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.

• 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

Introduction: WiMAX, Enterprise Telecommunications and The Next Telecom Boom

XOHMTMThe Disruptor

The 3 A's of the WiMAX-enabled Enterprise

Access

IMS Vision

The Impact of WiMAX on Enterprise Connectivity

Why WiMAX as access technology?

Objections to WiMAX

WiMAX is not Wi-Fi

WiMAX Components

WiMAX Base Stations

Outdoor CPE

Indoor CPE

USB, Laptop card or similar

Femtocells

Relationship of WiMAX Range and Throughput for Enterprise Applications

Link budget

Limitations of the laptop

MIMO

MIMO as interference mitigating technology

Adaptive Antenna System (AAS) as Interference Mitigation Technology

Why 3G cannot compete with WiMAX

Fixed vs. Mobile WiMAX

Why backhaul is important

Wireless Backhaul Considerations

Comparisons with Fiber

Spectrum Considerations

Access Conclusion

Applications

Relationship of Connectivity and Productivity

Applications: Generic

T1/DS3 Substitute = converged voice + data

Voice (telephony): the "killer app" for WiMAX

Disaster Recovery

Combating high telecom costs and/or Building Diversity

Applications: Specific-Industry Verticals

Retail

Banking

Healthcare

Transportation

Utilities

Case study: City of Corpus Christi

Agriculture

Construction

Petroleum/Energy

Applications Conclusion

Affordability: WiMAX in the Enterprise

Service provider or "roll-your-own"?

Savings on Existing Expenditures

Strategies: A) subscribe from WiMAX service provider or

B) Deploy own enterprise network

Custom Built WiMAX Network for Enterprise Private Use

Base Station and Enterprise Density

Summary Affording WiMAX

Conclusion and Projections

"Landline migration" to "T1 migration"

Clearwire: a portent of things to come

Assumptions

Tables and Figures

Table 1 3G is technologically inferior to WiMAX

Table 2 Comparisons of wireless backhaul with other options

Table 3 Comparisons of wireless vs. fiber optic cable as backhaul solution

Table 4 WiMAX-related spectrum

Table 5 What enterprises buy for data solutions

Table 6 WiMAX prioritizes VoIP packets over data packets for maximum QoS

Table 7 What does it cost your business per hour to be down?

Table 8 Availability figures in terms of downtime per year

Table 9 Generic applications for enterprise WiMAX

Table 10 Cost comparisons of WiMAX and other forms of access for enterprise telecommunications

Table 11 Hypothetical comparisons of legacy telco servic prices to that of a XOHM-like WiMAX service provider

Table 12 OPEX savings XOHM-type service vs. legacy IT

Table 13 Hypothetical CAPEX for a WiMAX network to service 100 gas stations

Table 14 Hypothetical OPEX for gas station chain using WiMAX as substitute for telco services

Table 15 Telephone companies are losing 7% of their landline subscriber base every year

Figure 1 WiMAX offers a broad range of enterprise IT applications at highly competitive pricing and very flexible access

Figure 2 The 3 elements that comprise a telecommunications network: Access, switching and transport (backhaul)

Figure 3 Legacy "stovepipe" infrastructure cannot easily offer more than one service

Figure 4 IMS allows a subscriber to access any service on any device using any form of access

Figure 5 Progression of networking: from mainframe to WiMAX

Figure 6 WiMAX performance parameters make it an excellent enterprise technology

Figure 7 Wi-Fi serves a coffee shop or home. WiMAX serves a city

Figure 8 WiMAX nomenclature: base station and subscriber station

Figure 9 WiMAX base station and antenna combinations

Figure 10 Outdoor CPE provide a superior link budget and QoS for enterprise subscribers in office buildings 21

Figure 11 Some indoor CPE incorporate Wi-Fi access points and telephone ports

Figure 12 USB access devices make WiMAX access more convenient to use

Figure 13 Femtocells provide indoor coverage for WiMAX subscribers. This is especially important for use in RF unfriendly buildings

Figure 14 Line of sight offers better range and throughput than non line of sight

