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Nortel Continues to Bang WiMAX Drum

Claims Cost and Capacity Advantages over 4G Rivals

      

Greenfield operators worldwide have the opportunity to disrupt the mobile market with WiMAX, claims Nortel, stealing a march on rivals betting exclusively on other 4G technologies.


Peter MacKinnon, general manager of Nortel’s WiMAX business, who has been showcasing Nortel’s products at the Broadband World Forum in Paris this week, is dismissive of the short-term threat posed by competitors to WiMAX, including LTE as well as EV-DO Revision C.

“The jury’s out on when you’ll have an ecosystem to support LTE, but I’d say that could be 2009,” says MacKinnon. “WiMAX has a two-year advantage.”

EV-DO faces a similar time-to-market disadvantage, claims MacKinnon, which gives WiMAX an opportunity to be disruptive before those technologies are commercially available.

However, he acknowledges that WiMAX still had hurdles to overcome, especially in European countries, where spectrum in the 2.3GHz and 2.5GHz bands -- the most suitable for WiMAX deployments -- is currently reserved for use with 3GPP technologies.

“What we’re looking at initially in Europe is 3.5GHz, which does require more base stations,” says MacKinnon. “But in the UK, the 2.5GHz spectrum auction is coming up and that will be an interesting space to monitor.”

Nortel is hoping for a technology-agnostic approach, whereby governments allocate the spectrum and the market players decide how best to use it. In the US, Sprint is rolling out its network using lower spectrum bands and claiming the costs of implementation are just 10 percent those of deploying a 3G network.

They are also significantly less than deployments of WiMAX using an older, single antenna technology, says MacKinnon. Nortel is pioneering the development of multiple antennae or MIMO base stations, which are being showcased in Paris this week, and insists that as well as cost advantages these will deliver massive improvements over rival, single antenna systems.

“They offer three times the capacity and so the throughput is increased,” says MacKinnon.

Those capacity and cost benefits will be passed on to consumers, thinks MacKinnon, and could provide the necessary spark that ignites the broadband mobile market worldwide.

“3G has struggled because there needs to be a compelling application and a way to deliver it cost-effectively,” says MacKinnon. “The studies we’ve done show it’s not designed for that. People don’t want to spend another £10 or £20 a month on these things. 10 percent is an order of magnitude reduction, and there’s no reason why you can’t pass a lot of that to end users.”

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