Overview

WiMAX will change the way enterprises view telecommunications. Telecom companies must service the customer in this new environment or some one else will. Customers could start demanding lower prices, or they'll turn to a new WiMAX operator or set up their own private network using WiMAX equipment. The technology gives businesses the ability to virtually manage their workforce and add and remove new services and applications quickly.

This publication evaluates the deployment of a WiMAX network for an enterprise in terms of the author's unique analysis methodology of the "Three A's of WiMAX deployment", which are: Access, Affordability and Applications. Access refers to how an enterprise employee might access the Internet or corporate intranet. Internet skills are critical in the job market of 2007 and will be even more so in 2020. Affordability means bringing wireless broadband internet/intranet access to all employees may be surprisingly affordable. Compared to the telephone company's T1, the cost per megabit per employee for WiMAX services is very competitive. In terms of Applications, wireless broadband access and mobile computing come together via WiMAX to offer the enterprise a range of applications limited only by the imagination of enterprise leadership.

This publication explores how WiMAX will change enterprise telecommunications in terms of access, applications and affordability. This matrix ultimately points to WiMAX holding a $36.4 billion market in US enterprises telecommunications services by 2013.

Target Audience for Publication

Incumbent telecom operators
WiMAX solution providers
Vendors for WiMAX and/or the enterprise industries
Enterprise personnel responsible for computing and communications
Investors in the WiMAX space and/or enterprise automation

Table of Contents

3 A's of WiMAX in the Enterprise 1

Introduction: WiMAX, Enterprise Telecommunications and The Next Telecom Boom7
XOHMTMThe Disruptor8
The 3 A's of the WiMAX-enabled Enterprise 10
Access11
IMS Vision12
The Impact of WiMAX on Enterprise Connectivity 14
Why WiMAX as access technology?16
Objections to WiMAX17
WiMAX is not Wi-Fi 18
WiMAX Components19
WiMAX Base Stations19
Outdoor CPE20
Indoor CPE21
USB, Laptop card or similar22
Femtocells 23
Relationship of WiMAX Range and Throughput for Enterprise Applications24
Link budget 25
Limitations of the laptop26

MIMO28
MIMO as interference mitigating technology29
Adaptive Antenna System (AAS) as Interference Mitigation Technology30
Why 3G cannot compete with WiMAX31
Fixed vs. Mobile WiMAX32
Why backhaul is important32
Wireless Backhaul Considerations33
Comparisons with Fiber34
Spectrum Considerations35
Access Conclusion36

Applications 37
Relationship of Connectivity and Productivity37
Applications: Generic39
T1/DS3 Substitute = converged voice + data39
Voice (telephony): the "killer app" for WiMAX41
Disaster Recovery43
Combating high telecom costs and/or Building Diversity45
Applications: Specific-Industry Verticals47
Retail47
Banking50
Healthcare52
Transportation55
Utilities58

Case study: City of Corpus Christi59
Agriculture61
Construction64
Petroleum/Energy 65
Applications Conclusion67
Affordability: WiMAX in the Enterprise 68
Service provider or "roll-your-own"?69
Savings on Existing Expenditures69
Strategies: A) subscribe from WiMAX service provider or 71

B) Deploy own enterprise network71
Custom Built WiMAX Network for Enterprise Private Use 72
Base Station and Enterprise Density 73
Summary Affording WiMAX 74
Conclusion and Projections75

"Landline migration" to "T1 migration"75
Clearwire: a portent of things to come 76
Assumptions79

Tables and Figures

Table 1 3G is technologically inferior to WiMAX31
Table 2 Comparisons of wireless backhaul with other options34
Table 3 Comparisons of wireless vs. fiber optic cable as backhaul solution35
Table 4 WiMAX-related spectrum35
Table 5 What enterprises buy for data solutions40
Table 6 WiMAX prioritizes VoIP packets over data packets for maximum QoS42
Table 7 What does it cost your business per hour to be down?43
Table 8 Availability figures in terms of downtime per year43
Table 9 Generic applications for enterprise WiMAX46
Table 10 Cost comparisons of WiMAX and other forms of access for enterprise telecommunications68
Table 11 Hypothetical comparisons of legacy telco servic prices to that of a XOHM-like WiMAX service provider 71
Table 12 OPEX savings XOHM-type service vs. legacy IT72
Table 13 Hypothetical CAPEX for a WiMAX network to service 100 gas stations74
Table 14 Hypothetical OPEX for gas station chain using WiMAX as substitute for telco services 74
Table 15 Telephone companies are losing 7% of their landline subscriber base every year76

