Wimax's star is rising

Two versions
Wimax is a radio technology, which is used for IP-based communications traffic, and stands for Worldwide Interoperability for Microwave Access. The technology is based on the 802.16 standard of the innovative technology company Institute of Electrical and Electronics Engineers (IEEE). There are two versions: D and E.

Remote areas
The D version is the 'fixed' version, which can establish point-to-multipoint connections. The fixed version is used to connect UMTS masts and Wi-Fi hotspots wirelessly to a fixed network. That usually happens where it's impossible to make a direct connection to the (own) network. Wimax stretches the signal and tries to find a connection with a fixed network elsewhere. The D version can also be used to supply remote areas with an internet connection. In ideal circumstances, distances of up to ten or fifteen kilometres can be reached. This fixed version also has a more mobile variant, which allows the user to move freely within the reach of a Wimax mast. However, the connection will be lost when the user leaves the active radius.

Unlimited mobile communication
The other version, the E version, is also called mobile Wimax and is in a completely different league than the D version. Its practical reach is only a few kilometres, but that's not so important for the exploitation of this licence. Usually, the more consumers living in an area, the more masts are installed to offer a guaranteed level of quality. In contrast to the fixed Wimax version, you can travel more freely with the mobile version with a Wimax receiver (phone, PDA, computer) without losing reception. It's similar to mobile telephony's cell handover concept, with which you can also enjoy uninterrupted communication in a moving car or train.

Maturing market
"The Wimax E version and UMTS are direct competitors," says Jan de Nijs of TNO Telecom. "Wimax doesn't necessarily offer different services, but the same services may be cheaper. Price competition in mobile broadband is increasing via Wimax, UMTS, and its successor HSDPA.''
Once the Wimax market matures, which could take years, consumers will have a broader selection of service providers and mobile broadband service technologies that offer nationwide reach, such as mobile internet, VoIP (cheap internet telephony) and mobile television.

Wimax products
Chip and wireless product manufacturers founded the Wimax Forum in April 2001 to speed up standardisation on various fronts, including hardware, quality of service, safety and frequency usage. Their efforts led to the first generation of partly certified products entering the market. International companies like Alcatel, Intel, Motorola and Samsung are working hard to develop and produce Wimax products. In mid-2006, Intel invested hundreds of millions of euros in companies that have a Wimax licence, awarded by their local governments. "Intel and the other manufacturers haven't managed to gain a strong market position in GSM, GPRS and UMTS. They're trying to fix that with Wimax", says Jan de Nijs.

Wimax licences
There are currently two Wimax licences in use in the Netherlands - one with Casema that expires at the end of 2008, and another with Enertel/Worldmax that runs until the end of 2015. While the Enertel licence is only meant for fixed connections, the company is convinced that legislation within the next three years will change in such a way that it will be aloud to offer mobile services as well. Casema, a Dutch cable company, aims to have a fully functioning mobile broadband network before the end of 2008. According to Mirko Mensink, Casema's director of strategy, the installation of it will cost roughly a quarter of what it costs to lay a UMTS network. Casema would like to offer nationwide broadband mobile data services and is planning to offer its clients mobile VoIP from 2008. "To do this", says Mensink, "you have to take over a mobile telecom operator, create a Mobile Virtual Network Operator construction, or take a look at the latest technology. Seeing as the first two options are out of the question, Wimax offers a way forward, with the added benefit that a Wimax operator has a fairly high level of control over the quality levels per application."

GSM leads the way
Jan de Nijs expects that Wimax will gain ground a lot faster than GSM did. "A learning curve is necessary for the market to mature. We now have the experience of the GSM era to draw from." Casema Director, Mensink, agrees: "You're already seeing that the E version, or mobile Wimax, is developing at a rapid pace at the hardware manufacturers. We're already investing a lot in this trailblazing technology, in terms of trade, technology and collaboration agreements and we've employed a lot of people who were former mobile telecom company employees."
De Nijs has a clear view on Wimax's impact on the current market. Wimax, in its broadest sense, is according to him all about convergence. 'Fixed' network operators will offer something extra, while mobile operators will continue to offer what they have, i.e. UMTS and HSDPA.