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The business of wimax - Pareek D.

Pareek D. The business of wimax - Wiley publishing , 2006. - 330 p.
ISBN-10 0-470-02691
Download (direct link): thebusinessof2006.pdf
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Recently, many cities have also invested in communications and information services and infrastructure. There is a good argument for city/municipal ownership of all critical utilities as a way to enhance the reliability and security of critical infrastructure. As a user, regulator, economic developer and the community’s infrastructure provider of last resort, cities are intimately involved with the local communications infrastructure, yet have very little input or much-needed control.
As the debate heats up regarding homeland security in the USA and public universal service across the globe, many local governments must and will take an active role in the communications services development.
Residential and SoHo
Today this market segment is primarily dependent on the availability of DSL or cable. In some areas the available services may not meet customer expectations for performance or reliability and/or are too expensive. In many rural areas residential customers are limited to low-speed dial-up services. In developing countries there are many regions with no available means for internet access. The analysis will show that the WiMAX technology will enable an operator to economically address this market segment and have a winning business case under a variety of demographic conditions.
7.4 MARKET STRUCTURE
Demographics play a key role in determining the business viability of any telecommunications network. Traditionally, demographic regions are divided into urban, suburban and rural areas.
MARKET STRUCTURE
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Urban
Urban areas are considered to be the main market, rightly so, as urban markets provide the majority of business to most telecom operators. Broadband access is widely available; wireless broadband is also available but is costly. The situation varies widely depending upon status of development. Generally cable or DSL are available universally. Other characteristics of an urban market are:
• centrally located;
• high residential population density with more spending power than the national average and the highest spending power in comparison to other markets in the country;
• well spread infrastructure with the highest quality available in the country;
• highest density of business establishments and the centre of the majority of business activities.
Suburban
Suburban areas are considered an add-on to urban markets, as suburban markets are often seen as an extension of cities and are served by the infrastructure available in the city, with little modification by most telecom operators. Broadband access is available but not reliable and lacks quality; cable and DSL are not available universally. Other characteristics of a suburban market are:
• the distance from major metro areas is not very substantial;
• low-to-moderate residential population density with more spending power than the national average, but lower in comparison to the urban population;
• substantial infrastructure in comparison to rural communities but lacks quality and reliability, especially the telecom infrastructure;
• quite a few business establishments but mostly residential.
Rural
Rural areas are considered the final frontier of the telecom universe as rural markets are complex and often mysterious to telecom operators.
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WiMAX MARKETS
Broadband access is very sparse, if any; cable or DSL (relying on dial-up or satellite) so far only serves rural areas in a few privileged nations. Other characteristics of a rural market are:
• the distance from major metro areas is quite substantial;
• low residential population density with substantially lower spending power than the national average and in comparison to the urban population;
• very little or nonexistent infrastructure, especially telecom infrastructure, which is at minimal levels even in the overdeveloped world;
• little business establishment, agriculture and related activities being the main activities in most rural communities.
8
Economics of WiMAX
Providing cost-effective, affordable wireless bandwidth (almost) everywhere is one of the key success factors for future wireless systems. As the success of the Internet is largely attributed to the fact that it is virtually free of (incremental) charges, it is generally perceived that wireless data communications have to provide services in a similar way. At the end of the day, WiMAX is all about delivering low-cost wireless broadband access (WBA).
8.1 WHY WIRELESS?
While certain drawbacks of wireless technology do exist, there are quite a few benefits that make the implementation of wireless solutions very attractive. The following list demonstrates the primary and most substantial benefits of using wireless technologies:
• Wireless incorporation offers an all-inclusive access technology collection to operate with existing dial-up, cable and DSL technologies.
• The nature of wireless is that it does not require wires or lines to accommodate the data/voice/video pipeline; the system will carry information across geographical areas that are challenging in terms of distance, cost, access and/or time.
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