Figure 15 Link budget illustrated

Figure 16 On campus WiMAX delivers a throughput of multiple megabits per second

Figure 17 WiMAX extends employee access to the enterprise network enabling telecommuting, hoteling, disaster recovery and other enterprise enhancing practices

Figure 18 8x8 MIMO provides 8 times the data streams of a single antenna system

Figure 19 Another view of MIMO where multiple antennas enable a bypass of interference

Figure 20 By utilizing AAS and beam steering technologies, WiMAX mitigates interference

Figure 21 Backhaul supports WiMAX base stations, which in turn support home office internet/corporate intranet access

Figure 22 Networking and the work place: the geographic expansion of enterprise telecommunications services

Figure 23 WiMAX services negate the need for legacy telco T1 services

Figure 24 WiMAX supports enterprise voice and data

Figure 25 WiMAX as disaster recovery solution or alternative to telephone company T1 or DSL services 44

Figure 26 Destroyed telephone central office, 140 West Street, NYC, across from World Trae Center, September 15, 2001

Figure 27 WiMAX can enable shopping for best price on telecom services

Figure 28 Retail enterprise-wid adotpions of WiMAX could ad more intelligence in the enterprise making them more profitable

Figure 29 WiMAX can replace a number of disassociated telecommunications services providing savings to the retailer both in telecommunications and manpower

Figure 30 Use of WiMAX to network ATMs could save banks on networking costs while providing portability for those machines

Figure 31 Mobile health car vans or buses could be networked via WiMAX

Figure 32 The networked ambulance could boost life saving efficiencies for ambulance services

Figure 33 WiMAX in support of the delivery industry

Figure 34 WiMAX can be used to read a wide variety of utility meters

Figure 35 Farmers need real time information, literally, "in the field"

Figure 36 WiMAX may serve as a substitute for satellite based services for farmers

Figure 37 Agriculture implement dealer in Pomeroy, Iowa using pre-WiMAX broadband wireless services

Figure 38 WiMAX provides almost unlimited telecommunications services for job sites where ever they may be

Figure 39 Problem solving and solutions inverted pyramid

Figure 40 Potential telecom expenses for which WiMAX is a substitute and potentially reduces or eliminates some expenses

Figure 41 An oil company can save on telecommunications by deploying an in-house WiMAX network

Figure 42 Technology adoption curve

Figure 43 WiMAX as a substitute for telco landline, T1, DS3 services is an S-curve; it consumes telco market share

Figure 44 WiMAX will consume 7% of the per year of the US enterprise telecommunications market per year beginning in 2010

Frank Ohrtman has almost 20 years experience in VoIP and wireless applications. He is the president of WMX Systems, LLC, a Denver, Colorado-based consulting and systems integration firm. Mr. Ohrtman learned to perform in-depth research and write succinct analyses during his years as a Navy Intelligence Officer (1981-1991) during which he specialized in electronic intelligence and electronic warfare. He is a veteran of U.S. Navy actions in Lebanon (awarded Navy Expeditionary Medal), Grenada, Libya (awarded Joint Service Commendation Medal), and the Gulf War (awarded National Defense Service Medal).

His telecommunications career began with selling VoIP gateway switches for Netrix Corporation to long distance bypass carriers. He went on to promote softswitch solutions for Lucent Technologies (Qwest Account Manager) and Vsys (Western Region Sales Manager). His consulting clients include national governments and tier one telephone companies.

Mr. Ohrtman is a Gerson Lehrman Group Scholar (http://www.glgcouncils.com) and serves as Dean of WiMAX for Applied Learning Solutions (http://www.e-als.com). He is a regular blogger and contributor to WiMAX.com (http://www.wimax.com) and annual presenter at WiMAX World (http://www.wimaxworld.com) as well as local Cisco Users Groups. Mr. Ohrtman serves as an advisor to Bush Telecommunications Pty Ltd and the Rural Broadband Consortium of Australia.

Mr. Ohrtman holds a Master of Science degree in Telecommunications from Colorado University College of Engineering (master's thesis: "Softswitch As Class 4 Replacement-A Disruptive Technology"), a Master of Arts degree in International Relations from Boston University and a Bachelor of Arts, Political Science, from University of Iowa

Frank may be reached at Frank@MindCommerce.com