Posts Tagged ‘wimax’

4G: Technology Not the Issue

Saturday, January 15th, 2011
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There was a time, several years ago, when one might have gotten a reasonable argument about which flavor of fourth-generation wireless air interface (WiMAX or Long Term Evolution) was “better.” One rarely hears such arguments anymore, for several reasons.

When the world’s dominant GSM carriers all decided to embrace LTE, the “standards war” was effectively over. Much in the same way that Hollywood initially squabbled over HD-DVD and Blu-ray as the superior format to bring HD to the masses, the mobile industry at one point argued about the merits of WiMAX and LTE.

The decisions are of course very important to suppliers who had hoped to create a huge new business based on either of the standards. Intel, for example, had hoped to create huge new demand for WiMAX chipsets.

Beyond the technology differences, though, the key questions now are not over format, but business model. It is typical for supporters of next-generation wireless networks to tout new applications enabled by the new networks. Text messaging is a good example of a feature available on a 2G network that could not be provided on a first generation network. Email was a feature available on 2.5 networks.

Proponents of 3G networks always talked about the new applications that 3G would enable. But it took quite some time before specific 3G applications actually developed. As it turns out, PC dongle access and mobile Internet access turned out to be the new apps 3G enabled on a fairly wide basis. But lots of the other potential applications failed to develop.

The issue for 4G networks is whether new apps actually can be created, and how long it will take before that happens. In the meantime, “4G” mostly means “faster broadband” for most end users. The other important angle is that a new network always brings with it the chance to reset consumer expectations about “typical” features and pricing mechanisms.

For the moment, that is the key issue for 4G network operators. In the near term, 4G is unlikely to mean much other than “faster than 3G” as a core value proposition. But 4G pricing and packaging can be different than typically is the case for 3G, and that will be the near term revenue issue of greatest importance.

Over time, it is likely that other “killer apps” will develop. But that will take some time, in all likelihood.


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Advanced 3G is 4g, Pre-4G is 4G, ITU Says

Tuesday, December 21st, 2010
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The International Telecommunications Union recently defined  “LTE-Advanced” and “WirelessMAN-Advanced” as the only “official definitiions of “fourth generation” networks, automatically making networks operated by Sprint, Clearwire, Verizon, MetroPCS and all other operators of WiMAX and Long Term Evolution networks something other than standards-based “4G” networks.

Now the ITU has muddied the waters even more, saying that some “3G” networks are “4G,” while the formal “pre-4G” networks in existence, or about to be built, also are “4G.”

“As the most advanced technologies currently defined for global wireless mobile broadband communications, IMT-Advanced is considered as “4G”, although it is recognized that this term, while undefined, may also be applied to the forerunners of these technologies, LTE and WiMax, and to other evolved 3G technologies providing a substantial level of improvement in performance and capabilities with respect to the initial third generation systems now deployed,” the ITU says in a new statement.

Huh? Some of us have had no issue with T-Mobile USA saying its new HSPA+ network offers “speeds equivalent to 4G,” because the WiMAX and HSPA+ networks do offer comparable access speeds. But it does create a definitional muddle. It’s one thing for marketplace contestants to position their networks in one way or another.

It might be quite another for a “standards” body to argue that 3G is 4G, existing 4G is 4G, and other possible networks might also be 4G.

What’s the point of a standard when it isn’t a standard any longer? In this case, it might mean that the “non-standard” standards will grow organically to the point that the newly-minted “4G” standard simply ceases to be relevant, much as adherence to the supposedly-”legacy” TCP/IP completely killed the shift to new protocols for layers one through four of the data communications protocols.

One might say the ITU flip flop is merely embarassing, and yet another example of standards bodies attempting to define “next generation” networks. It might result in something far more substantial than that. One might suggest that the whole effort now is questionable, in terms of helping shape the development of 4G.

Once critical mass developments around the real-world 4G and advanced 3G networks, services, revenue elements and devices, evolution will happen based on those factors. That doesn’t mean operators will abandon the effort to keep developing more-capable networks. But as we have seen with TCP/IP and other data “standards,” the market often decides what a standard is.

So far, the markets, and end users, have decided the path for next-generation networks, in large part. That could well happen here as well. No matter what the ITU thinks, if voluntary groups such as the GSM decide to evolve LTE in some other direction, the existence of a formal standard will not deter them.

That is not to fault the well-intentioned hard work of the technologists working on the standard. The point is simply that the global telecommunications industry has yet to prove it can devise a “next-generation” network standard that real-world operators actually embrace obviously, and with great commercial success. Instead, the pattern so far has been that network operators and end users sort of grope towards better solutions as best they can.

But it is equally true that, up to this point, real-world commercial success has not been driven so much by the standards as by solutions that users believe are workable and useful.

