Forecasts: Fixed Broadband Subscriber Growth to Remain Robust, Growing 7% Annually
High speed Internet access and new technologies are progressively dominating industrialized economies. An increasing number of operators are beginning to devote themselves to the ‘triple-play’ option, offering high value packages comprising voice, video, and data, with the hope of increasing their subscriber values through higher penetration rates and revenues.
In this latest update to ABI Research’s new broadband subscribers’ market data, overall broadband subscriber growth profiles will continue to grow 7% annually over the next six years to reach 520 million subscribers globally in 2014.
One man’s meat is another man’s poison. ABI Research industry analyst Serene Fong observes that, “While DSL carriers have made substantial gains in the last few years, mature broadband markets have started witnessing near-saturation in their broadband penetration.
Technologically advanced nations such as Denmark, South Korea and Japan are already experiencing declines in DSL take rates as more users are favoring the speedier fiber option.” Moreover, rapidly declining prices as a result of stiff competition also catalyze growth of faster bandwidth solutions.
More positively, Fong also trusts that, “Fixed line DSL technology will continue to remain the premier broadband platform, driving uptake globally especially in developing nations. This is because operators are able to piggyback on existing telecommunications infrastructure to keep their costs stable and price it more affordably to the widest subscriber pool”. [ABI Research]
Southwest Airlines to Test Satellite Broadband Service
By Lynnette Luna
Southwest Airlines said it will commence a wireless Internet trial using Row 44 Ku band service by the end of the year. The trial will begin on one Boeing 737-700 followed by three other Boeing 737s in the first quarter.
There is a split between airlines using Row 44's service and Aircell's Gogo service. Alaska Airlines has chosen to use satellite service from Row 44, which offers an in-flight broadband service based on Hughes' satellite network system. It did so because the Gogo service doesn't work going to Hawaii, Alaska or Mexico. Alaska has said it plans to roll out Row 44's service across its fleet beginning this year.
In August, American Airlines launched Aircell's Gogo mobile broadband service on three coast-to-coast flights, making the service available for $12.95 per flight on its 15 Boeing 767-200 aircraft. The service is still considered to be in test mode, however.
Delta Airlines took the plunge as the first U.S. airline to offer in-flight WiFi access on a substantial number of aircraft. The company said it will soon WiFi-enable some 330 domestic aircraft, offering Aircell's Gogo service for $9.95 on flights of three hours or less and $12.95 on flights of more than three hours. [FierceBroadbandWireless]
Enterprises Will Drive Wireless Broadband Growth
By Peggy Albright
Senza Fili Consulting forecasts enterprise markets will have a welcome and significant impact on wireless broadband growth. The research firm said enterprises are finally ready to adopt vertical applications that require wireless data connectivity, such as machine-to-machine communications, in-vehicle telematics and mobile workforce products.
A new report from the research firm says that by 2014, vertical market applications will use more than 154 million connections on 3G, WiMAX or LTE networks, generating more than $43 billion in service revenues, and that vertical services will reach 24 percent of WiMAX subscriptions and 14 percent of LTE subscriptions. While the enterprise market is a potentially lucrative one, however, it is challenging to serve, and operators will need to prepare well to give these customers the attention and performance they will demand, the firm cautions.
Mobile Broadband Threatening Fixed Line?
One in eight says dongle over landline…
By Natasha Lomas
Mobile broadband is encroaching on the business of fixed line ISPs, market research company YouGov is claiming. But not everyone is happy with the dongle experience.
Results from YouGov's DongleTrack report show while the majority (64 per cent) of mobile broadband users are buying dongles or datacards as an accessory to fixed line fat pipes, a significant minority (12 per cent - or one in eight mobile broadband users) has either ditched their fixed line connection or opted to use 3G modems instead of having a landline put it.
Broadband from A to Z Click on the links below to find out more... The YouGov survey also found a lucky four per cent of mobile broadband users have datacards provided by their work.
