Fixed Wireless Market Research

Senza Fili Consulting:
Expanding the potential of wireless broadband services in the US using the 3.65GHz band

This research report from Senza Fili Consulting presents a solid overview of the new spectrum available to fixed wireless broadband providers.

by Monica Paolini Senza Fili Consulting [November 24, 2008]
This is the executive summary of this research paper. The full version [.pdf] is available from Senza Fili Consulting on their website.

For wireless broadband operators, the availability of affordable, clean spectrum in which they can deploy the most advanced technologies is critical to their success.

Until recently, operators in the US have faced spectrum restrictions that have limited the market growth of wireless broadband services. License-exempt bands in the 2.4GHz and 5.8GHz frequencies have been successfully used by many operators, but interference has increasingly become an issue, especially for Point to Multipoint (PMP) networks. In these bands, operators face interference not only from other operators, but also from consumer devices (microwaves, phones, residential Wireless Local Area Network [WLAN] hardware, etc.) that make it difficult to manage interference successfully.

The other two bands that are available in many markets are 2.5GHz and 3.5GHz. The 2.5GHz band is available in the US, but it is largely controlled by large operators—mostly by Clearwire, Sprint, and AT&T. In most countries, wireless broadband operators have access to licensed spectrum in the 3.5-3.7GHz band—along with a large choice of commercial equipment, because this is the licensed band most widely used for fixed broadband services. In the US, wireless operators were not able to use this band until the end of 2007.

The Federal Communications Commission (FCC) recognized the spectrum limitations that US operators faced, and introduced an innovative licensing scheme in the 3.65GHz band. It is designed to unlock the market potential for wireless services and widen the availability of broadband to underserved areas in the country. The newly available spectrum is subject to light licensing: licenses are not exclusive, and they are easy and inexpensive to obtain. In many ways, the 3.65GHz band promises to combine most of the advantages of unlicensed bands with substantially lower, manageable levels of interference.

While the light-licensing scheme used for the 3.65GHz band is still largely untested because of its recent introduction, the results so far are very encouraging. Commercial equipment based on Worldwide Interoperability for Microwave Access (WiMAX) with the necessary FCC approval is now available from multiple vendors. In some cases where vendors have invested in Interoperability Testing (IOT), operators can use interoperable gear from different vendors within the same network. As of September 2008, 420 operators nationwide have applied for or received a license, and some of them have launched commercial services using WiMAX-based equipment.

Wireless operators have welcomed the availability of the spectrum in the 3.65GHz band because it allows them to better serve their existing and prospective clients, to extend coverage, or to start new deployments in a cost-effective way. This is possible because, in addition to the low levels of interference, the 3.65GHz band has good propagation characteristics that enable Non-Line-Of-Sight (NLOS) operations. This results in lower deployment costs and better coverage.

The additional benefit of the 3.65GHz band is that it brings wireless operators access to WiMAX-based technology, which before now was available only for licensed spectrum. WiMAX supports improved spectral efficiency, lower per-bit costs, and Quality of Service (QoS) for carrier-grade voice services and enterprise Service Level Agreements (SLAs). As WiMAX equipment is deployed worldwide, operators can expect to reap the advantages of economies of scale—lower equipment prices and wider choice of vendors and products—even though equipment for the US market has to be slightly modified to meet the domestic regulatory requirements.

— End