WiMAX in the World: Ideas for Investment
Introduction
Wireless telecommunications are evolving rapidly as countries attempt to support seamless networks that integrate all technologies. A standard based technology that can help make this happen is Wireless Interoperability for Microwave Access, or WiMAX. WiMAX delivers last mile broadband access through fixed, nomadic, and mobile connectivity over licensed radio frequency spectrum (Intel, 2007). The coverage area and capacity for WiMAX is much greater than previous wireless broadband technologies. The future of WiMAX is unfolding as more telecom companies adopt WiMAX as part of their plan for expansion. The following research provides information about where WiMAX is now and where its future may be for an area of investment.
WiMAX Today
The WiMAX Forum is an organization “formed to certify and promote the compatibility and interoperability of broadband wireless products” (WiMAX Forum, 2007). This organization run by industry leaders and has over 500 members. Another organization is the WiMAX Spectrum Owners Alliance, WiSOA. They are also focused on the regulation, commercialization and deployment of WiMAX technologies (WiOSA, 2007).
Newspapers, magazines and websites are discussing WiMAX more and more as deployment continues across the world. Over 55 countries with several locations have rolled out this technology. In the United States, Digital Bridge Communications was one of the first to set up a commercial WiMAX system. Digital Bridge Communications focuses on smaller towns with currently less broadband access. They are one of several companies to deploy WiMAX in the United States. Powerhouse broadband operator, Sprint Nextel, plan to offer WiMAX services beginning in Spring 2008.
As mentioned before, plans for WiMAX are popping up for most telecom companies. The race for spectrum licensing continues as companies worldwide continue to deploy WiMAX. In the news: the 2.6 GHz spectrum was just sold to the highest bidders in Norway; Italian Ministry of Communications is juggling guidelines for the upcoming auction of the 3.5 GHz spectrum; France and Germany recently auctioned off spectrum; and the Federal Communications Commission in the United States will release spectrum to the highest bidder in January 2008.
Recently, the biggest story regarding WiMAX comes from the Radiocommunication Sector of the International Telecommunications Union. On October 19, 2007 a decision was made to include WiMAX as a part of the IMT-2000 set of standards that defines third-generation technologies (ITU, 2007). Which leads into the discussion of the future.
Future of WiMAX
With the support from the ITU, deployment of voice, data and multimedia services to fixed and mobile devices has been increased. In a press release from the ITU, the president of the WiMAX forum states, “WiMAX technology currently has the potential to reach 2.7 billion people. Today's announcement expands the reach to a significantly larger global population."
The president and chairman of the WiMAX Forum is Ron Resnick, also a member of the Mobility Group at Intel. Intel is one of the leading providers of products for technological devices. They currently offer WiMAX chips that support fixed and mobile WiMAX. Now Intel has announced they will begin putting WiMAX/ Wi-Fi modules in notebooks beginning in 2008. By installing compatible chipsets in devices, the opportunity for WiMAX to advance will greatly increase.
Intel isn’t the only telecommunications manufacturer that is offering WiMAX technologies. Samsung products are also being built to support WiMAX with picoChip (WiMAX Day, 2007).
Suggested Area of Investment
Companies soaking up the spectrum space are deploying WiMAX as fast as possible. Investing in these companies isn’t a bad idea, however the largest prospective investment area is the chipset manufactures. WiMAX services will be available to those with the proper technology. How do you get this technology? You buy the chipset to support it. With Intel and many others producing chipsets for WiMAX, this investment area can be expected to see an increase as deployment continues to rise.
In conclusion, WiMAX is proving to be a large prospect for venture capitalists to invest. From success stories, to 2008 outlook plans, WiMAX is a solid technology that is changing broadband connectivity.