A recent state of the digital nation Ofcom report found UK dongle sales nearly doubled between February and June this year, rising from 69,000 to 133,000 per month.
The regulator has also charted the rise of homes without landlines in the UK - as more people opt to rely on mobile phones for voice calls - and puts the figure at 12 per cent of homes.
But with the rise in popularity of mobile broadband gadgets, the landline is under attack on two fronts. Not least because UK households seeking to install or reconnect a landline can face a BT connection charge of almost £130.
Lack of access to a landline was cited as the reason for adopting a dongle or datacard by 13 per cent of respondents to the survey.
Read more - Silicon.com
Study: One Third of All Enterprises Deploying Pre-802.11n
By Lynnette Luna
A new study from BT North America found that nearly one third of all enterprises are deploying 802.11n WiFi technology, despite the fact that the standard isn't ratified yet. The consulting firm, which surveyed 226 U.S. organizations about their wireless installations, said the rate of adoption of 802.11n technology was unprecedented and indicated that the benefits of 802.11n were an urgent need for a significant number of enterprise sites.
The BT consultants said they see customers most often adopting the draft 11n infrastructure in brand-new construction, where it's matched with a high-capacity wired infrastructure. [FierceBroadbandWireless]
Higher Education Market Fertile Ground for 802.11n Wi-Fi
ABI Research has forecast that Wi-Fi will be available in 99% of North American universities in 2013. Much of that penetration will be in the form of 802.11n equipment: higher education is clearly the number one market for early adopters of 802.11n.
According to ABI Research vice president Stan Schatt, “ABI Research expects 802.11n uptake – which is today fairly small in the education market – to ramp up steeply to quite a high rate of penetration.”
There are several reasons for this. Many students now assume a campus Wi-Fi network as a given, and many of their shiny new laptops will be “n”-compatible. Universities have great bandwidth demands, as lecture halls may need to serve a large number of users with multimedia content at any given time. 802.11n’s greater speed and capacity can address that need.
Moreover, says Schatt, “Universities are breaking new ground by using video over Wi-Fi in a number innovative ways. This is driving the adoption of high speed 802.11n. Students in the near future (at least the diligent ones) will be just as likely to watch their favorite professor’s lectures on their laptops as they will be to view ‘America’s Next Top Model’.”
In an interesting twist, educational institutions with limited funds are jumping to 802.11n to “future-proof” their networks, rather than purchasing an 802.11g Wi-Fi network now and coming back in a year or two seeking funds for an upgrade to 802.11n.
However, a few barriers to adoption do still exist. Some institutions are concerned about the impact of 802.11n’s increased bandwidth on the wired side of their infrastructure. Some have limited budgets, and some – particularly those with less emphasis on research – may be conservatively inclined to wait for confirmation of the 802.11n standard before taking the plunge. [ABI Research]
Home Network Technologies Will Coexist, Not Compete
Consumer electronics products no longer exist in a vacuum: increasingly they are linked to each other via a number of short-range radio technologies. CE vendors, faced with a series of overlapping use-cases, network areas, standards, and technologies, need to understand the applications best suited to each, and how they relate to each other.
Fortunately, short-range networking technologies are settling into more or less clearly defined roles, and will by and large coexist and complement each other rather than competing. “Technologies such as Bluetooth, Wi-Fi, UWB, 60 GHz, and ZigBee will not compete within the home,” says ABI Research senior analyst Douglas McEuen, “but will be used in coordination, overlapping and coexisting for full wireless network coverage.”
“Each of these technologies has a sweet spot or specialty,” he continues. “Bluetooth will be the driving technology in the PAN (personal area network) and may see some success in remote controls, especially for gaming. Wi-Fi will be the key technology for wireless LAN (local area network). UWB and 60 GHz respectively will be specialized for home office peripherals, and for wireless HDMI (uncompressed video sent from a set-top box to a high-definition TV). ZigBee stands apart, as a home automation technology.”
