WiMax and Changing Landscape of Internet & Telecom (Update I)

April 20, 2005
(CoolAvenues News Wire)

Launch of WiMax chip by Intel seems to have created a frenzy in the new economy world, since experts are seeing this as another step forward where telecom & Internet companies will collaborate and compete with each other at the same time.

WiMAX, the abbreviated name for Worldwide Interoperability for Microwave Access, is a standards-based wireless technology, which will provide high-speed, last-mile broadband access to homes and businesses and for mobile wireless networks. The aim of this chip deployment is to enable delivery of broadband Internet access to remote areas, which are not served by either DSL or cable.

WiMax network is going to be launched in 11 countries worldwide including India where Sify is going to partner with Intel in launching WiMax Ecosystem in India. The other carriers which are going to partner with Intel in launching WiMax Ecosystem are AT&T (US), Altitude Telecom (France), BT (UK), Brasil Telecom (Brazil), ETB (Columbia), Iberbanda (Spain), Millicom (Argentina), Qwest (US), Speakeasy (US), Telkom (South Africa), Telmex (Mexico), TowerStream (US), UHT (Ukraine).

However, the most interesting aspect of WiMax will be its next level of development which is almost 2 years away but will enable launch of mobile WiMax by roaming between cells. This will enable very high usage of Internet and also broader adoption of Internet telephony, thus impacting the revenue line of telecom operators. For example, Skype - a most successful P2P Internet telephony operator - has witnessed more than 100 million downloads since its launch last year and has served more than 7 billion minutes on its network. As per eValueServe, a leading telecom analyst, telecom operators will witness a decline of 2.6% in total revenue by year 2006 and that is without taking into account the impact of WiMax.

Hence, with mobile WiMax network this impact is going to be more harsh and will create new opportunities while at the same time threaten existing business models, which is probably the eternal truth of the world of technology.

Concluded.

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