network deployment and sales of wireless broadband services. DBC is also working with Alvarion on compatibility, interoperability and certification of WiMAX customer equipment to ensure seamless’ roaming between operators.
Launched in 2006, Xanadoo is one of the first wireless broadband network operators to bring WiMAX services to three states in America’s Heartland, including seven communities in Texas, Oklahoma and Illinois. In early 2009, Xanadoo launched its first innovative, mobile broadband solutions in Springfield and Decatur, IL, with plans to expand into current and future markets. Utilizing the Cisco mobile WiMAX base station and customer equipment (acquired from Navini Networks), Xanadoo is the only North American WiMAX network operator to be selected as a designated Cisco Powered partner. Xanadoo has extensive 2 GHz. spectrum holdings to expand its wireless broadband coverage to underserved markets in 12 states throughout the Midwest, but has been capital constrained in deploying new networks. Xanadoo is also a licensee of 700 MHz spectrum covering almost 1.56 million people in major markets, such as New York, Boston, Philadelphia, Pittsburgh, Cleveland, Detroit, Chicago, Miami, Tampa, San Francisco, Portland and Seattle. Xanadoo expects that a wide range of 4G services will be deployed in the 700 MHz frequency band.
Xanadoo has experience successfully navigating the arduous RUS application process, and repaid its loan early to avoid the many restrictions imposed by this agency in early rounds of funding. Recognizing that the new rural broadband stimulus programs represent a unique opportunity for expansion, Xanadoo is cautiously working behind the scenes to develop the public-private partnerships necessary for submitting successful BTOP grant proposals. The company is considering a variety of partnership strategies to enhance its ability to rapidly deploy and operate WiMAX networks in a much larger 12 state coverage area, but will wait until the rules and selection criteria are published before making these plans public.
Mainstreet Broadband is a young, privately held wireless broadband provider that has successfully navigated the lengthy USDA RUS loan application process over a period of three years to close an initial $34 million loan in January 2009. Leveraging a small equity investment of approximately $7 million from company founders and strategic partner Xiacom Wireless, Mainstreet Broadband is one of the largest RUS funded initiatives to date. Mainstreet Broadband, together with its subsidiary Broadband South LLC, is currently building a wireless broadband network that will ultimately serve some 350,000 households in 66 markets covering 129 rural communities in rural southern Georgia and northern Florida.
Like DigitalBridge, Mainstreet recently announced the selection of Alvarion to supply WiMAX equipment for this project, based on its outstanding resiliency, scalability and service performance.. Alvarion’s solution for Mainstreet has received USDA Rural Development acceptance and complies with “Buy American” requirements of USDA Rural Utilities Service. The Alvarion BreezeMAX customer premise equipment is optimized for low upfront investment and the base station solution can support 2.3/2.5/3.65 frequency bands in the same chassis providing a low total cost of ownership for rural underserved broadband markets.
Mainstreet has also recently expanded its coverage area through the acquisition of Coastal Broadband, a rural wireless ISP using the WCS band to serve Waycross, GA. Mainstreet plans to pursue additional funding from NTIA BTOP and USDA RUS grants and loans to expand into other rural areas in the southeast region. In preparation for these applications, the company is working to develop public-private partnerships with anchor tenants including school districts and regional economic development authorities. The company plans to use low priced and high quality to stimulate adoption of its wireless broadband services and promotes job creation as a key element of its market strategy.
Clearwire is the largest wireless broadband operator in the US, both in terms of network deployments, customers served and spectrum position. After consolidating the 2 GHz spectrum position of Clearwire and Sprint Xohm, the new Clear™ is in the enviable position of having the largest coverage area and more spectrum capacity – some 43 billion MHz PoPs nationwide - than any other US wireless broadband operator. Clearwire currently provides fixed and nomadic wireless broadband services to more than 500,000 subscribers in some 45 markets nationwide, and launched commercial mobile WiMAX services in Portland, Oregon in early 2009.
Clearwire recently updated its plans to rollout its Clear™ mobile WiMAX services for the remainder of 2009 and 2010:
- 2009 - Atlanta and Las Vegas to launch in the summer with Chicago, Charlotte, Dallas/Ft. Worth, Honolulu, Philadelphia, and Seattle among the cities going “Clear” in
- 2009.2010 - New York, Boston, Washington, D.C., Houston and the San Francisco Bay Area lead list of planned Clear launches in 2010.