Figure 1 WiMAX offers a broad range of enterprise IT applications at highly competitive pricing and very flexible access 9
Figure 2 The 3 elements that comprise a telecommunications network: Access, switching and transport (backhaul)11
Figure 3 Legacy "stovepipe" infrastructure cannot easily offer more than one service12
Figure 4 IMS allows a subscriber to access any service on any device using any form of access13
Figure 5 Progression of networking: from mainframe to WiMAX15
Figure 6 WiMAX performance parameters make it an excellent enterprise technology... 16
Figure 7 Wi-Fi serves a coffee shop or home. WiMAX serves a city18
Figure 8 WiMAX nomenclature: base station and subscriber station19
Figure 9 WiMAX base station and antenna combinations20
Figure 10 Outdoor CPE provide a superior link budget and QoS for enterprise subscribers in office buildings21
Figure 11 Some indoor CPE incorporate Wi-Fi access points and telephone ports 22
Figure 12 USB access devices make WiMAX access more convenient to use22
Figure 13 Femtocells provide indoor coverage for WiMAX subscribers. This is especially important for use in RF unfriendly buildings23
Figure 14 Line of sight offers better range and throughput than non line of sight24
Figure 15 Link budget illustrated 25
Figure 16 On campus WiMAX delivers a throughput of multiple megabits per second26
Figure 17 WiMAX extends employee access to the enterprise network enabling telecommuting, hoteling, disaster recovery and other enterprise enhancing practices27
Figure 18 8x8 MIMO provides 8 times the data streams of a single antenna system28
Figure 19 Another view of MIMO where multiple antennas enable a bypass of interference29
Figure 20 By utilizing AAS and beam steering technologies, WiMAX mitigates interference30
Figure 21 Backhaul supports WiMAX base stations, which in turn support home office internet/corporate intranet access33
Figure 22 Networking and the work place: the geographic expansion of enterprise telecommunications services38
Figure 23 WiMAX services negate the need for legacy telco T1 services39
Figure 24 WiMAX supports enterprise voice and data40
Figure 25 WiMAX as disaster recovery solution or alternative to telephone company T1 or DSL services44
Figure 26 Destroyed telephone central office, 140 West Street, NYC, across from World Trae Center, September 15, 200145
Figure 27 WiMAX can enable shopping for best price on telecom services46
Figure 28 Retail enterprise-wid adotpions of WiMAX could ad more intelligence in the enterprise making them more profitable48
Figure 29 WiMAX can replace a number of disassociated telecommunications services providing savings to the retailer both in telecommunications and manpower49
Figure 30 Use of WiMAX to network ATMs could save banks on networking costs while providing portability for those machines51
Figure 31 Mobile health car vans or buses could be networked via WiMAX54
Figure 32 The networked ambulance could boost life saving efficiencies for ambulance services 54
Figure 33 WiMAX in support of the delivery industry56
Figure 34 WiMAX can be used to read a wide variety of utility meters59
Figure 35 Farmers need real time information, literally, "in the field"61
Figure 36 WiMAX may serve as a substitute for satellite based services for farmers62
Figure 37 Agriculture implement dealer in Pomeroy, Iowa using pre-WiMAX broadband wireless services63
Figure 38 WiMAX provides almost unlimited telecommunications services for job sites where ever they may be65
Figure 39 Problem solving and solutions inverted pyramid67
Figure 40 Potential telecom expenses for which WiMAX is a substitute and potentially reduces or eliminates some expenses70
Figure 41 An oil company can save on telecommunications by deploying an in-house WiMAX network73
Figure 42 Technology adoption curve77
Figure 43 WiMAX as a substitute for telco landline, T1, DS3 services is an S-curve; it consumes telco market share78
Figure 44 WiMAX will consume 7% of the per year of the US enterprise telecommunications market per year beginning in 201078