There are a few competitive counter-trends worth noting. Recently, Intel and OZMO Devices announced a program that uses standard Wi-Fi protocols to handle PAN tasks such as syncing notebooks with various PC peripherals and wireless consumer electronics. The RF4CE (Radio Frequency for Consumer Electronics) industry consortium has been formed recently to develop a new protocol for radio frequency remote controls that would compete with Bluetooth to replace IR remote controls for audiovisual equipment. However, these are the exceptions that prove the rule. [ABI Research]
Gartner: U.S. Broadband Penetration to be 77% by 2012
By Dan O'Shea
Maybe Verizon Communications President Denny Strigl was right when he suggested during a keynote speech at NXTcomm last month that the critics of U.S. broadband penetration should hush up. Market research firm Gartner reports that about 77% of U.S. households will have a broadband subscription 2012.
According to gartner's projections, that will put the U.S. in a tie for 5th place worldwide (with Japan) for broadband penetration. U.S. broadband penetration by household currently is somewhere not far past 50%, and Gartner says wireless broadband technologies will drive much of the coming growth.
Still, within the last year, we have seen many predictions for slowing broadband growth. AT&T last week reported broadband subsciber additions of just 46,000 for the second quarter, and industry observers are awaiting other telco and cable TV players' earnings reports to see if the trickle is happening industry-wide. [FierceTelecom]
CTIA Opposes FCC's Free Wireless Broadband Plan
By Lynnette Luna
The comment deadline for the FCC's controversial plan to auction nationwide spectrum in the AWS-3 band that would require the winner to offer free wireless broadband services was Friday, and not surprisingly, T-Mobile and CTIA are openly opposing the plan.
The commission is proposing to combine the 2155 to 2175 MHz band with the 2175 MHz to 2180 MHz band to create a 25-megahertz swath of spectrum that would support a nationwide license. The spectrum is referred to as advanced wireless services-3 and would require the licensee to dedicate 25 percent of its network capacity to free broadband service, install a network-based Internet filtering system to block pornography and allow open access to third-party devices and applications.
T-Mobile has already been vocal about its concerns over potential interference in the band since it is the largest licensee of AWS-1 spectrum. CTIA claims the FCC is not dealing in good faith with T-Mobile.
"How can the FCC expect investors and the carriers they fund to show up at future auctions and fully utilize their spectrum if they have no confidence that the FCC is an honest broker?" the CTIA said in a June 25 letter to the FCC. "Now the FCC is planning to pull the rug out from under those same licensees by developing new rules that will cause harmful interference to their customers."
Reply comments to the FCC are due Aug. 11. [FierceBroadbandWireless]
AT&T Navigator Goes International
By Jason Ankeny
AT&T Mobility announced the launch of AT&T Navigator Global Edition, expanding its GPS-based service to provide international navigation capabilities. AT&T Navigator Global Edition now offers location services spanning 20 countries, including most of Western Europe, North America and the Caribbean as well as the six Chinese cities that will host the 2008 Summer Olympics.
AT&T Navigator Global Edition promises many of the same features as the domestic AT&T Navigator service: Subscribers may access spoken or text-based turn-by-turn directions in languages including English, German, Italian and Spanish, and are offered automatic re-routing information if they miss a turn. The service also features a local business finder enabling search by category or specific retailer name.
According to AT&T, the Navigator business finder database now encompasses more than 19 million businesses and services across the U.S. and abroad, including ATMs, hotels, restaurants, gas stations and airports. [ABI Research]
Aircell Taps LTE for Next-gen Inflight Services
By Lynnette Luna
Following the likes of CDMA operator Verizon Wireless, which will deploy LTE as its 4G technology, in-flight communications provider Aircell said the future of its mobile broadband network will be based on LTE (Long Term Evolution) as well.
