<..Broadband was then bought by Nortel, who of coarse is providing a
huge amount of vendor financing for TGNT-BS. I would think that
Broadband will be happy to sell radios to any paying customer, and
other companies are supplying or working on point to multipoint
systems...>
As you suggest, I'm sure that BNI/NT will sell to anyone. (this seems
more a teddy-bear story to me, Dub <g>)
==============
Broadband Wireless: Market Strategies
Posted January 27, 1998 12:00 PM PST
[An Ovum White Paper]
Broadband wireless systems are broadband networks that use radio as
the principal access technology.
Broadband wireless (also known as wireless cable, MMDS, LMDS or MVDS)
systems have developed as a broadcast response to the high capacity
offered by cable systems. Broadband wireless is very similar to wired
cable in the type of services it can support - the difference is the
delivery mechanism used. A broadband wireless system consists of a
radio transmitter which sends signals on a combination of channels to
numerous receivers, including homes and businesses. The concept of
wireless cable has been around since the 1960s, when tv distribution
services were first developed in the US.
The market is growing worldwide and broadband wireless is a quick and
cheap way to provide high-quality multichannel television services.
There are currently around 5 million subscribers using services
delivered over broadband wireless systems in over 80 countries, with
the US the most important market with over 1 million subscribers. In
recent years broadband wireless, particularly low frequency systems,
have been seen as a way of deploying multi-channel television more
quickly and cheaply than fixed cable or satellite. Broadband wireless
is seen as a serious alternative to wired cable (or satellite) where:
there is no cable infrastructure or it is old and requires upgrade
traditional cable is difficult or expensive to install
satellite services are unlikely to develop (political control)
cost is paramount
competition demands a rapid response.
ÿ
New digital systems promise to offer digital television, interactive
services, fast Internet access and commercial data networking
services.
Several new developments have driven activity in broadband wireless
market:
breakthroughs in radio technology, along with increased industry
confidence in radio following the success of wireless in the local
loop (WLL) and cellular services have dramatically improved confidence
in radio as a reliable access technology
digital technology greatly improves the signal quality of broadband
wireless systems and permits operators to dramatically extend the
amount of data that can be sent across a particular amount of
spectrum.
There are commercial digital networks operational in the US and New
Zealand, and wide-spread commercial deployment is planned for 1998 in
Canada. Licences are due to be issued in the US, Brazil, Korea,
Thailand, the Philippines and many other countries soon.
Telcos and cable companies are becoming worried that broadband
wireless operators are a serious threat in their most lucrative
markets.
The new generation of higher-frequency and digital broadband wireless
technologies promises to offer operators a way of providing broadband
access which:
is cheaper than a fixed solution
is fast to roll out
can be configured to offer one or a combination of applications.
By 2005 the worldwide broadband wireless market will be worth $16
billion.
Market development scenario
Use of broadband wireless systems
Broadband wireless systems will be used by:
New operators wishing to build TV distribution networks rapidly and
cheaply to compete with established cable cos. Also use for SOHO
market - internet access and other data services
Existing cable operators to build out or upgrade rapidly -
temporarily or permanently
Established telcos permitted to enter the 'entertainment' market for
the first time and wishing to deliver services rapidly and cheaply
(e.g., the RBOCs in US)
Telcos, as an interim solution to full service network supporting a
range of telecoms and entertainment service (e.g., Telstra in
Australia?)
Market drivers
Demand for entertainment/information/interactive services
(residential sector)
Demand for lower price business services.
Competition
Low cost of radio-based solutions vs. other technologies
Speed of installation much faster than other technologies
Poor reputation of incumbent operators (eg cable companies in US)
Market barriers
ú Constraints of the technology - most current analogue systems are
bandwidth limited and limited in the services they can support, i.e.,
they only support broadcast, relying on PSTN for return path. Digital
technologies (and LMDS) are largely untested and costly
ú Regulatory constraints, eg limitations on frequencies available. No
standard frequency means that products cannot be developed for world
markets - hence prices will remain high, at least in short term
ú Competing technologies - HFC, FTTH/C/O, LEO, xDSL
ú Social and environmental concerns of microwave installations
ÿ
Market development scenario:
===========*====================*===================*================
Now 5 years 10 years
===========*====================*===================*================
Deployment MMDS quite widely Deployment of MMDS will
of used in US, Middle digital MMDS continue to
broadband East, Eastern will continue be used in
wireless Europe and a few slowly for TV some countries
systems other countries distribution but continued
and Internet deployment
access services will be halted
Trials of LMDS by substitute
in US, Canada, technologies
Germany, Japan, Digital LMDS will
Australia, be deployed by
Thailand, Korea, new operators in LMDS will be
Philippines, Americas and used by new
Panama, Brazil other countries operators
where sufficient worldwide
spectrum available (outside
MVDS trials in at this frequency, Europe).
Germany, including Asia
Switzerland, UK, Pacific
Italy, Sweden, Higher
Norway, Greece frequency
Some European systems
countries will (including
deploy broadband MVDS) will
wireless at 40GHz also be
introduced -
even in the
same markets
===========*====================*===================*================
Now 5 years 10 years
===========*====================*===================*================
Industry Currently Telco/cable cos. Rationalisation
structure fragmented will start to take of operators in
a more active role developed
Media and telecoms markets as
Specialist MMDS/ companies in protection of
LMDS operators in alliances to start up
US and Canada. start up new companies
co. ownership of operators out removed.
wireless operators of area/country.
restricted by
conditions of Developing
ownership. Rationalisation of countries
supply side. Major remain less
Telcos/cable open.
