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WiMAX winning Business Case. SR Telecom. Jalal Benbrahim Market Development Director, EMEA Email: jalal_benbrahim@srtelecom.com. Broadband. Everywhere. Target market. Businesses: Small and Medium Enterprises, banks, government institutions and large corporations SOHO
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WiMAX winning Business Case SR Telecom Jalal Benbrahim Market Development Director, EMEA Email: jalal_benbrahim@srtelecom.com Broadband. Everywhere.
Target market • Businesses: Small and Medium Enterprises, banks, government institutions and large corporations • SOHO • Residential subscribers • Small WISPs that provide WiFi services and hotspot access
Customer Premises Equipment BACKHAUL symmetry Base Station PSTN/Internet Entreprises Customer Premises Equipment SOHO Residential Applications • Backhaul for commercial enterprises such as hotspots and cellular • Broadband on-demand: • Deployment of hotspots and SOHO’s wireless LANs • To offer instantly configurable “on-demand” high speed connectivity for • temporary events, like tradeshows, • Customers with sporadic broadband connectivity requirements. • Residential broadband: BWA technologies help fill the gaps in cable and DSL coverage. • Underserved areas: Wireless Access technology is the choice to serve low density and remote areas for (Local utilities, government, farms,..)
Generic business case assumptions • Number of years: 4; 2005-2008 • 2005: WiMAX-Ready • 2006-2007: WiMAX deployment • 2008: Standardization real Cost reduction • Market: DATA only; voice is added as an option • Year 1: Business customers • Year 2 to 4: Business and residential • Year 4: Backhaul services • CAPEX & OPEX: FWA all Network related element (Access, Switching and transport), frequency licenses,…
Assumptions on standardization bringing cost reduction CPE Cost reduction Cost reduction achieved by volume and self-installed equipement 0% 15% 40% 53% 2006 2008 2005 2007 All cost reduction figures will depend on future volume
Results Positive IRR at month 18 IRR = 11.6% at month 48
WiMAX Sensitivity Analysis
IRR comparison Deploying WiMAX-ready solutions today allow operators to increase their future market share and reduce their future costs by getting used to NLOS and OFDMA technology. Quicker positive IRR & more market penetration Deploying Pre-WiMAX is key to get more future market share
: CPE connected : CPE not connected LOS vs. NLOS coverage NLOS LOS 22% connected with 3m antenna height 28% connected with 5m antenna height 95% connected with 3m antenna height 98% connected with 5m antenna height More Base Stations and BackhaulHigher antenna heightLonger Install Times Higher Cost LOS = =
Benefits of NLOS deployment Deploying NLOS means more customers in an area, less installation costs and then more profits
Market profile – Addressing businesses and Residential Operators can leverage on revenues and CAPEX deployed to address business subscribers to enter residential market. A mix of high revenue generating business customers and high volume residential subscribers is key to build a sustainable business case.
How to build a winning WiMAX business case? • Deploy WiMAX-ready equipment • Get your market share • Familiarize with technology • Deploy field-proven WiMAX-ready equipment • More coverage • Better technology understanding • Efficiency • Less risk • Deploy a stable and flexible WiMAX-ready equipment that will ensure a seamless migration to WiMAX
? ? Questions Jalal Benbrahim Market Development Director, EMEA Email: jalal_benbrahim@srtelecom.com