Although Clearwire’s spectrum position would support extensive WiMAX network deployments in rural unserved and underserved broadband markets, the company plans to focus its capital on building networks in major metropolitan areas across the US to enable the coverage of up to 120 million Americans across 80 markets as mandated by the end of 2010. Clearwire has already initiated network deployments in 75 of these markets with more than 18,000 cell sites deployed to date, and its plans are designed to deliver an unprecedented combination of broadband speed and mobility.
Clearwire currently plans to invest $1.5 to $1.9 billion of the $3.2 billion in capital raised during the merger with Sprint Xohm to build-out its mobile WiMAX networks and finance operations until the business turns cash flow positive. It is widely believed that the company needs an additional $2 billion to $2.3 billion to complete its network plans. Raising additional capital, either through equity or debt, would be challenging and expensive in today’s economy. Gaining access to hundreds of millions in federal broadband stimulus grants and loans would appear to be a high priority for Clearwire’s new CEO and CFO.
Based on our interviews, Clearwire does not view either BTOP or RUS to be one of those game changing opportunities that come along once a decade. Clearwire does not plan to change its current strategy, but is exploring methods of using its existing spectrum, backhaul and WiMAX network operations to extend wireless broadband services to unserved and underserved small towns within reach of its major metros.
One example is the Clearwire plan to work with the state of Georgia to build out a WiMAX network to serve the town of Milledgeville as an outgrowth of the Atlanta network more than 80 miles away in “middle Georgia.” In September 2006, Milledgeville received an $862,000 grant from the Georgia Technology Authority through the Wireless Communities Georgia program to turn the city into one of several model communities to show the benefits of using wireless access to improve economic development, educational access and governmental services. To receive the Wireless Communities Georgia grant, Milledgeville proposed a wireless service that would improve public safety resources, include low-to-moderate income consumers, improve access for area students and help facilitate economic development. The WiMAX network will be designed to help bridge the digital divide and Clearwire will provide a discounted service to low-to-moderate income persons who would not otherwise be able to afford Internet access. To facilitate access for low-to-moderate income persons, the city is partnering with One Community and the Knight Foundation to provide low-interest loans to purchase computer hardware and computer training resources to reach out to the broader Milledgeville community. Public safety is another fundamental application proposed in the city’s grant, and a primary use of the wireless service will be computer-aided dispatch for emergency response personnel. The Milledgeville Police Department will allot part of its technology budget to the purchase of laptop computers so officers will have more efficient and effective access to the Georgia Crime Information Center while on patrol.
However, this example is more of an isolated case rather than part of a larger strategy, and Clearwire is not likely to be distracted from its primary focus by the opportunity to leverage government funding and serve rural broadband markets. Clearwire could apply for federal funding to extend wireless broadband coverage to underserved areas within reach of its major metros, but our interviews revealed uncertainty regarding this approach until the rules and selection criteria are published. Clearwire has been approached by third parties seeking to utilize its spectrum resources as an affiliate to extend service to more rural areas. Without a formal affiliate program, the new Clearwire is considering these offers opportunistically as a way to expand beyond major metros into rural markets. Recognizing that consistent service quality and the Clear™ brand are important to be recognized as the premier service in the 4G space, Clearwire is cautious about using affiliates to provide a unique service package for the rural market. If Clearwire decides to implement a rural wireless broadband stimulus initiative, the company’s senior management would prefer to provide a consistent Clear™ branded offering nationwide.
I will continue to closely monitor the rural broadband stimulus programs and the activities of wireless broadband operators, and we will conduct a 4G Trends Webinar once the rules are published in June. So stay tuned.
Backhaul - in it for the long haul
By Andrew Mitchell
One area of the 4G wireless ecosystem that continues to shine with optimism and growth, even in spite of our troubled economy, is backhaul. That optimism and growth comes as a result of innovation and technology advance, driven by the expectations of increasingly more mobile lifestyles and businesses and the demand for anywhere IP connectivity.
Alan Solheim, VP Product Management, Business Development at DragonWave shared with 4G Trends that “most business comes from WiMAX and is still growing in spite of the delays at Clear.” In business since 2000, DragonWave has been witness to much change in the backhaul market and according to Solheim those changes are going to continue in emerging markets. “Pakistan is number 2 for Orascom - Mobilink has been offering business broadband and now mobility. That and the migration of 2G users represents real opportunity for backhaul.”
