WiMAX: What Now?
The Network Operators Decision
March 14, 2006: 9:30 AM
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The core product of the Network Operator, Internet Access, is a commodity product in which the consumer experience is completely indifferent to the method of delivery.  Assuming that basic criteria are met (speed, ease-of-use, cost, time-to-deliver) the end consumer is indifferent about the method in which access is delivered.  A primary goal amongst network operators focuses on the ability to decrease operating and capital expenditures through internal efficiency gains.

For the Wireless Network Operator, the Customer Premise Equipment (CPE) Cost Equation is viewed as one of the most crucial elements in determining one's cost efficiencies.  In a Point-to-Multipoint access strategy, CPE Cost represents the greatest portion of CAPEX.

Generally speaking, if the CPE is too expensive, it will impact the profitability of the operator.  To solve this dilemma, equipment manufacturers banded together to create the WiMAX forum to leverage common manufacturing volumes to drive down the cost of CPE.

After two years of expectations, hard work and a degree of hype, WiMAX has finally left the "trough of disillusionment" with the recent announcement of WiMAX forum certified products.  Industry analysts forecast that fixed wireless WiMAX CPE prices will be at the $300 to $400 level by late 2006 / early 2007.

Interesting enough, on the same day of the landmark WiMAX forum announncecment, two proprietary manufacturers announced the following:

January 17, 2006
Motorola Extends its MOTOwi4Canopy Product Line with a $200 Canopy "Lite" Subscriber Unit*
*$40 Canopy Residential Rebate Program Applies

"This is exciting news for network operators who are searching for a way to grow their business beyond the enterprise market into the lucrative residential arena - The Canopy Lite solution provides on opportunity to offer low-cost, relatively fast-speed connectivity that can grow with the user's needs"

-Tom Hulsebosch, Senior Director of Sales & Marketing, Motorola Canopy Wireless Broadband

January 18, 2006
Trango Introduces New $149 WISP Subscriber Unit
*There's nothing "Lite" About the Atlas FOX

"We truly believe that the introduction of the Atlas Fox wireless modem is the sea-change event that will transform the wireless internet service market into a consumer mass-market service capable of out-competing cable and DSL delivery methods."

-Zdravko Divjak, President & CEO, Trango Broadband Wireless