Today, the company's Gogo service uses CDMA 1xEV-DO Rev. A technology, which enables the company to offer its air-to-ground data service at a data rate of more than 12 Mbps peak to Gogo-equipped aircraft. By the end of 2009, further advances to EV-DO will enable Aircell to deliver a raw data rate of up to 22.7 Mbps to aircraft. And by the start of 2011, Aircell expects to deploy its 4G LTE network, which will enable a throughput of up to 300 Mbps to aircraft.
The company says LTE will enable in-flight services such as hi-definition and interactive television as well as multi-player gaming. Aircell said it also chose LTE as a way to future-proof its air-to-ground technology. Airlines will also benefit from LTE because the technology will allow them to enhance their operations by offering applications such as high-resolution weather to the cockpit, the company said.
The company's customers so far include Virgin America and American Airlines. [FierceBroadbandWireless]
Clearwire is The World's Largest Wireless Broadband Operator
By Lynnette Luna
According to Maravedis, Clearwire is the world's largest Broadband Wireless Access (BWA) provider in the world. The firm recently counted all of the global WiMAX and proprietary BWA subscribers and found that Clearwire's 443,000 subscribers account for nearly one quarter of all individual broadband wireless connections in the first quarter.
According to the report, some 1.988 million broadband wireless subscribers are in the world, with more than half using proprietary wireless broadband technology. Of the 602,000 customers on WiMAX gear, 509,000 have fixed 802.16d WiMAX service, while only 193,000 are using a real mobile WiMAX (IEEE 802.16e) network, and of those, the vast majority, 145,000, are on Korea Telecom's WiBro network, which obtained certification under the WiMAX Forum this year.
Clearwire is working to upgrade its proprietary gear to mobile WiMAX and plans to merge with Sprint's WiMAX assets later this year. [FierceBroadbandWireless]
Ericsson to Provide Mobile Broadband Modules for Toshiba Business Laptops
Ericsson (NASDAQ: ERIC) has become partner of choice for the integration of HSPA mobile broadband modules into Toshiba's business laptop range in Europe, the Middle East and Africa (EMEA). HSPA (High Speed Packet Access) is the world's most widely deployed mobile broadband technology, with 198 commercially deployed networks available in 86 countries worldwide[1]
As the use of wireless LAN (WLAN) technology becomes increasingly widespread, the demand for real mobile broadband access to the Internet and company networks anytime/anywhere has significantly increased. Market analysts[2] predict that laptops will remain the key mobile productivity tool for business and that HSPA technology will play a key role in this.
Through the partnership announced today, Toshiba and Ericsson will bring together extensive expertise in their respective fields. Thomas Teckentrup, General Manager Toshiba Computer Systems Division Europe, comments "Toshiba and Ericsson complement each other very well. While Toshiba has a strong position in the business laptop market, Ericsson has a lot of experience in the mobile broadband business. Through this partnership, we will create products that are greatly beneficial to our customers, assisting them in every aspect of their business lives."
"With the integration of our Mobile Broadband Module into Toshiba's business laptops we are supporting Toshiba's vision of offering real mobile broadband connectivity to business users" Mats Norin, Vice President Mobile Broadband Modules, Ericsson, says.
Users of Toshiba business laptops will soon benefit from Ericsson's latest wireless broadband technologies (HSPA) with modules allowing data rates of up to 7.2 Mbps in the downlink and up to 2.0 Mbps in the uplink[3]. The module also has a GPS (Global Positioning System) receiver, to be used together with positioning applications. Toshiba plans to release first laptops equipped with Ericsson's Mobile Broadband Modules in second half of 2008. The company has a long history of pioneering latest technologies: In 2006 Toshiba launched its first 3G embedded laptop.
[1] According to GSA as of June 2008
[2] "Adoption of HSPA and mobile broadband access in the enterprise market", Disruptive Analysis, October 2007
[3] Actual accessible data rates depend on network performance. [FierceWireless]
Aruba and Meru Top New 802.11n Vendor Matrix Ranking
Aruba Networks and Meru Networks have been ranked at the top of the latest Vendor Matrix released by ABI Research, essentially tied for first place as the leading 802.11n Wi-Fi equipment vendors.
