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Is "Fixed Wireless"
Broadband Internet Access Starting a Price War?
By Dan Baldwin, Sales Director,
ATEL Communications Inc.
Before having
my customers sign or renew a long term agreement for broadband
Internet access, I make sure they've taken a new look at fixed
wireless – it's not just for the boondocks anymore.
Definition
– Fixed wireless broadband works the same way as DSL, cable or
T1 broadband Internet access except that the connection between
the broadband provider and the broadband customer is transmitted
between two microwave dishes. One microwave dish is on the roof
of the business customer's building. The customer's microwave
dish is then pointed at the broadband provider's microwave dish,
located on a tower on a hill or building which can be quite
close or several miles away. The main requirement for fixed
wireless to work is "line of sight" – the space between the two
microwave dishes needs to be unobstructed.
Advantages
– Fixed wireless has many advantages over terrestrial or wired
broadband Internet access.
1. Price
– Bit for bit, fixed wireless used to command a premium because
the only businesses that ever ordered it were those businesses
that couldn't get DSL or cable Internet. Today, fixed wireless
usually cost just two-thirds of what an equivalent wired
connection would cost. As bandwidth requirements climb above the
single T1 capacity of 1.5 megabits fixed wireless becomes very
attractive. Need 3 or more megs of broadband Internet access?
Get a fixed wireless quote first and compare all other quotes to
it.
2. Quick
Installation – Because most wired Internet T1s
are delivered over the "last mile" by the local phone company,
the normal installation interval is six weeks. Because fixed
wireless providers bypass the phone company's "local loop" and
access the customer directly via microwave, installation
intervals can be cut to just one week.
3. Quick
Scalability – Unlike wired broadband
connections, fixed wireless connections can be scaled up almost
instantly with a phone call. Need to double or triple your
bandwidth? No problem. Try that with a wired Internet T1!
4. Affordable
Redundancy – As more businesses demand two
separate broadband Internet connections to ensure connectivity
if one goes down, fixed wireless providers are all but giving
away the store by throwing in a wired Internet connection at
near wholesale pricing to their wireless customers. Many
businesses find they can get both a 6.0 Mbps fixed wireless
Internet connection and a 1.5 Mbps wired Internet connection
through a fixed wireless provider for the same price as many
wired providers can provide just a single wired 6.0 Mbps
circuit.
5. No
"Satellite-like" Latency – Fixed wireless
Internet access is not the same as satellite Internet access.
Satellite Internet, widely advertised under the brand "DirecPC"
by Hughes, beams the customer's signal to a satellite orbiting
the Earth 24,000 miles in space. When a web page is taking an extra
50,000 mile round trip through outer space to get to your computer screen there's
going to be a bit of latency (count one Mississippi, two
Mississippi, three …) before the web page populates on the
screen. Because fixed wireless only beams the signal a couple
miles at most, latency is a non-issue when compared to satellite
or wired Internet access.
Disadvantages
– Only a few and
they're rarely deal breakers.
1. Geographically
Restricted – Fixed wireless service providers
aren't everywhere because of the capital expenses required of
the service provider to initiate service in a market. Fixed
wireless is either available in your area or it's not.
2.
Line of Sight
Sensitive – Even though you may be in a fixed
wireless service provider's footprint (they have a microwave on
the mountain next to your city) that doesn't guarantee line of
sight to your building if there's a tall tree or a tall building
between your rooftop and the provider's microwave tower.
3. Rooftop
& Permission Issues – Most business buildings
were built to accommodate a phone room in the basement that
feeds phone and data wire to all the offices. The same can not
be said for most business rooftops. Fixed wireless providers
know how to get the Internet from the roof to you server room
but you'll likely need to prove you have the building owner's
permission before they install the microwave dish on the roof.
Price
Wars
– The only way for your business customers to take advantage of
the price war developing between fixed & wired broadband
Internet providers is to make sure one or more fixed wireless
providers bid for your businesses broadband Internet and data
service the next time you call for quotes. Not only will you be
pleased with the price but you'll also be pleased with the
terms. One particularly aggressive fixed Internet provider is
providing an early termination fee that is only $500 total. The
deals are out there – but only offered to those businesses and
agents that ask.
Use a
"Quote Cop"
– Nothing can be more exasperating for a business owner
or telecom agents than trying to get multiple providers to give
written quotes for a service they know will be shopped out. They
either won't provide the detail you need or will purposely
underbid a core functionality and then pile on the extras once
the agreement is signed and the drop-dead order date is passed.
To bypass this quoting challenge many agents and businesses
simply use a telecom & data broker/consultant as their "quote
cop" to make sure only apples are compared to apples and that
everything that is needed for a service to work has been quoted.
ATELbroker.com
– ATEL acts as a broker to both business end-users and telecom
agents/consultants. Whether you're trying to get the best for
your business or the best for your clients give ATEL a call.
ATEL vets all the solution and service providers they broker.
When your carrier quote comes through ATEL you can rest assured
that the service or solution will be priced correctly and then
provisioned on time.
Dan
Baldwin is founder of
TelecomAssociation and director of sales at
ATEL Communications Inc. Founded in 1985, ATEL is the
largest NEC telephone equipment dealer in Southern California.
Baldwin works with ATEL's carrier services division that acts as
an in-house telecom master agency to sell network services
(including SIP trunks and other specialized IP services) to
ATEL's embedded base of 2,000 phone equipment customers. For
more information about ATEL's carrier services division please
visit
www.ATELcc.com
.
TelecomAssociation is a membership organization founded in 1995
that serves the information & communication needs of its 2,500
members who distribute telecom and related services to
businesses.
Got an
experience that complements this blog posting? E-mail printable
submissions to
Dan@ATELcc.com
.
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