Optimism is also being underscored in developed markets, like the United States. According to Ashish Sharma, VP Corporate Market Development, Alvarion, the opportunites associated with US stimulus funding, NTIA BTOP and RUS, “are real because of their deadlines.” Sharma went on to explain that Alvarion is “the only approved vendor for WiMAX with Buy America status.” Alvarion is a strong supporter of WiMAX and the WiMAX Forum and product certification. “Inter-op is an expensive process but it helps operators to integrate,” said Sharma of the value of certification.
Amir Zoufonoun, CEO and Founder of Exalt Communications, a newer player to the backhaul game says that “spectrum challenges are forcing carriers, operators and enterprises to capitalize on what they have.” Exalt has been advancing the technology of their products through the use of adaptive modulation, daisy-chain link aggregation and support of features such as QoS and port-based VLANs. Because there’s often a legacy investment to be supported, Exalt includes TDM capabilities and integrated DCC in their products.
On March 2, 2009, Harris Stratex Networks announced that it had acquired Telsima Corporation. As Stuart Little, Director, Corporate Marketing outlined “by acquiring Telsima we’re not just backhaul, we’re extending an end-to-end WiMAX, 802.16e solution.” Harris Stratex also sees the demand for mobile backhaul in European markets as opportunities for growth as 3G carriers there begin the journey to 4G. With the newly acquired capabilities of Telsima, Little says that “fixed WiMAX in Asian, Latin American and African markets represent real opportunity.” Harris Stratex also recognizes the need for innovation and advancement and has developed Adaptive Optimization technology in their Eclipse Packet Node wireless platform to leverage the capabilities of adaptive modulation while maintaining carrier grade reliability for IP services.
As the tide of 4G applications advances and with LTE deployments beginning to appear on the horizon it is clear that we will see further innovations and opportunities for backhaul vendors. Although in many instances backhaul technology is almost agnostic of the end network, WiMAX would still seem to be a technology that is deemed as a driver in near-term markets.
National Broadband Policy Debated During Wireless Operator Roundtable at CTIA Wireless 2009
By Berge Ayvazian
On April 9th, the FCC officially opened the 60 day comment period, soliciting input for the nationwide broadband plan it was charged by Congress to complete by February 2010. The American Recovery and Reinvestment Act of 2009 authorized the investment of $7.2 billion for broadband network infrastructure development in the US, with the stated goal of bringing high-speed Internet service to the entire country. In the Recovery Act, Congress authorized the US Department of Agriculture Rural Utility Service (RUS) to make $2.5 billion in broadband grants and loans and appropriated $4.7 billion for the Department of Commerce (Commerce) National Telecommunications and Information Administration (NTIA) to establish the Broadband Technology Opportunities Program (BTOP) to develop and expand broadband services to unserved and underserved areas and to improve access to broadband by public safety agencies.
Wireless operators had a unique opportunity a week earlier at CTIA 2009 to be briefed on these broadband stimulus programs during a Wireless Operator Roundtable, sponsored by wireless broadband equipment provider Alvarion and hosted by Wireless 20/20 and the WCA International (WCAI). After a welcome message from Alvarion Corporate Vice President Mo Shakouri, Fred Campbell, CEO of WCAI and Former Wireless Bureau Chief of the FCC, provided an overview of these broadband loan and grant programs, including the $4.7B in grants for the NTIA Broadband Technology Opportunities Program. Randy Jenkins, RUS Broadband Field Specialist, also delivered an opening presentation on the $2.5 billion in grants, loans and loan guarantees that will be provided for broadband infrastructure by the USDA Rural Utility Service. James Schlichting, Acting Chief of the Wireless Telecommunications Bureau of the FCC, described the role of the FCC will be to help provide coordination between the NTIA and RUS programs and develop a nationwide broadband plan by February 2010.
Following these opening presentations, I had the privilege to moderate a roundtable discussion among the speakers, seven leading wireless operators (Clearwire, Sprint, AT&T, Comcast, DigitalBridge Communications, Xanadoo and Main Street Broadband), as well as industry leaders from Alvarion, Intel and the WiMAX Forum. I opened the roundtable with a fundamental question: Do wireless operators really have a clear understanding of NTIA’s BTOP grant program and the Department of Agriculture’s Rural Utility Service (RUS) grant and loan programs? The consensus was that more work was needed to clarify the key objectives, definitions and eligibility requirements to be used in implementing these programs.