Motorola claimed the second spot in the company’s new evaluation of worldwide vendors.
The Vendor Matrix is an analytical tool developed by ABI Research to provide a clear understanding of vendors’ positions in specific markets, measuring the dual parameters of Innovation and Implementation.
“Aruba earned high marks for its flexible architecture, adaptive radio management, and management tools,” says vice president and research director Stan Schatt. “Meru’s mature products scored well in value-add features, many being a direct result of its unique architecture. These two vendors have shown major strength in the early adopter verticals of higher education and healthcare. Motorola emerged as the winner in Innovation, showing an 802.11n product portfolio with myriad inventive features.”
Although Aruba, Meru and Motorola topped these rankings, several other companies are hot on their heels in particular respects. These include Cisco, which has done the best job of identifying key vertical market segments and then assembling partners in each key vertical; Trapeze, which edges out its competitors with respect to resilience and high availability; and Colubris, which offers the most compelling 802.11n value proposition when balancing features against the actual cost of the products.
For this particular matrix, under "innovation," ABI Research examined products’ video handling, resilience and scalability, as well as the companies’ antenna offerings, and the benefits of their system architectures.
Under "implementation," ABI Research scrutinized the following criteria: channels and early deployments, the products’ value proposition, their add-on features, the breadth of the product range, the firms’ migration strategy, and their planning and management tools. [ABI Research]
Microsoft: FCC's Tests Validate White Space
By Lynnette Luna
Despite the fact that its prototypes malfunctioned during lab tests at the FCC, Microsoft says the FCC has gathered enough valid data to show that devices can operate in the white space spectrum without causing interference.
"The commission has gotten more than enough valuable and valid data to show that you can use these devices to do spectrum sensing, that you can identify TV channels, and that you can identity them to the level that you're not causing interference," Microsoft's Ian Ferrell said during a technology conference in San Francisco called Supernova. Last week, the FCC completed lab tests of white-space devices submitted by several different companies.
Microsoft's own white-space prototypes malfunctioned--one due to a faulty channel scanner the other due to overheating. The National Association of Broadcasters (NAB), which is vehemently opposed to the use of white space because it fears interference problems with TV signals, has used that as ammunition to say that these devices cause interference. Ferrell insists FCC tests have shown interference isn't a problem.
For its part, the FCC says it will undergo another round of testing in the field within the next few weeks. Microsoft has withdrawn its faulty prototypes, but FCC engineers are still studying devices from Philips, Motorola, and Adaptrum, a Silicon Valley white-space startup. [FierceBroadbandWireless]
Wireless HDTV Technologies Battle for A Million Installations in 2012
We’ve got wireless phones, wireless Internet and wireless home networks. Next, coming to a living room or commercial facility near you, is wireless high-definition TV. However, the market is still in its “incubation” stage, with fewer than 100,000 devices expected to ship this year. According to a new study from ABI Research, optimistic forecasts point to 2012 as the earliest year for the milestone of one million wireless HDTV installations worldwide.
Meanwhile, a “battle of technologies” is being fought. There are three contending systems, loosely characterized as: 5 GHz, 60 GHz, and ultra wideband (UWB).
“5 GHz technology is better understood and more proven,” says principal analyst Steve Wilson, “but achieving the required data rates requires new approaches and more complex solutions. UWB technology has bandwidth advantages at in-room distances but drops rapidly at greater ranges. 60 GHz allows high data rates, but so far only one company is even close to a viable solution.”
Small numbers of 5 GHz and UWB devices are currently shipping; demo products of 60 GHz systems are expected early next year. “Over the next two to three years, we’re going to see one or two of these wireless HDTV approaches emerge as the primary ones,” says Wilson.