Active equipment telecoms suppliers
suppliers include seeing
specialist radio opportunities More
suppliers, cable will enter market consolidation
system suppliers by buying in. in equipment
and defence supply
contractors. Few
'total solution' Alliances with
suppliers content providers,
specialist radio
vendors will be
important
===========*====================*===================*================
Now 5 years 10 years
===========*====================*===================*================
Technology Most installed MMDS 2.5 GHz for MMDS MMDS will still
and systems are worldwide. Digital be used for TV
standards analogue 2.5-2.7GHz in US, systems distribution
2.1 - 2.5 GHz in more widespread. and limited
ie E. Europe. other A few frequencies data services
frequencies Equipment widely will be used in
available. Digital some countries
MMDS systems being
installed and LMDS at 28GHz
planned. or thereabouts
28 GHz standard widespread.
for digital LMDS 40 GHz growing
Analogue LMDS in US, Canada within and
installed in US, and Latin America, outside Europe
Thailand, Latin E Europe. Asia
America. Digital Pacific may
LMDS/LMCS being support both 28 Higher frequency
installed in Canada and 40GHz for systems at 60
US in 1997. Most point-to-multipoint and 120 GHz
systems use 28Ghz broadband services
frequency band
Integration of
40 GHz standard fixed and mobile
Analogue MVDS in supported in broadband
use in Switzerland Europe wireless
Hong Kong
Work on higher
Point-to-point frequency
broadband radio technologies -
at various bands 60GHz, 120 GHz -
- especially 38GHz progressing
Suppliers working Integration of
towards standards broadband wireless
through with ATM enhances
organisations the business
such as ETSI BRAN service
possibilities
===========*====================*===================*================
Now 5 years 10 years
===========*====================*===================*================
Application Analogue MMDS Digital MMDS MMDS not
supported systems used for supports many developed
broadcast TV over more TV channels further
wide areas - not and asymmetric ÿ
suitable for two two-way services
way services eg high speed Digital
because of limited internet access LMDS/MVDS
return path and expand to
limited capacity. support
Analogue interactive
LMDS/MVDS video, data
Analogue LMDS used used primarily and voice
to support for TV services as
multichannel TV distribution well as TV
education services. distribution.
Limited data Interactive
services Early digital multimedia
LMDS/MVDS services
implementations
Analogue MVDS will be used
supports for business
Multichannel TV services
(eg T1/E1
links, Internet
Some business access)
applications
over
point-to-point Increasing
millimetre wave integration of
radio links point-to-point
and
point-to-multipoint
technologies to
support range of
business
configurations
===========*====================*===================*================
Now 5 years 10 years
===========*====================*===================*================
User types Analogue MMDS/LMDS MMDS and analogue Residential
and MVDS used by LMDS/MVDS will users of
residential users. continue to be basic services
used primarily will migrate
by residential to other
Very limited users solutions.
business
applications
Digital LMDS/MVDS Migration of
early services digital
attractive to services to
small businesses residential
and teleworkers. users. Users
with more
complex
service
requirements
will stay if
service mix
right.
Larger
businesses
will migrate
to fibre
based
solutions.
===========*====================*===================*================
Now 5 years 10 years
===========*====================*===================*================
Competing Currently main MMDS will MMDS will
technology competition from continue to continue to
wired cable compete with compete with
(mostly coax) broadcast broadcast
and terrestrial technologies as technologies
and satellite these evolve
broadcast networks in similar ways
Higher
frequency
Digital LMDS/MVDS systems will
will compete at continue to
first with cable compete with
and telco both cable
technologies and telco
- HFC, PSTN/ISDN, technologies,
leased circuits, including
ADSL fibre and VDSL
Hybrid
solutions
such as
hybrid fibre
radio (FHFR)
will become
more
widespread
===========*====================*===================*================
Now 5 years 10 years
===========*====================*===================*================
Regulation Many countries European Full
are deregulating countries will competition in
telecommunications be deregulated convergent
and entertainment for telecoms. telecoms and
markets, though Broadcast variable entertainment
few have full services in
local loop most developed
competition European countries
countries will
have common
N American agreement on Spectrum
regulators spectrum pricing
encouraging allocations for widely
competition broadband wireless introduced
through for commercial
licensing of radio-based
services such Developing services
as LMDS which countries also
are not service encouraging
specific. competition as Further
Frequencies and a means of advances in
bandwidth being building national international
made available, infrastructures agreements for
with restrictions and enhancing broadband
on incumbents. services. wireless
Spectrum pricing spectrum usage
being addressed
in different ways
===========*====================*===================*================
Now 5 years 10 years
===========*====================*===================*================
Costs Analogue wireless Costs of digital Further price
technologies equipment will falls, as mass
significantly fall as production
cheaper than components become progresses.
alternative more widely CPE prices
technologies. available and make digital
Cost of analogue commercial services viable
MMDS around production for residential
$400 per begins. Prices subscribers.
subscriber acceptable to
business
subscribers
Digital
subscriber
equipment
(set-top boxes
and transceivers)
expensive
===================================================================== |
