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WiMAX Will Take 12% of DSL Subscriber Base
07 May, 2008
A new report from Juniper Research suggests that the burgeoning WiMAX opportunity has the potential to take 12% of DSL customers from existing service providers within 5 years. The report’s author Howard Wilcox says WiMAX will be particularly attractive in “…areas where the existing DSL speed is suboptimal.” Wilcox points out, and rightfully so, that WiMAX deployments will start out as fixed broadband wireless deployments, and WiMAX service providers will aggressively pursue existing broadband subscribers. WiMAX will have a competitive advantage as well – portability. Customers will be able to take their broadband access with them, both locally (where coverage is available), and nationally (assuming adequate roaming relationships get established). That advantage will grab the attention of some existing broadband subs.
Of course, this won’t be a “cake walk” for WiMAX providers either. There are several details to be worked out, the most important of which is proving the technology works on a massive scale and can provide the level of service that customers will expect and demand. Wilcox also points out another important one, “Brand identification and service differentiation are major marketing challenges facing new WiMAX operators.” Predictions like this one are sure to multiply in the wake of the recent news of Sprint and Clearwire joining forces with Intel, Google, and the cable industry for a massive WiMAX boost in the U.S. Assuming the deal consummates and the technology works, WiMAX’s impact on the competitive landscape for both wired and wireless broadband cannot be underestimated.
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Clearwire Outlines 4G World Domination Plans
12 Jun, 2008Clearwire is feeling quite confident these days. The emerging WiMAX provider held an investor conference and outlined their plan for 4G domination. We're "building the communications company of the future, today," says Clearwire CEO Ben Wolf. Clearwire chief strategy officer Scott Richardson calls it "the second coming of the Internet." It was quite the WiMAX pep rally. Clearwire executives say they intend to build a seamless nationwide 4G network way ahead of their competitors, namely Verizon and AT&T.
From a powerpointware perspective, the strategy looks real impressive. Clearwire intends to offer a five product suite of services which will include residential voice and broadband, mobile voice and broadband, and mobile entertainment. They intend to leverage their investor partners considerably, gaining access to tens of millions of existing subscriber relationships immediately. With their cable company partners, they intend to extend the cable entertainment experience "into the palms of consumer's hands." They intend to utilize Google's Android platform for a suite of "compelling" mobile applications. Intel will contribute by powering millions of end user devices and do for WiMAX what it did for Wi-Fi, in effect bringing it to the mainstream. Wolf says that the average consumer's total household spend on communications, ranging from $109-$258, is up for grabs, and they intend to capture as much of it as possible.

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WiMax replacing DSL
I disagree. Where customers have DSL now, WiMax will have difficutly to replace them except by price. Where DSL is not available, WiMax will not deploy - see current experience with EVDO & 3G networks. EVDO is not available except downtown in major citites. It is easy to drive our interstates for hours and not find an EVDO signal using a Verizon Broadband Wireless card. Those areas often have poor or no DSL coverage, but WiMax will not invest to offer service in those areas either.