Who would want wireless HDTV and why? Wireless will simplify some installations and allow more flexibility in positioning TVs. There are both commercial applications – digital signage, for example – and domestic applications such as wall-mounting a flat-screen HDTV. “The initial sweet spot in the market is where wired installation would be difficult or complicated,” says Wilson.
All the wireless HDTV silicon vendors are venture-backed startups and most established wireless vendors are waiting to see how the market evolves. Product manufacturers are moving forward with different strategies: some, like Westinghouse and Belkin are initially targeting commercial and custom installers where there is clear value-add. In contrast, some TV manufacturers such as Sharp and Hitachi are targeting buyers of their latest technology, offering design-oriented, elegant products that come with a wireless connectivity option. [ABI Research]
Starbucks Settles T-Mobile WiFi Lawsuit
Days after T-Mobile filed a lawsuit against Starbucks accusing it of breach of contract because it's allowing AT&T to provide customers with free WiFi access in its cafés, Starbucks announced it has reached an agreement with AT&T and T-Mobile. The AT&T promotion provides two hours of free WiFi to Starbucks customers who purchase a Starbucks Reward Card with a minimum of $5 credit on it. Customers must use their Starbucks Card at least once a month.
T-Mobile, which was the seven-year exclusive paid WiFi provider for Starbucks before the coffee chain transitioned to AT&T, filed a complaint earlier this week charging Starbucks with secretly devising the promotion with AT&T to provide free WiFi in its stores even though T-Mobile still has the right to exclusively sell and promote its WiFi service in Starbucks until the transition to AT&T is complete. Currently only two Starbucks stores have made the transition, the lawsuit said.
It's unclear what type of agreement Starbucks entered into with AT&T and T-Mobile but it appears the lawsuit won't go to trial. According to a T-Mobile spokesperson, "T-Mobile, AT&T, and Starbucks have entered into a memorandum of understanding to resolve their disputes and are committed to providing a high quality WiFi experience for customers. [FierceBroadbandWireless]
Survey: WiMAX Appealing to Consumers
A new survey of U.S. wireless users from In-Stat says WiMAX offers the right mix of features and pricing to appeal to consumers. Business users, however, will present a bigger challenge for WiMAX providers because they require ubiquitous coverage.
"When respondents were presented with service examples and picked the one they most preferred, the one representing WiMAX was picked more than two-to-one over the one representing 3G cellular data. Service descriptions include information on coverage, network performance, pricing, and usage limitations," said In-Stat analyst Daryl Schoolar.
Other findings from the survey:
- Respondents are very interested in a wireless broadband service that will allow them to connect multiple devices under a single service plan.
- Respondents want a service that can meet both their at home and away Internet needs.
- Fixed broadband operators are vulnerable to losing subscribers to WiMAX.
- Survey respondents reported increased usage of public wireless broadband between 2006 and 2007, with expectations for further increases in 2008. [FierceBroadbandWireless]
LTE Network Subscribers: From Zero to 32 Million in Three Years
Despite the fact that no LTE (Long Term Evolution) network is expected to be commercial before 2010, a new study from ABI Research forecasts that by 2013, there will be more than 32 million subscribers using LTE networks. Three of the largest mobile operators – China Mobile, Vodafone and Verizon Wireless – have announced plans to adopt LTE.
Asia-Pacific countries will account for the largest regional share. “ABI Research anticipates about 12 million Asia-Pacific LTE network subscribers in 2013, “ says senior analyst Nadine Manjaro. “The remainder will be split about 60-40% between Western Europe and North America.”
LTE commitments from NTT DoCoMo and KDDI in Japan will further boost adoption.
The long wait for the Chinese government to issue 3G licenses may become a factor driving LTE in that country: “It wouldn’t surprise me to see some operators skip over 3G and go straight to LTE,” says Manjaro. “Although China’s own TD-SCDMA 3G technology will be deployed on a small scale during the Olympics, I can’t see operators spending billions to implement that or any other 3G technology if they will just have to upgrade within a year or two.”
