Is WiMAX Ready For Prime Time?

While Wi-Fi changed the technology landscape tremendously, the next generation of wireless connectivity, WiMAX, is teetering on the horizon, and its arrival could mark another major upheaval in mobile computing. The question is: When will that happen and how? I recently spoke with Michael Schwab, co-president at D&H Distributing, as well as David Bent, executive director of channel marketing for Lenovo, about what their crystal balls show when it comes to WiMAX. To understand the hurdles to implementation of widespread WiMAX networks, you must first consider the adage — which comes first, the chicken or the egg? WiMAX operates much like our cellular system now, allowing access geographically rather than building by building while providing broadband-speed Internet access via wireless connectivity. In order for WiMAX deployments to gain momentum, the technology needs users to drive demand. But, until there are more mobile products equipped with WiMAX, there is not likely to be much hubbub about increasing WiMAX availability. So, which has to happen first?

While vendors can’t answer that question, they can explain why WiMAX deployments may take another 18 months to two years before gaining much popularity. This is so because, unlike Wi-Fi, WiMAX is installed along geographic lines, often via projects coordinated with a major city, such as Baltimore, which launched WiMAX with Sprint last fall, and Seattle, which first started rolling out WiMAX in 2004 with Clearwire. The best analogy for WiMAX deployments is the rollout of cable decades ago; vendors pay cities to install WiMAX infrastructure and then charge fees to users for access to any point on the network. “This is a proven technology, and it has lots of benefits,” says Schwab. “But, it was more expensive than originally thought, so it has rolled out more slowly than anticipated.” Bent says the best potential for WiMAX deployments may be in verticals such as higher education, school districts, and other large businesses such as hospitals with large physical campuses. “These sorts of larger enterprises could implement WiMAX since fewer base towers are needed to cover a large area than with Wi-Fi,” he explains.

WiMAX Is Still A VAR Opportunity
Despite those minor hurdles, with mobile phones and laptops proliferating, the idea of a blanket of wireless connectivity will most certainly gain popularity. “It is likely that we will see the opportunity for outdoor availability and G3 speed push WiMAX forward, but regardless, it will take a while for the opportunity to be strong enough for a VAR to sell it as a product,” says Schwab. The best bet for VARs will be developing a set of value propositions for businesses such as airports, where connectivity can become a revenue stream. To do that, however, VARs will have to consider how to make WiMAX worth the investment when many of the prime businesses have already invested in wireless or DSL infrastructure.

In the meantime, WiMAX technology is likely to make a splash in other nations before it hits consumers’ must-have lists in the United States. The reason, explains Bent, is due to that existing infrastructure investment. “WiMAX will continue to grow significantly in the near future, and we will see some U.S. cities implementing the WiMAX network as a way to provide more affordable, widespread connectivity in places with no established access right now. WiMAX will also likely play a significant role in developing countries where wired connections are not available and nothing has been invested in other infrastructures.”

While Schwab and Bent agree the technology is ready to roll out, they say the best action for VARs is watching the market and staying informed about how WiMAX is being used when it is implemented. “I would advise VARs to stay knowledgeable about this technology because you will have customers asking for it, especially as WiMAX-enabled hardware rolls out. It is definitely a future opportunity,” says Schwab.