Despite some vendors claiming to provide WiMAX products, at present,
only a pre-WiMAX solution exists and most vendors are undergoing the
WiMAX Forum certification testing for 802.16d (the fixed wireless
broadband standard). Conformance testing procedures will be held towards
the end of 2005 to determine if the specifications of a vendor's
equipment comply with the Protocol Implementation Conformation Statement
(PICS).
"Once fixed WiMAX i.e. 802.16d equipment get WiMAX certified, service
providers would be more forthcoming in rolling out a nationwide WiMAX
service in the licensed bands", says Luke Thomas, Senior Research
Analyst at Frost and Sullivan (http://wireless.frost.com).
However, the time-to-market issue challenges the success of the WiMAX
market, with the first WiMAX certified 802.16d product anticipated to
penetrate the market only by the first half of 2006. "Also, with
continued delays in the certification process with 802.16d and issues
pertaining to spectrum allocation, other competing technologies such as
Wi-Fi and 3G will gain more momentum within the European wireless
industry," cautions Mr. Thomas.
The mobile standard, 802.16e is the major driver in the European WiMAX
market, which has succeeded in creating the hype that surrounds WiMAX.
Using scalable orthogonal frequency division multiple access (S-OFDMA)
technology, it will offer an immediate portable solution, and ultimately
a full-scale mobile solution, unlike the 802.16d standard.
However, the 802.16e will be ratified by the end of 2005 and the
subsequent certification testing will only take place in the third or
fourth quarter of 2006. "As the mobile WiMAX, 802.16e, will be a
published standard only by the end of 2005, there are growing concerns
if service providers need to immediately roll out a fixed 802.16d
network or wait for the fixed/portable 802.16e standard," explains Mr.
Thomas. "Also, as 802.16d is not compatible with 802.16e, the business
model would vary considerably, depending on which standard the service
provider decides to deploy."
This delay in the rollout of certified 802.16e products will spur the
usage of WiMax as a cost-effective backhaul solution to Wi-Fi hotspots.
Moreover, a backhaul solution in the licensed spectrum will result in
inefficient usage of the available spectrum and service providers will
find it uneconomical to deploy a WiMAX solution in the presence of a
third generation (3G) network rollout.
Spectrum issues also remain to be resolved and most countries in Europe
will pursue WiMAX deployment primarily in the 3.5 GHz spectrum band,
which is a fixed wireless broadband solution. Despite these issues,
since WiMAX can provide fixed and mobile solutions, European member
states are also considering the benefits of introducing a
technology-neutral approach to the 2.5-2.69GHz spectrum bands,
previously earmarked for 3G cellular technologies.
If the 2.5-2.69GHz spectrum band is approved, its allocation will take
place by early 2008. Hence, for the next couple of years, the European
WiMAX market will continue to deploy the 3.5 GHz spectrum band and will
be a fixed wireless broadband service market. This will leave the
European WiMAX market to contend with issues such as inadequate indoor
coverage and the need to deploy a greater number of base stations as
opposed to the 2.5 GHz spectrum band.
Thus, a key issue will be whether European WiMAX will be a fair-play
market, deploying a WiMAX solution in both the 2.5GHz and 3.5GHz
spectrum bands. However, given the fact that a "data-only" Wi-Fi model
has not yet been proven, the success of WiMAX will depend on the ability
to deliver a differentiated service, currently not addressed by Wi-Fi
and/or cellular technologies.
If you are interested in further information about the European WiMAX
Services Market - WiWait for WiMAX in Europe, please send an e-mail to
Janina Hillgrub, Corporate Communications, at Janina.Hillgrub@frost.com,
with the following information: your full name, company name, title,
telephone number, e-mail address, city, state and country. We will send
you the information via e-mail upon receipt of the above information.
Title: European WiMAX Services Market- WiWait for WiMAX in Europe
Code: B628-65
Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been
partnering with clients to support the development of innovative
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