WiMAX2 the Streamlined Path to 4G Whitepaper

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WHITE PAPER WiMAX 2: The Streamlined Path to 4G Why current and greenfield WiMAX operators have an unprecedented opportunity to grow subscribers and revenues now while preparing for a c ost-ef ficient migration to 4G

Transcript of WiMAX2 the Streamlined Path to 4G Whitepaper

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WHITE PAPER

WiMAX 2: The Streamlined Path to 4GWhy current and greenfield WiMAX operators have an

unprecedented opportunity to grow subscribers and revenues now

while preparing for a cost-efficient migration to 4G

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2 WHITE PAPER: WiMAX 2: THE STREAMLINED PATH TO 4G

Bandwidth-Demanding Applications

What are the data applications driving mobile

demand? They certainly include e-mail, texting,

Twittering and Facebooking. But they are increasingl

including more bandwidth-intensive applications

like photo sharing, online gaming and perhaps most

important of all, video. The rate at which end users

are consuming video – like YouTube, Hulu, sports

clips, TV shows and even movies – on their mobile

devices is startling.

“We rmly believe that mobile broadband

data is becoming the largest opportunity …

[for] mobile operators. Mobile data servicesare contributing an increasing portion of

carrier revenue … as (they) move from low-

bandwidth-intensive messaging applications to

bandwidth-hogging multimedia applications.”

Wedbush Securities quoted on Barron’s website,

March 22, 2010 

According to The Nielson Company, more than 15

million Americans watched video on their mobile

devices in the second quarter of 2009. That’s a 70

percent year-over-year increase. Similar growth is

being reported around the world, and the trend is

projected to continue at the same or even faster

rates. “The Internet has taught us that video is goingto be one of the prime mobile applications going

forward,” says Bruce Brda, senior vice president and

general manager of Motorola’s Wireless Networks

Business. The problem for many operators is that the

popularity of video and other bandwidth-demanding

applications is causing major capacity issues. What

technology is here to save the day? WiMAX.

Global demand for mobile data

services isn’t merely growing.

It’s exploding.

Nearly everyone who uses a mobile

phone or device anywhere in the

world is demanding faster access to

more data. More specifically, they’re

demanding that all the applications

they love on their tethered computers

be available on their mobile devices.

From an operator’s perspective, that

demands bandwidth.

Today, this exploding need for mobile

bandwidth is being met by WiMAX.

Tomorrow’s even greater demands

will be met by WiMAX 2.

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WiMAX is Booming

When mobile users can’t get video and other

applications they want, they tend to get frustrated and

impatient. And they’re tired of being told that in just

a few years new technology will be available to meet

their bandwidth and application needs. A few years ?

They want their mobile applications now . That urgency

is one of the biggest reasons for the impressive

growth of mobile 802.16e WiMAX technology.

WiMAX is available today. It is currently in use in

more than 500 high-profile networks in the United

States and other countries, and is proving to be

highly successful. Industry analysts note that WiMAX

experienced 75 percent to 80 percent subscriber

growth in 2009. A good example is Clearwire, which

added 87,000 subscribers in the fourth quarter of

2009 alone. And WiMAX isn’t only being used in

consumer applications; it is also powering enterprise

systems, institutional networks such as education and

healthcare, government solutions that serve remote

and underserved populations, and machine-to-machine

connectivity for Smart Grid and other networks.

“The wireless industry is convinced that the

growing volume of data [that] consumers

are eating up is a bad thing. But for us,

our [WiMAX] spectrum position gives us

tremendous capacity and the ability to meet

the explosive demand for mobile broadband.”

- Mike Sievert, Chief Commercial Officer, Clearwire 

Profits in the Hand

The bottom line is that there is money to be made

right now. WiMAX operators and owners of WiMAX

spectrum are in the ideal position to start generating

revenues today while other operators are waiting for

other standards to become generally available in the

next year or two. The proof is in the marketplace.

Many operators with WiMAX networks have become

so successful they already have a need for added

capacity. The good news is they can expand their

WiMAX systems right away to quickly provide more

bandwidth and gain more subscribers. Greenfield

operators that own WiMAX spectrum can also profit

from rising demand for bandwidth by deploying now

rather than later. WiMAX deployment is simple, quick

and affordable, and significant revenue streams and

fast ROI are waiting.