Fred Campbell clarified the objectives of BTOP to improve access to broadband service by public safety agencies and expand the availability of broadband access in “un-served” areas and provide “improved” broadband access in “underserved” areas. He noted, however, that language in the recovery act does not adequately define “un-served” and “underserved” areas or “broadband speed”, but states only the objective to provide the greatest broadband speed possible to the greatest population of users.” Randy Jenkins from RUS expected that these terms will be better defined once the guidelines for grants and loans are finalized. He emphasized that RUS and BTOP funds could also be used to stimulate demand for broadband service, and to facilitate greater use of broadband service by low-income, unemployed, aged, and otherwise vulnerable populations. James Schlichting predicted BTOP and RUS rules will likely require applicants to fund at least 20% of the total cost of the project, and applicants must provide assurances that projects can be completed in 2 years since the intent of the funding is for near-term job creation, stimulus and economic growth. Applicants can propose broadband education, training, equipment and access support to schools, libraries, medical, healthcare providers, and other community outreach and support entities.
I also asked roundtable participants whether priority should be given to applicants that have a successful track record of providing broadband services to rural and remote communities. Kelly Dunne, CEO of Digital Bridge Communications, observed that several wireless operators have already initiated wireless network deployments targeting the expansion of broadband service availability in underserved markets and remote areas of the US. As a wireless broadband service provider specializing in smaller markets, he noted that in the current economy broadband access allows residents to search and apply for more jobs than they could without broadband. Dunne also indicated that DigitalBridge often leverages the insight of local community organizations which may be well positioned to understand the needs of their constituents, how to best increase availability and improve the quality of broadband service and make broadband more affordable.
I also asked roundtable participants whether any consideration or priority should be given to proposals that offer cost-effective wireless and mobile broadband network solutions. Barry West, President of Clearwire, spoke on behalf of wireless operator participants, stating “the US has an opportunity to take a leadership role in the mobile broadband internet, providing obvious benefits from increased productivity, work force flexibility and green environmental impact through increased telecommuting and reduced miles driven”.
Tzvika Friedman, CEO of Alvarion, provided the conclusion for the roundtable. “Investments in broadband and its impact on GDP growth have been well documented and it is great to see the US government taking an active role and initiative in funding broadband policy.” After the meeting, Wireless 20/20 offered demonstrations of its WiROITM Business Case Analysis Tool that has been enhanced to enable municipalities and operators to model the effects of federal grant subsidies and loan funding in a 10-year business case for proposed broadband networks and services. The day after the roundtable, Alvarion announced it was chosen by Main Street Broadband for one of the largest RUS funded projects, with $34 million in funding received for wireless broadband network deployment in 66 markets covering 129 rural communities in Florida and Georgia through its wholly owned subsidiary Broadband South and strategic partnership with Xiocom Wireless, Inc.
This wireless operator roundtable provided participants the opportunity to offer input and feedback regarding the FCC’s role to develop a national broadband strategy over the next twelve months. This discussion set the stage for greater debate on the guidelines for the RUS and BTOP funding programs and the policies to be included in the FCC’s national broadband plan.
WiMAX Voice Heard at MWC with Flexibility Message
By Caroline Gabriel
WiMAX has always had a tough job to make its voice heard loudly at Mobile World Congress, because of the show’s roots in the 3G community, and this year was always going to be particularly hard, because of the wave of momentum behind LTE, as it reaches the peak of the hype curve. WiMAX enjoyed that place on the curve a couple of years ago, and now has to take a different approach, which the ecosystem has addressed enthusiastically at MWC, giving the technology a profile beyond what many expected.
