Organisation for Economic Co-operation and Development DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY COMMITTEE FOR INFORMATION, COMPUTER AND COMMUNICATIONS POLICY Working Party on Telecommunication and Information Services Policies
THE IMPLICATIONS OF WiMAX FOR COMPETITION AND REGULATION http://www.oecd.org/dataoecd/32/7/36218739.pdf KEY FINDINGS A set of emerging wireless technologies is posed to greatly increase the range of high-speed wireless broadband. The technologies behind WiMAX should allow for wireless data speeds of up to 40 Mbit/s over a distance of 10 kilometres using relatively inexpensive equipment. These same technologies could also offer faster data transfers to mobile devices than is possible over current third-generation mobile networks under certain conditions. WiMAX-certified equipment should become available in late 2005 and should significantly increase the speed and reach of wireless data networks. The development and rollout of WiMAX introduces several regulatory and policy issues highlighted in this paper. The paper begins with a brief overview of the technologies behind WiMAX and its market positioning relative to broadband and 3G mobile networks. Next, the paper examines the potentially significant policy and regulatory issues for governments and regulators. Finally, the appendix presents country experiences and details the status of WiMAX across the OECD. The key findings of the paper include: 1. The success of WiMAX partially will depend on the availability of spectrum in OECD markets. Initial equipment will work in one of three main frequency ranges, 2.5, 3.5 and 5 GHz. Existing allocations of spectrum should be examined to see where space could be available for new broadband wireless technologies. Spectrum allocations should be technologically neutral. 2. The success of WiMAX could be hindered by mobility restrictions applied to certain spectrum bands. While the relationship between 3G, WLAN and WiMAX is likely complementary, competition and crossover among the technologies will be greatest when connectivity is not limited to pedestrian speeds. 3. Port blocking and traffic structuring on new WiMAX networks could harm stand-alone voice and video operators who might compete with services provided by the WiMAX operator. The role (if any) of the regulator is not yet clear but will likely become important if anti-competitive complaints arise. 4. WiMAX equipment could play a key role in providing long-range fixed-wireless connectivity in rural and remote areas as well as mobile connectivity over shorter distances. 5. Regulators should ensure that WiMAX operators can interconnect to both Internet exchanges and the PSTN subject to the national laws and regulations governing interconnection to public telecommunications networks. Interconnection should be available on the same terms offered to existing operators. 6. WiMAX equipment could raise privacy and security concerns by enabling wireless surveillance over long distances without consent. Other safety concerns include the use of streaming video content in vehicles that could distract drivers and the safe use of radio transmitting devices near children. 7. Long-range WiMAX may expand the reach of current broadband networks to remote areas and decrease the need for wire-line subsidies. Regulators may need to re-examine how universal service funds are allocated and what role wireless broadband technologies will play. WiMAX may prove to be a disruptive technology for the telecommunication sector but careful policy can ensure that the disruption creates the maximum benefit possible in the market. --~--~---------~--~----~------------~-------~--~----~ TELECOM-CITIES Current searchable archives (Feb. 1, 2006 to present) at http://www.mail-archive.com/[email protected]/ Old searchble archives at http://www.mail-archive.com/[email protected]/ -~----------~----~----~----~------~----~------~--~---