For a discussion f the ITU standards, read this: http://www.itu.int/itunews/manager/display.asp?lang=en&year=2008&issue=10&ipage=39&ext=html and this:  http://www.networkworld.com/news/2010/121710-itu-softens-on-the-definition.html.

For a discussion of the change, arguing that the ITU now has erred twice on the same subject, see http://www.abiresearch.com/research_blog/1520.


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Clearwire Hopes to Sell Spectrum, New LTE Network Expected

Wednesday, December 8th, 2010
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Clearwire Corp still hopes to raise as much as $2 billion in new financing by selling excess wireless spectrum, according to its Erik Prusch, Clearwire CFO. That option would in many ways be less messy than possibly having T-Mobile USA join the ownership group.
Clearwire Corp. originally though it could raise as much as $2.5 billion $5 billion, so the current talk of “perhaps $2 billion” might suggest a bit less interest than earlier had been thought.
AT&T, Deutsche Telekom AG, Time Warner Cable and Sprint Nextel Corp. have been rumored to have some interest.
Clearwire earlier was said to be offering spectrum up to 40 Mhz of bandwidth per market. While an argument can be made for bids from any number of potential companies, T-Mobile USA is in some ways the most-motivated. It badly needs spectrum to support its own 4G efforts, has considered leasing capacity from LightSquared, and even if money were no object, would find daunting any other spectrum to buy in the near term, even though at some point other former TV broadcast spectrum should be made available for auction as well.
Time Warner Cable, for its part, could emerge from the process as the only U.S. cable company with its own, fully-owned national wireless footprint, were it to win the auction.
Sprint Nextel, if it actually is bidding, could be signaling it wants to distance itself from the Clearwire relationship, at least in part. Owning its own 4G spectrum would allow Sprint to better control both of its costs, its timetable for upgrades and deployments, as well as its ability to package services. Full control of its own spectrum would allow Sprint to move immediately to build a 4G network using the Long Term Evolution air interface, a move that will at some point allow Sprint Nextel to leverage production volume of LTE handsets and devices.
Verizon and AT&T historically have emerged from most spectrum auctions as key winners, and as the leaders in the U.S. market, arguably have the greatest strategic interest in protecting their lead, at least in part by locking up spectrum that could be used by a competitor. All of that suggests the chances of T-Mobile USA succeeding later, if it does not try to get the Clearwire spectrum, might not be so great.
Also, as the providers with the biggest customer bases, both Verizon and AT&T have the greatest need for more spectrum, and should already be considered front-runners for winning the re-purposed TV spectrum.
http://www.blogger.com/post-edit.g?blogID=7312392900566055630&postID=2510226468774759763

Clearwire Corp still hopes to raise as much as $2 billion in new financing by selling excess wireless spectrum, according to its Erik Prusch, Clearwire CFO. That option would in many ways be less messy than possibly having T-Mobile USA join the ownership group.

Clearwire Corp. originally though it could raise as much as $2.5 billion $5 billion, so the current talk of “perhaps $2 billion” might suggest a bit less interest than earlier had been thought.

But anyway one looks at the matter, a new LTE network is expected to be built using that spectrum, no matter who wins it.

AT&T, Deutsche Telekom AG, Time Warner Cable and Sprint Nextel Corp. have been rumored to have some interest.

Clearwire earlier was said to be offering spectrum up to 40 Mhz of bandwidth per market. While an argument can be made for bids from any number of potential companies, T-Mobile USA is in some ways the most-motivated. It badly needs spectrum to support its own 4G efforts, has considered leasing capacity from LightSquared, and even if money were no object, would find daunting any other spectrum to buy in the near term, even though at some point other former TV broadcast spectrum should be made available for auction as well.

Time Warner Cable, for its part, could emerge from the process as the only U.S. cable company with its own, fully-owned national wireless footprint, were it to win the auction.

Sprint Nextel, if it actually is bidding, could be signaling it wants to distance itself from the Clearwire relationship, at least in part. Owning its own 4G spectrum would allow Sprint to better control both of its costs, its timetable for upgrades and deployments, as well as its ability to package services. Full control of its own spectrum would allow Sprint to move immediately to build a 4G network using the Long Term Evolution air interface, a move that will at some point allow Sprint Nextel to leverage production volume of LTE handsets and devices.

Verizon and AT&T historically have emerged from most spectrum auctions as key winners, and as the leaders in the U.S. market, arguably have the greatest strategic interest in protecting their lead, at least in part by locking up spectrum that could be used by a competitor. All of that suggests the chances of T-Mobile USA succeeding later, if it does not try to get the Clearwire spectrum, might not be so great.

Also, as the providers with the biggest customer bases, both Verizon and AT&T have the greatest need for more spectrum, and should already be considered front-runners for winning the re-purposed TV spectrum.

http://www.blogger.com/post-edit.g?blogID=7312392900566055630&postID=2510226468774759763


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