Why wait for WiMAX?
The Economist

August 20, 2005
LWHAT has become of WiMAX? This is the wireless technology that is supposed to be about to take over the world, by extending Wi-Fi-like broadband internet access, now available only in small "hotspots", to whole cities, or even whole countries. But, like most new wireless technologies, WiMAX is late: testing to make sure gear from different vendors works together is taking longer than expected, and the first WiMAX products will not be available until early next year. Even then, WiMAX seems unlikely to live up to the initial hype from its proponents, foremost among them Intel. A recent report by Forrester, a consultancy, called for a "reality check" and predicted that the real impact of WiMAX will not be felt before 2010.

But while WiMAX is still stuck on the starting blocks, rival technologies that do the same sort of thing, but are available now, are taking off. In the past few weeks, T-Mobile has announced that it will build a nationwide wireless broadband network in the Czech Republic, using technology provided by IPWireless. The same technology, already deployed in parts of Germany, Britain and New Zealand, will also be used by Netcom Africa to provide wireless broadband access in Nigeria.

Meanwhile, a rival technology from Flarion will be used to provide wireless broadband coverage across Finland, initially in rural areas where fixed-line broadband connections are currently unavailable. On August 11th, Qualcomm, the company that pioneered the technology that underpins third-generation (3G) mobile phones, announced that it would buy Flarion for around $600m, chiefly to gain access to its intellectual property, which is widely expected to form the basis of post-3G networks.

Both IPWireless and Flarion technologies combine fast, Wi-Fi-like internet access with the wide-area "works anywhere" coverage of mobile phones. Slot a suitable card into your laptop and you have a broadband connection you can carry around. Hitherto, such technologies have been used in a few regional networks and small-scale trials. Now they have made the crucial breakthrough to deployment in large-scale, national networks.

Paradoxically, one big factor that has spurred interest from operators is WiMAX hype. "WiMAX has opened up a lot of operators' eyes," says Ronny Haraldsvik of Flarion. But they then realise, he says, that WiMAX is not yet available, and even when it is, it will initially only support access from fixed locations. The first WiMAX devices will be boxes to be fixed to the outside of homes or offices to provide broadband access, and cannot be moved; mobile WiMAX is still years away. As well as being mobile, Flarion and IPWireless "are technologies that work today," says Mike Thelander of Signals Research, a consultancy.

Another factor, says Chris Gilbert, boss of IPWireless, is disappointment with 3G phone networks, which have now been launched in western Europe after much delay. These were expected to provide broadband access over wide areas, but have failed to deliver the high speeds once promised. Operators in eastern Europe, which have yet to build 3G networks, can see that 3G is not the gold mine originally predicted, and are considering alternatives. Roland Mahler, boss of T-Mobile's Czech division, says there was insufficient demand to justify the expense of a 3G network, whereas the IPWireless technology can be ma

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