The Evolution of WiMAX

Most operators would agree that today’s revenues

and profits are as important – if not more important

– than tomorrow’s. But that doesn’t mean tomorrow

should be ignored. Today’s choices shouldn’t preclud

operators from reaping future profits as technology

continues to evolve. Although current 802.16e

WiMAX technologies are proving exceptionally

successful in bringing high-bandwidth mobile serviceto even the most demanding customers, is WiMAX

a technology of the future as well as of the present?

The answer is an enthusiastic yes.

All operators want to make sure they won’t be left

behind as mobile standards evolve. The future of

WiMAX is assured by WiMAX 2, which is based

on IEEE standard 802.16m, the powerful next

generation technology that positions WiMAX

operators for long-term growth.

The Power of 802.16m

WiMAX, of course, doesn’t exist in a vacuum. It

is not the only good technology choice for mobileoperators. But WiMAX offers a number of strong

competitive advantages. For one, WiMAX is

established technology with a fast-growing custome

base and a track record of reliability, performance an

customer satisfaction. In addition, next generation

WiMAX 2 solutions are two to three years away, as

opposed to other technologies whose evolution to

4G is four to five years away. What’s more, operators

can start the migration path to 802.16m right now,

rather than years from now.

WiMAX 2 Benefits

Industry analysts predict the demand for mobile

data services will continue its skyrocketing growth

over the next several years, with more subscribers

consuming more mobile data on more mobile

devices. The new WiMAX 2 standard will provide

operators with the benefits to take maximum

advantage of this growth.

Increased Performance. Current and new WiMAX

networks can map a step-by-step path to 802.16m

that will increase performance significantly. By 2011,

even before WiMAX 2 is fully available, operators

will be able to take advantage of a 10-to-20 percent

increase in spectrum efficiency. Ultimately, when

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802.16m is fully available, spectrum efficiency will

increase by 50 percent, leading to significant gains

in capacity and a 200 to 300 percent increase in

performance. WiMAX operators can expect to

see peak throughputs beyond 100 Mbps – up

to a hundred times faster than 3G – to provide

exceptional performance for bandwidth-hungry

mobile data applications. In addition, the WiMAX 2

standard can process requests in a few milliseconds,

enabling reduced latency and an advanced scheduler

technology for optimized prioritization of data services.

“[WiMAX 2] performance gains will

enable WiMAX operators to keep up

with the explosion in demand for rich,

multimedia mobile applications and devices

which increasingly require high speed,

on-the-go connectivity.”

Taiwan’s Industrial Technology Research Institute (ITRI) 

“300 Mbps WiMAX Standard to be ready

in 2010”

dnaindia.com

Application Enhancement: WiMAX 2 will also

provide mobile data users with significantly enhanced

application performance. Handovers will be optimized

with improved reliability and reduced interruption

time. Security will be heightened through enhanced

encryption capabilities and greater efficiencies in

integrating key frame management. The standard

also prepares for the growth of femtocell solutions by

being femto-aware from the start, and by mitigating

interference between macrocells and femtocells. In

addition, in support of the growing importance of

VoIP, WiMAX 802.16m will deliver 50 percent more

VoIP capacity than 802.16e systems.

Investment Protection: As WiMAX operators evolve

their networks to 802.16m technology, they can be

assured of a fully backwards compatible technology

transition, protecting their previous and current

investments. There’s no need to replace 802.16e

devices, and they can use a simple network upgrade

for 802.16e base stations.

Robust Ecosystem: All along the path from 802.16e

to 802.16m, WiMAX operators have the support of

a robust WiMAX ecosystem supported by industry

organizations like the WiMAX Forum and WiMAX 2

Collaborative Initiative, as well as a strong global

WiMAX community. The 802.16m standard is

designed to meet IMT-Advanced requirements (see

sidebar), and to meet them up to three years before

competitive technologies.