Since LTE deployment involves new hardware and software, a number of industry sectors stand to benefit. Before 2010, it will be vendors of the test equipment used to ensure network interoperability and performance. Next will come vendors of the required network infrastructure equipment itself.
Finally, it will be device manufacturers. Because LTE is primarily about data, not voice, its first phase will see devices such as USB dongles for computers: ABI Research estimates 53 million to ship by 2013. Because LTE will compete directly with cable and DSL services, in-home modems will also see volume shipments, as will Mobile Internet Devices (MIDs) and Ultra-Mobile PCs (UMPCs). Manjaro calls the device market “a huge opportunity.”
Nortel and Alvarion Teams on a Strategic WiMAX
Nortel and Alvarion Ltd. entered into a joint strategic WiMAX agreement to create an end-to-end WiMAX solution to meet the needs of the evolving wireless broadband market. The Nortel and Alvarion mobile WiMAX solution is expected to combine industry-leading technologies from both companies to allow operators around the globe - including well-established service providers and new entrants to the wireless market - to simply and efficiently deliver high-speed wireless broadband for a variety of applications, mobile or nomadic, including VoIP, streaming music, and HD video.
The joint solution features the integration of Alvarion's advanced radio access network technology, which has been proven in over 200 commercial WiMAX deployments, with Nortel's core network solutions, backhaul solutions, applications such as Nortel's number one carrier VoIP solution, and Nortel Global Services for WiMAX.. The Nortel and Alvarion WiMAX solution will allow operators to offer high speed wireless Internet access across large areas, including those currently underserved by broadband capabilities. The joint WiMAX solution will also provide the speed and capacity to help operators meet the exploding demand for true mobile broadband.
"Wireless broadband is one of the fastest growing opportunities in the telecommunications market," said Richard Lowe, president, Carrier Networks, Nortel. "Early movers in this market are looking for a high quality, turnkey WiMAX solution that delivers vast coverage in a cost-effective way and meets growing demand for true mobile broadband that can support new services like streaming music and mobile TV. The collaboration between Nortel and Alvarion will allow both companies to deliver on these needs quickly and efficiently with a world class WiMAX solution that is based on the best technology from each. The solution will also include Nortel services, ranging from network consulting, design and deployment to full network management, to help customers maximize network investments by providing the flexibility to handle changing coverage, capacity and other unique requirements."
"Nortel and Alvarion, both innovators in the wireless arena, are coming together to respond to the demand for WiMAX solutions in all regions of the world," said Tzvika Friedman, president and chief executive officer, Alvarion. "Alvarion's mature, extensively deployed WiMAX radio access network solution, together with Nortel's core network technology, applications and services will address the requirements of large WiMAX projects with the combined strength of both organizations. In keeping with our strategy of best of breed collaborations, this initiative will also allow us to tailor solutions and applications for specific customer needs. The platform offers WiMAX solutions for multiple frequency bands thus leveraging economies of scale from global deployments, expected to result in a lower cost of ownership for the customers."
The agreement also covers the resale by Nortel of the Alvarion platform of WiMAX access products in order to form the end-to-end solution for customers. Alvarion's development of its portfolio of leading-edge WiMAX base stations will be accelerated by Nortel's contribution of resources, expertise, and funding to enhance the development of the joint solution. Both companies will also work together to perform Interoperability Testing (IOT).
Alvarion will focus on device to network interoperability testing and Nortel will concentrate on the end-to-end network integration with the IP core, and applications. In order to incentivize the parties to engage in these activities, during the term of the agreement, Alvarion will be Nortel's exclusive supplier of WiMAX IEEE 802.16(e) 2X2/2X4 macro base stations and both parties have agreed to designate account leads in order to go to market in the most efficient and effective manner. [/pr/FierceWireless]
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