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WiMAX Adoption in Rural Areas

WiMAX Adoption in Rural Areas. Charles A. (Chip) Spann Wireless Business Analyst cspann@connectednation.org www.connectednation.org. WiMAX: What Is It?. Worldwide Interoperability for Microwave Access 3G wireless service – based on 802.16 standards

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WiMAX Adoption in Rural Areas

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  1. WiMAX Adoption in Rural Areas Charles A. (Chip) SpannWireless Business Analystcspann@connectednation.orgwww.connectednation.org

  2. 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

  3. 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

  4. The “Visible” WiMAX Operators

  5. WiMAX: Ecosystem at a Glance

  6. Coveted Spectrum

  7. Where’s the “Beach Front” Spectrum?

  8. Who’s On First? 1st “known” mobile WiMAX system launched by AT&T in Pahrump, NV using WCS spectrum – Nov. 2006 AT&T 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.

  9. 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

  10. 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 – AT&T merger approved with divestiture condition

  11. 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 – AT&T 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”

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

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