Summary
1) This announcement does not appear to be the major boost that WiMAX requires.
2) Wireless broadband services to date have provided poor connectivity and have not been a match for the combination of DSL and cable broadband services (at home) supplemented by wi-fi on the move (and 3G cards for business users).
3) Experience from the UK shows that wireless broadband services have not had a good reception. The Hong Kong based PCCW launched a wireless Broadband service in 2004 ( in a small part of the UK with attractively priced products. Plans to announce a nationwide service did not materialize.
Analysis
·This announcement does not appear to be the major boost that WiMAX requires.
·WiMAX may provide Sprint Nextel a highly cost-effective network infrastructure solution for delivering broadband wireless Internet connectivity. However, wireless broadband services to date have provided poor connectivity and have not been a match for the combination of DSL and cable broadband services (at home) supplemented by wi-fi on the move (and 3G cards for business users). HSDPA services will provide a further boost for the business market.
·In the UK, there are two companies with WiMAX licences. One of them Pipex is a top 10 ISP and a significant product innovator. However, it has not leveraged its licence – especially given the lack of hardware movement in Europe.
·Once again, experience from the UK shows that wireless broadband services have not had a good reception. The Hong Kong based PCCW launched a wireless Broadband service in 2004 (initially branded netvigator) in a small part of the UK with attractively priced products. ·The coverage was limited to c.700k homes (2.8% of UK) in Thames Valley region. Plans to announce a nationwide service did not materialize. The network is 3.5GHz and is based on the old ionica spectrum. Service is available for non-line of site within 2.5 km and line of site up to 10 km from the mast. The overall experience of PCCW’s service was that it seemed to be unreliable and susceptible to signal degradation caused by objects passing between the customer and the base station.
