Why WIMAX will succeed?

If you have been following the telecom development, chances are that you would have heard about WiMAX. WiMAX is the next generation connectivity standard and is pushed hard by its proponents, which include heavy weights like Sprint, Intel and Samsung. On the other hand we have the detractors in Ericsson, Verizon Wireless, and Qualcomm who are betting against it. You can read more about the debate here but the point I want to make here is that WiMAX is here to stay and mobile WiMAX is the next big thing. Please note that this article is focused on mobile WiMAX, as even the detractors agree that "fixed" WiMAX will flourish.

The opponents of WiMAX are quick to point out that the 3G platform will be able to outperform the WiMAX offering on all counts and hence there is no reason that we should invest in alternative technology. I beg to differ. Let me list down a few points to justify my claim:

1. Reach: WiMAX can provide connectivity over a very large area, around 12 mile. This implies that for reach similar to the existing cellular providers, WiMAX will have much lower expenses.

2. Optimized for Data: Unlike the cellular network, WiMAX is designed as an Internet access technology and hence optimized for data.

3.Other devices: The major push to WiMAX would be from other WiMAX enabled devices. Chip designers like Intel, Sequens and Beceem are already pushing WiMAX as a mass market technology.

4.No SIM or Contracts: WiMAX chips will be embedded in devices like laptops, mobiles, and other consumer devices. So, you would not have to purchase a SIM (Subscriber Identity Module) to activate your devices or purchase expensive contracts to use your devices. Wouldn't you love to have the iPhone without the contract from AT&T?

5.Lower cost: Since WiMAX will be used for not only voice, its uses are only limited by imagination. This will result in lower cost of usage, unlike the cellular network, which is primarily used for voice.

6.Sprint effect: The presence of Sprint in the supporting camp is a very big factor for WiMAX's possible success. Sprint already has a huge network. This will make it even easier to deploy WiMAX. The costs would be even lower, as the WiMAX devices can ride on the antennas owned by Sprint.

7.Balance of power: Nobody likes monopoly. The cellular providers are exploiting their network and charging the customer who does not have a choice. Cellular providers charge up to $0.15 to receive text messages. This is purely rent seeking.

With a rival technology in WiMAX, this will provide a much needed choice to the consumer and reduce this exploitation by the cellular providers.

It's not a coincidence that opponents to WiMAX include cellular networks or cellular component manufacturers. A lot depends on how the pilots go in the Chicago and Washington D.C. this spring. But I really feel that WiMAX has a great potential and we will soon see it in action.

If any of you have had an experience with WiMAX or have an opinion on it, please share.

This article has been written by our VoIP news editor Alok Saboo. Alok is pursuing his PhD in Marketing at the Pennsylvania State University.