Depending on VoIP to Market WiMAX

Implications: The shutdown of the Australian WiMAX network by Buzz Broadband is more of a judgment on launching with a VoIP emphasis than the overall viability of WiMax.  

Analysis: The action of Buzz Broadband to close Australia’s first WiMAX network could be the result of flawed marketing and technical deployment.  Buzz Broadband criticized WiMAX as inadequate for VoIP and other Internet applications, while its vendor pointed out that the backhaul was deficient.  The key factor is that Buzz Broadband launched WiMAX by attracting subscribers with an emphasis on the cost benefits of VoIP access.  Buzz Broadband faced the same problem as an inadequate backhaul of T-1s for VoIP on DSL wireline.  And the profile of the mobile user is a high dependency on voice.  At the CTIA tradeshow, ABI Research presented its survey of seven countries showing that voice is still the first priority for selecting a carrier and concluded that “It’s still a voice-centric world”. 
The U.S. launch of WiMAX could face the same problem with marketing campaigns that pursue landline defections and DSL users.  But Sprint Nextel has announced that it will not offer VoIP service until the end of the year.  Sprint’s initial marketing emphasis is data-centric services with portable devices for entertainment and multimedia applications.  For example, Nokia presented a WiMAX tablet at the CTIA conference for the Sprint WiMAX network.  And the rumored joint venture of Sprint with Intel, Comcast and Time Warner Cable could be focused on Intel’s new chips for mobile Internet devices (MIDs).  Australia’s Buzz Broadband did not set a precedent for VoIP reliability on WiMAX, but confirmed that voice capability is a necessity to the mobile user and cannot be merely another Internet application.