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In the regions where the service demand is large, the operators generally use optical fibers and WiMAX. As the cost of optical fibers is relatively high, the operators can use WiMAX whose cost is lower to carry the huge traffic flow, and use optical fibers to meet the broadband demand with higher quality
One of the most appealing characteristics of WiMAX is the allure of a well developed open patent pool which facilitates commercial applications worldwide. Lower costs, broader bandwidth, and highly flexible deployment complete the picture. Even in a global financial downturn, WiMAX remains a natural fit. The escalating popularity of Internet services from streaming online videos to music search and hi-def movie downloads has been spurred by ADSL. As demand for wireless data, networks grows, networks become increasingly crowded. As the next generation standard of IEEE802.16, 802.16m can provide excellent ultra broadband performance cost-effectively, making WiMAX one of the best choices for the operators capitalizing on the prevailing interest in broadband Internet.
Clearly, WiMAX is the ideal technology for basic broadband. Worldwide, the use of broadband falls into two categories; basic broadband and enhanced broadband. Basic broadband enables broadband and provides bedrock for broadband services. From basic we move in a very literal way to mobile broadband. While basic broadband provides a strong foundation, enhanced broadband becomes a catalyst for growth.
Realizing basic broadband
As a main force in WiMAX development, Huawei believes that WiMAX is ultimately effective in providing broadband via wireless access. In many developing countries, where compound annual growth rate is as much as 40%, permeation of broadband is often less than 1%. Practical obstacles, such as limited cable resources, land acquisition, limited to no conduit resources and the exorbitant costs of cable network deployment, are typical impediments to broadband growth. It follows that there in these markets operators have to resort to wireless technologies to provide basic broadband. In some cases, expensive satellite access is adopted. In such circumstances, WiMAX becomes the best option for operators.
Looking at the Asia Pacific region, we find many fixed network operators facing equivalent challenges as demand for wireless communication services grows. With proven performance well in line with the mobile broadband growth trends of today's markets, WiMAX is ideally positioned to allow these fixed network operators to remain competitive. For operators who lack copper resources, WiMAX is certainly the best choice.
At the same time, mobile network operators expect good returns from mature 3G networks. Here, WiMAX is a good complement for 3G networks. Rich in frequency spectrum resources, WiMAX uses either fixed or mobile approaches to meet the basic broadband demands of enterprises and home customers. Encouraging content providers, mobile broadband aims to provide broadband access to the Internet anytime and anywhere. Accordingly, service quality expectations move to a higher level. Once again, as the perfect 3G add-on for enabling abundant data services, WiMAX is the answer.
HSPA vs. WiMAX
Compared with basic broadband, enhanced broadband represents a high-level need aiming to meet broadband needs anytime anywhere. Compared with WiMAX, HSPA features expensive frequency spectrum, high tariffs, wide coverage and great mobility. HSPA is corresponding relevant in mobile broadband markets. Increasing throughput over more economic spectrum resources, WiMAX is better qualified to meet market demand for basic broadband.
Symbiotically, HSPA and WiMAX provide a complementary network where each technology enhances the business potential of the other. HSPA offers broad coverage, responding to demand for mobile and basic broadband in the areas not covered by WiMAX. The viability of WiMAX extends outward urban concentrations to address demand for the basic broadband and sharing HSPA traffic loads.
By broadening an operator's bandwidth service into enterprise access market, WiMAX also boosts profitability. This conjoined development model has proven effective in helping operators reduce risk while enhancing competitive strengths and, at the same time, allowing for unification of technology standards as telecoms evolve to 4G networks.
So we believe basic and enhanced broadband will subsequently continue to coexist and complement each other for many years to come. As the most viable solution for basic broadband, WiMAX can expect to see increased application and sustained relevance and technology chain support.
Technical superiority supports WiMAX continued growth
WiMAX represents a shift from ICT to IT, with an original architecture based on All-IP. Therefore, WiMAX has innate features of the Internet such as low cost and openness. The communication industry had a high threshold in the past. But the monopolized market pattern is not conducive to the prosperity of communication industry. The features of WiMAX enable more players to enter this industry, thus speeding up the technology development and the industry more prosperous.
Technical superiority
The irreplaceable technical superiority ensures that WiMAX will have a long lifespan. Resources are the foundation for any network. Because of the uncluttered operating frequency band, low cost, rich frequency spectrum resources and great availability, WiMAX gives the operators more options, thus its ability to provide services is enhanced significantly.