Tuesday morning saw Intel hosting a panel of the great and the good of WiMAX, with senior executives from major vendors joining 802.16’s great cheerleader, Intel’s senior VP and CMO Sean Maloney. These were asked the question: ‘What game changing WiMAX initiative will your company deliver in 2009?’ Many of the responses focused on the wider WiMAX story, and if listeners were hoping for promises of killer devices or significant standards upgrades, they would have been disappointed. In fact, changing the game is all about ‘growing up’ – placing WiMAX in a wide and mature ecosystem and delivering end-to-end systems cost effectively and flexibly. In a recession, dramatic new technology enhancements are to be mistrusted, bringing risk and potential delay – and downturn makes a virtue out of the duller focuses, on ready availability of equipment, a broadening ecosystem, and on harnessing what is already there (Wi-Fi devices, for instance, in Clearwire’s case).
So Alvarion and Cisco were attacking the end-to-end issue from different standpoints, each stressing that working with partners or other parts of their own firm would deliver a solid IP core story for WiMAX as well as a widening range of device alternatives. Motorola was also focusing on proliferating its CPE types to suit a whole range of operator and consumer requirements in emerging and mature economies, and on leveraging the Wi-Fi installed base in the home and laptop. Nokia Siemens and Alcatel-Lucent have both been reported in recent months to be backing away from WiMAX, and clearly their most important target customer base lies with the major cellcos, whose natural bent in many cases will be to adopt HSPA and eventually LTE. But ALU’s WiMAX VP Karim El Naggar and NSN’s head of radio access strategy Markku Ellila were both vehement that WiMAX was a full commitment, and again, stressed the theme of widening the range of supported business cases, from simple fixed access to embedded or machine-to-machine networks to full open web applications – and so appealing to operators from outside the traditional cellular handset structure. And ZTE and Huwaei were both aggressive about supporting the entire range of wireless platforms, according to operator requirements.
So, coexistence with 2G and Wi-Fi; flexibility and openness of model; a steady increase in the range of devices (with a focus on affordability and time to market); and the maintenance of a two-year market availability lead on LTE – these seem to be the credo of WiMAX in 2009, and all these points are designed to play to the needs of operators facing capital crunch and consumer slowdown.
Meanwhile, the WIMAX Forum has announced that 802.16 networks now cover 430m people worldwide and are on a path to nearly double to 800m pops by end of 2010. This is based on almost 460 deployments in 135 countries, and new roll-outs will be driven by auctions in India and Brazil, among others. “In both emerging markets and mature countries, companies and governments are deploying 4G WiMAX networks to help bridge the digital divide,” said Intel’s Maloney.
Nortel Pulls Plug on Mobile WiMAX
By Andrew Mitchell
Is Nortel’s announced departure from WiMAX a harbinger for the ecosystem or is it simply a pragmatic business decision? There is no doubt about it, for many years Canadian based Nortel was considered a bellwether of the telecommunications industry. Lately though it has served as more of a disappointment for investors than as the industry leader it once was. Should the WiMAX industry take notice to Nortel’s recent announcement?
Richard Lowe, President of Carrier Networks at Nortel delivered a very succinct message in last week’s press release. He stated, “We are taking rapid action to narrow our strategic focus to areas where we can drive maximum return on investment. For Nortel’s creditors this would seem to be a step in the right direction but may not a step in the direction that mobile WiMAX joint venture partner Alvarion might have wanted to hear.
Alvarion delivered a prompt and realistic synopsis of the exit. Reacting to the announcement by Nortel, Alvarion’s President and CEO, Tzvika Friedman responded, “We are obviously disappointed in the direction this has taken; however, Alvarion’s industry position has never been stronger.” The financial disappointment that this brings to Alvarion is about $2.4 million of non-recognizable revenue. Beyond that though comes the impact of a shaken investment community.
What is interesting about Nortel’s announcement is the impression it leaves in respect of LTE. Is LTE going to provide the maximum return on investment that Richard Lowe speaks of? Rumors and speculation abounded in late Q3 last year with the release of Nortel’s financial report that it was actually the LTE business that might be a risk. What seemed obvious at the time was that the relationship with Alvarion was a good one mobile WiMAX R&D for both companies. Will the relationship Nortel has with LG going to survive the turmoil?
The summary position for Nortel is that it has placed its bet on the success of trials of LTE with likes of Verizon and KDDI. This might be a promising bet if carriers are ready to advance to LTE. Some though might opt to take the longer path, by way of HSPA+, offering similar user speeds but less carrier investment and that could mean a little less return for Nortel’s investment. The mobile WiMAX and investment communities will be watching this results of this decision closely to see whether the tenacity of Alvarion or the hopes of Nortel will ultimately prevail.