“Leading WiMAX vendors … as well as

the Taiwanese research organization, ITRI,

have launched the WiMAX 2 Collaboration

Initiative (WCI). The group will work closely

with the WiMAX Forum to accelerate the

implementation of interoperable system

proles for WiMAX 2 equipment and devices

with the goal of improving the economics of

mobile broadband.”

WCI Press Release, April 12, 2010 

Peaceful Coexistence

The 800-pound gorilla in any discussion about

4G mobile standards is the de facto competition

between WiMAX and LTE (Long Term Evolution.)

Virtually every wireless operator is concerned about

a “tech war” in which one technology eventually

wins in the race to 4G. Everyone wonders which

one will it be. The answer, of course, isn’t so cut

and dried. “The real answer,” says Brda, “is two

technologies coexisting side-by-side and serving the

different needs of operators around the world.”

“Though there is a certain degree of

competition between the two technologies,

it has been misinterpreted as a heated battlewhere one technology is destined to succeed

as the other fails. The reality is that both

WiMAX and LTE will play major roles in the

future and have the potential to concurrently

benet the wireless world.”

Ari Zoldan, CEO, Quantum Networks, LLC 

Despite the increased chatter about LTE, WiMAX

operators can be certain of one thing. WiMAX is her

today; it’s strong and successful, and it’s going to be

a robust technology well into the future.

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A Business Decision

It’s important to remember that WiMAX and LTE

are not 4G. They do not meet the IMT-Advanced

standards that define minimum 4G performance. On

the other hand, 802.16m WiMAX will meet IMT-

Advanced standards, making it the first 4G solution

to come to market, expected to be in 2012. (LTE

Advanced, the 4G incarnation of LTE, isn’t projected

to be available until 2013 or 2014.) This disparityin time-to-market essentially makes an operator ’s

decision less a technology choice and more a

business decision.

Today, WiMAX operators and spectrum holders

have an excellent opportunity to choose action over

inaction … and profitability and customer satisfaction

over the waiting game. Not surprisingly, a growing

number of WiMAX operators and license holders

are choosing that opportunity. By expanding and

deploying now, they can immediately begin to make

money and retain and win customers. At the same

time, they are positioning themselves for 4G with a

clear and cost-efficient migration path to WiMAX 2.After all, this is business.

WiMAX Leadership

Leveraging our 80-year history of wireless innovation

and leadership, Motorola is one of the world’s

leading suppliers of WiMAX technology. As a charter

member of the WiMAX Forum and a leader in the

WiMAX 2 Collaboration Initiative (WCI) and other

industry organizations, we are also one of the

world’s leading supporters of WiMAX technology and

WiMAX operators.

Technology, Knowledge, Experience

At Motorola, we offer the technology, the knowledge

and the experience to help WiMAX operators and

spectrum owners take immediate advantage of

the escalating demand for mobile broadband data

service and applications. If you’re considering

expanding your WiMAX network, deploying a new

network or planning a network that combines

802.16e with 802.16m, Motorola can empoweryou to meet today’s needs today, and to meet

tomorrow’s needs before the competition.

Step-by-Step Migration

We’ll put you on a well-defined, step-by-step

WiMAX 2 4G migration path that will help protect

your investment while working with you on your

technology requirements, spectrum and capacity

planning and feature prioritization. Start by calling

Motorola today. You’ll find that we are the go-to

partner that enables you to leverage WiMAX to

provide all the high-speed mobile data connectivity

and performance your customers demand …

today and in the 4G tomorrow.

IMT 4G WiMAX STANDARDSInternational Mobile Telecommunications 2000, or IMT-2000, is the term for a

family of common global standards for mobile telecommunications that meet

specifications of the International Telecommunications Union.

Now in effect, IMT-2000 specifies standards for 3G networks. A new set

of more stringent standards for 4G systems, known as IMT- Advanced, has

recently been approved, and specifies minimum throughputs of 1 Gbps for

stationary reception and 100 Mbps for mobile reception. WiMAX 2, or 802.16m

networks, will bring true 4G mobile data service to WiMAX operators and their

subscribers by mid-to-late 2012, a year or more before LTE-Advanced and other

4G technologies.

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