Moreover, WiMAX's ability to deliver the security of high QoS, fast transmission and abundant services is largely enabled by the adoption of advanced, future oriented technologies, such as OFDM/OFDMA, MIMO, and BeamForming. WiMAX allows users to access broadband wirelessly, at the same time, 3G networks enable users to access mobile services with broader bandwidth. So the trend will become more prevalent for 3G and WiMAX networks to converge. Huawei's SingleRAN solution facilitates such convergence by using unified hardware platform with potential to evolve to 802.16m/LTE.
Proven business models
In the emerging markets, the demand for the basic broadband is more urgent. In these markets, the number of broadband users is relatively small. It is a better option for the operators to meet the demand for the basic broadband by using WiMAX and ADSL together. For operators with both 3G license and WiMAX licenses, two networks can be more cost-effectively developed in conjunction.
In the regions where the service demand is large, the operators generally use optical fibers and WiMAX. As the cost of optical fibers is relatively high, the operators can use WiMAX whose cost is lower to carry the huge traffic flow, and use optical fibers to meet the broadband demand with higher quality. This approach is the most cost-effective option for the operators. Therefore, this kind of market will exist for a long period, which will also propel the growth of WiMAX. After all, market is the driving force for the development of a technology.
Though bandwidth of 1 to 2 M/bps is enough to meet the basic demand, the nations with a large population like India are still lacking sufficient frequency spectrum resources. In this case, WiMAX that is rich in frequency spectrum resources enjoys more benefits compared with other broadband technologies.
Globe Telecom in the Philippines provides just one example. With minimal frequency spectrum resources, Globe applied WiMAX to supplement its existing network capabilities. 50 MHz frequency spectrum resources and low construction costs allowed Globe to offer users flexible tariffs that strengthened the company's position as the second largest operator in the island nation.
Huawei supports future oriented WiMAX
As the leading provider of WiMAX solutions, Huawei believes a harmonious environment with mutual benefits is essential for the continued prosperity of our industry.
Huawei therefore fully supports open cooperation with other participants in the industry chain. We have three IOT laboratories across the world and all of them are open to the public. We welcome test proposals from other companies who may wish to join us and future minded operators.
Huawei occupies a leading position in WiMAX industry, but to continue our success, we must grow together with our partners. For growth in a globalized economy, neither key technologies nor standards should be monopolized. Over the past few years, Huawei has actively promoted open air interface and third party terminals.
Currently, more than ten third parties provide terminals to Huawei. Our spirit of cooperation extends to many other parties and, most notably, includes constant joint-lab interoperability testing between Huawei and Intel in several of the world's most important regions.
We have also been promoting the concept of benefit sharing. It is our sincere wish that the stakeholders within a healthy industry chain widen the market and share subsequent profits. While Huawei may lead in the number of WiMAX contracts under the 802.16e standard, we do want to stand alone. We are open to participating with other companies. There are many such instances. For our customer Clearwire in the United States, we work alongside Samsung and Motorola; for Mobility in Saudi Arabia we cooperate with Samsung; to expedite Globe Telecom's networks in Philippines, we introduced third-party terminals to promote WiMAX adoption rates.
Positive about future
Huawei has been promoting the combined use of WiMAX and 3G technologies to meet the global demand for broadband. Huawei's WiMAX strategy is therefore clearly based on continuous long-term investment. As long ago as 2000, Huawei began research on 802.16 technology in 2000. For the better part of a decade, Huawei has evidenced strong commitment to persistent innovation in support of WiMAX.
We believe the WiMAX industry is still in the initial phase of its commercial application. Prior to 2008, the technology was in the phase of preliminary evaluation and trial. From 2010 onward, WiMAX will experience fast development and maturity. This means WiMAX will benefit from maturity as much as two years ahead of LTE's projected 2012/2013 timeline. For some regions a phase of integrated networking will be appropriate while, due to insufficient 3G spectrum resources, others directly opt for mobile WiMAX.
Based on our flexible global strategies, by the end of September 2009, Huawei had signed 58 commercial contracts, including high-end customers such as Clearwire in North America. Confident in our ability to assist operators realize ever greater business goals, we will spare no efforts in continuing our support of WiMAX.
By Wu Hui, Huawei
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