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WiMax to turbo charge alternative carriers
US market may get competition injection, says analyst

By Tony Hallett

Published: Tuesday 10 August 2004

Alternative telecoms operators in the US are likely to be among the first to benefit from the rise of WiMax wireless technology.

A research note from Meta Group points to WiMax - just now becoming known as a broadband wireless standard that works over wide areas - as a way for some telcos to compete with incumbent local operators for voice services. It means they don't have to use copper lines or voice over IP technology.

The US, since the famous Telecoms Act of 1996, hasn't had much success with long-distance carriers competing in local markets and local, usually Baby Bell, operators competing outside their regions. However, Meta reckons WiMax is a technology capable of changing the playing field.

The analyst house estimates that as with voice services, where the cost per line to an operator is 40 per cent of that of a fixed line when provided using wireless, WiMax can provide more economical data services.

Key benefits for those carriers that adopt WiMax are likely to include lower capital expenses, lower operational expenses, reduced customer turnover and service differentiation, given WiMax will serve fixed locations in homes and over some future mobile handsets.

WiMax is short for Worldwide Interoperability for Microwave Access, also known as IEEE 802.16.