WiMAX Adoption in Rural Areas

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WiMAX Adoption in Rural Areas
Charles A. (Chip) SpannWireless Business
Analystcspann_at_connectednation.orgwww.connectedna
tion.org
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WiMAX What Is It?

• Worldwide Interoperability for Microwave Access
• 3G wireless service based on 802.16 standards
• which include both fixed and mobile
  capabilities
• Common misnomer WiFi on steroids
• Ideally suited for most rural deployments

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WiMax Adoption in Rural America Pros and Cons

• Pros
• Cost effective last mile solution
• Single base station can cover large areas
• They make great WiMAX laboratories
• Equipment is also available for unlicensed bands
• Cons
• Limited vertical assets (elevated water tanks,
  etc.)
• Many small towns are in mountainous areas (WV,
  KY, AR)
• Excessive windshield time when encountering
  truck rolls

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The Visible WiMAX Operators
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WiMAX Ecosystem at a Glance
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Coveted Spectrum
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Wheres the Beach Front Spectrum?
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Whos On First?

• 1st known mobile WiMAX system launched by ATT
  in Pahrump, NV using WCS spectrum Nov. 2006
• ATT soft launches additional markets (Juneau,
  AK) Aug. 2007
• 1st claimed mobile WiMAX system launched by
  Digital Bridge Communications in Jackson Hole, WY
  using BRS/EBS spectrum July 2008
• Large scale launch announced by Sprint (Xohm) in
  Baltimore, MD using BRS/EBS spectrum Sept. 2008
• Clearwire launches 54 pre-WiMax markets,
  acquires almost everyone, sets stage for national
  deployment.

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BRS Spectrum What Took So Long To Launch?

• 1990 2000 Addition of PSAs, Digital and Two
  Rules
• ?2001 Mobility allocation
• ?2004 Cellular ability
• ?2005 Transition mandate
• De Facto Lease Agreements
• ?2006 Transitions commence

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BRS History at a Glance Key Drivers

• ?1997 BellSouth enters market
• ?1999 Sprint and Worldcom enter market
• ?2003 Nucentrix Worldcom bankruptcies (Sprint
  allows leases to lapse,
• 2006 BellSouth does same)
• ?2004 Clearwire enters the market
• ?2004 Nextel acquires assets from Nucentrix
  Worldcom bankruptcies for
• 200 million
• 2004 Operators begin paying licensees based on
  spectrum values not
• per subscriber/per channel or gross
  recurring revenue
• ?2005 Sprint/Nextel merger
• 2006 BellSouth ATT merger approved with
  divestiture condition

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BRS History at a Glance Key Drivers (cont.)

• ?2006 Intel and Motorola invest 1B in
  Clearwire
• ?2006 Sprint and Clearwire push WiMAX standards
• ?2006 Spectrum transitions commence
• ?2006 AWS auction price per MHz/POP
• 2006 BellSouth ATT merger with divestiture
  condition
• 2007 700 MHz auction
• 2007 Clearwire acquires BRS/EBS from BellSouth
• 2008 Clearwire and Sprint/Nextel merge wireless
  portfolio to create New Clearwire 3.2
  billion invested from partners

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WiMAX Players to Watch
Vendors Vecima, Alvarion, Redline, Motorola,
Intel Operators New Clearwire, DigitalBridge
and . . . just about any rural WISP with an
entrepreneurial spirit!