FCC Move Could Boost WiMAX
The U.S. Federal Communications Commission's plan to deregulate DSL is
expected to hasten wireless broadband adoption.
Red Herring Magazine
August 4, 2005
http://www.redherring.com/Article.aspx?a=13040&hed=FCC+Move+Could+Boost+WiMAX
The U.S. Federal Communications Commission's plan to deregulate DSL could
boost the prospects for WiMAX, the slowly evolving standard for wireless
broadband, by forcing Congress to allocate enough frequencies to support
the technology.
"The FCC ruling could make wireless broadband a bigger and much more
crucial battleground than ever," said Joe Nordgaard, managing director of
Spectral Advantage, a wireless strategic consulting firm. "Congress has
been lobbied for months now to free more frequencies for wireless broadband
to the home. If competition is reduced on the DSL path, wireless access
will gain significantly from a competitive standpoint."
WiMAX promises to join cable and DSL as the third broadband connection to
the American home. But technical and political considerations have
conspired to slow the progress of the wireless technology.
After years on the drawing board, WiMAX has only recently begun to show
signs of real life. A number of vendors and carriers have announced
products, testing, or support for the standard in the last month, including
Intel, Nokia, AT&T, BellSouth, Sprint, and Motorola.
On Monday, Vonage, the VoIP market leader, announced an alliance with
TowerStream, a carrier that is implementing an early version of WiMAX
technology. The deal will allow Vonage to bypass equipment owned by its
cable and telecommunications competitors and give it a stronger foothold
among smaller businesses (see Vonage Signs WiMAX Deal).
Giving full control of DSL communications to the telecommunications
carriers could focus more attention on WiMAX. In addition, issues relating
to the availability of spectrum could find themselves on the political
front burner.
"The outcome of the FCC's decision could strengthen calls for the DTV
[digital television] spectrum give-back to be auctioned in a manner that
stimulates additional broadband competition," said Mr. Nordgaard. "As such,
this would argue for the spectrum to be sold in larger blocks with rules
designed to stimulate competition into the home."
The transition from analog to digital television has allowed the federal
government to set aside spectrum that citizens could use for affordable
wireless broadband. The issue of how this spectrum would be used is still
being debated in Washington.
Many, including WiMAX proponents, believe that a sizable chunk should be
set aside for wireless broadband. But not everyone is thrilled about the
way wireless broadband is emerging.
"Wireless broadband will be provided by the same people who own DSL," said
Kenneth DeGraff, a policy analyst with Consumers Union. "It's Verizon,
BellSouth, and SBC. I don't see these companies using their wireless arms
to attempt to cannibalize their wireline businesses. The Sprint/Nextel
merger is just one small way for us to chip away at the great wall of
monopoly, but I don't see broadband wireless as the answer."
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923 Fax: 713-743-3927
antunes at uh dot edu
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