BellSouth Expands Broadband Wireless Plans
Ramps Up Rollouts, Sets WiMAX Trial

By Karen Brown
MultiChannel News

7/10/2006

http://www.multichannel.com/article/CA6350821.html


In this story:
UP AND RUNNING
DEVICES LAGGING
RURAL OPPORTUNITIES

After delays due to Hurricane Katrina and the availability of needed 
technology, BellSouth now is looking to expand its deployment of broadband 
wireless services and launch a trial of WiMAX technology, which could 
double Internet access speeds.

The Atlanta-based Bell operator recently announced its BellSouth Wireless 
Broadband Service will expand in the third quarter to parts of Melbourne, 
Fla.; Chattanooga, Tenn.; Greenville, Miss.; Charleston, S.C.; and Albany, Ga.


UP AND RUNNING

The service, based on a pre-WiMAX technology, is already up and running in 
Athens, Ga.; Palatka and DeLand, Fla.; New Orleans; and Gulfport, Miss., 
offering residential and business users broadband Internet connections as 
high as 1.5 Megabits per second downstream and at upstream rates between 
128 and 284 Kilobits per second. If BellSouth launches services in future 
markets based on standard WiMAX, that data rate could rise to 3 Mbps 
downstream, to the home or office.

In any case, the goal is for the wireless Internet connections to extend 
rather than replace wired digital subscriber line connections, according to 
Mel Levine, BellSouth’s director of product development.

“Even in metro areas, we have spaces where we don’t have DSL coverage. And 
then when we get out to rural areas where we have DSL, but it goes so far 
out and the economics don’t carry it farther,” he said. “So what you are 
seeing is our plan using wireless broadband to push broadband farther out.”

Technology-wise, BellSouth Wireless Broadband Service uses 2.3 Gigahertz 
Wireless Communications Services spectrum the telco owns in all of its 
markets except for Athens, Ga. In that market, BellSouth is using 2.5 GHz 
Broadband Radio Services spectrum.

Navini Networks has supplied non-standards based, pre-WiMAX radio 
technology. Base stations attached to local radio towers supply the 
wireless connection, which feeds a line-of-sight modem at the subscriber’s 
home or office.

Levine noted that BellSouth has been evaluating the technology since 
January 2002 and made its decision to deploy the technology a year and a 
half ago.

But after deploying it in Athens in 2005 and expanding it to include 
Palatka and DeLand, Fla., “unfortunately, a lady named Katrina came 
marching through our territory, and that sort of disrupted our plans,” 
Levine said. “Once the hurricane hit, we switched all of our attention to 
the Gulf Coast and we went ahead and deployed all of our equipment into New 
Orleans for disaster recovery and in Gulfport and Biloxi.”


DEVICES LAGGING

In addition to the hurricane, the larger problem has been in developing the 
technology and devices to support it. WiMAX is an up-and-coming technology, 
but the latest version — 802.16e — has only recently been set as a 
standard. Vendors have not as yet developed products such as base stations 
and modems that will create a commercial WiMAX network. That’s the reason 
BellSouth is using a pre-WiMAX technology, Levine noted.

There also is a stumbling block created by the spectrum, which is split 
into two bands. In between those bands is a chunk of spectrum satellite 
radio providers, including XM Satellite Radio and Sirius Satellite Radio, 
are using to boost their satellite signals, and that is generating 
interference problems.

Since the Federal Communications Commission has not weighed in to define 
acceptable levels of interference between the bands, vendors aren’t sure 
how to configure their products. That has “thrown a blanket over 
development of platforms,” Levine said.

Nevertheless, BellSouth has announced plans to start lab testing WiMAX gear 
from Alcatel starting in the third quarter. The trial will evaluate 
Alcatel’s Evolium product line based on the 802.16e WiMAX standard, which 
allows for broadband mobile applications akin to a cellular phone service.

Levine is quick to note the goal there is not to create a mobile 
broadband-wireless offering — especially given BellSouth already has such a 
service, through its ownership stake in Cingular Wireless. Instead, 
BellSouth is hoping that a WiMAX standards-based platform draws in multiple 
vendors and therefore lowers cost to BellSouth.

But while the lab trial is going forward, Levine doesn’t expect to see 
equipment using the new mobile WiMAX standard coming into the market until 
late 2007 or even into 2008.

Indeed, despite the recent hype surrounding the technology, WiMAX’s market 
prospects may in reality be more limited, according to Ken Dulaney, vice 
president of mobile computing at analyst firm Gartner Research.


RURAL OPPORTUNITIES

For starters, it is as yet a data-only technology, and most estimates put 
the maximum throughput for WiMAX at about 3 Mbps downstream — so it won’t 
compete well in areas where DSL and cable modem services are offered at 
twice that speed or more, Dulaney noted.

As such, BellSouth’s strategy to use its pre-WiMAX service in areas where 
its DSL service won’t reach could work, he said.

“That makes sense, and then it’s a profitability issue,” Dulaney noted of 
BellSouth’s strategy. “Rural farming, unless the government passes a law 
like it did in the early days with telephones to subsidize it, is not going 
to be an area that they are going to target. It’s going to be well-heeled 
suburbs.”


================================
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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