October 27, 2008 Does WiMAX Threaten Fixed Wireless Broadband Internet Sales? Many agents now lead with fixed wireless solutions For a couple years now, fixed wireless vendors have been quietly taking business broadband Internet market share from traditional wired Internet vendors by identifying lucrative metro areas to "beam in through the air" cheap Internet bandwidth to business owners from a nearby tower or hillside. Agents and channel partners have been profiting nicely selling fixed wireless where commissions are still pretty fat and the retail price is usually at least 20% cheaper than the comparable wired broadband Internet connection.
Will WiMAX Hurt Fixed Wireless Sales? Probably not as WiMAX and fixed wireless solve two completely different problems (even though some fixed wireless providers erroneously call their service "pre-WiMAX").
Fixed wireless competes directly with wired Internet connections from 768kbps on the low end to 10 megs and above on the high end. When business end users choose fixed wireless over a wired broadband connection they usually do so because of short installation times (days instead of weeks), lower pricing (usually 20% cheaper than a wired connection) or the ability to increase bandwidth (from 1.5 megs to 6.0 megs) with a phone call. Another key difference between WiMAX and fixed wireless is the word "fixed". Like its wired competitor, fixed wireless service is for a business that wants to provide broadband Internet to a stationary business address, not mobile business users moving around outside the businesses main location. WiMAX then is a broadband Internet service that will be primarily used by mobile individuals outside their normal place of business. WiMAX will connect smart mobile phones and laptop computers to the Internet. If anything WiMAX will "compete" mostly against public wi-fi "hotspots" like the ones you find at coffeshops and fast food restaurants. This WiMAX competition will be quite similar to the competition hotspots have faced from cellular broadband cards most corporate road warriors now use to stay connected when they are outside a wi-fi hotspot. The big advantage of WiMAX over wi-fi or existing cellular broadband is the coverage area - WiMAX is supposed to be able to cover larger metro areas with better upload and download speeds than wi-fi or cellular broadband.
Click here or the image above for more information about Sprint's WiMAX service called Xohm.
The Bottom Line Business owners and IT managers turn to agents and channel partners for the best voice and data solutions at the lowest costs. The most important thing telecom agents need to know about WiMAX and fixed wireless is "where it is" or the footprint where the service can be offered and sold. Classical T1 broadband Internet can be sold anywhere the local phone company provides access via their "local loops". WiMAX, like fixed wireless, cable and fiber bypass the local telco loops to access the customer directly. Being able to skip the local loop is what makes the savings and quick installs possible. As telecom agents and channel partners it's critical that for your sales area you know which vendors are offering which services. Next week we'll have a list of which TA vendors are offering which services in which areas.
How Fixed Wireless Works Turn on your speakers and then click here or the banner below to see a simple demonstration from Covad about how fixed wireless brings a broadband Internet connection to businesses.
Sprint WiMAX/Xohm News Video Click here or the video below to watch CNET's news report on the Baltimore launch of Sprint's Xohm WiMAX service.
With WiMax, Sprint cuts the cord in Baltimore
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