Journal Lays Out Broadband Wireless Landscape

These days, it is not that hard to see how people can get confused as to which type of wireless is which with all of the different standards out there. Now we throw in some of that ‘ol WiMax into the mix, turn on the oven and the pre-heat at 350. Personally, I’d be just happy as a clam to see more wireless Internet access in smaller to mid-sized towns like where I live on a public level, whatever the standard!

The Wall Street Journal exhaustively surveys the lay of the land for broadband wireless deployment: I estimate that this article took a few dozen hours and weeks of reportingósome of which surely found its way into other articlesóto pull together because of the number of companies and technologies involved. Itís a great overview that focuses on WiMax, metro Wi-Fi, and other broadband wireless as an alternative to the wirebase thatís needed by cell companies and service providers who donít own copper.

I particularly like the neat turn of phrase that encapsulates the entire WiMax branding and hype problem: One of the technologies drawing the most attention is WiMAX, which is similar to the popular Wi-Fi standard that millions of people have used to set up wireless networks in their homes but is slated to have a range of several miles. Since WiMAX has yet to be certified, companies are using precursors to the technology.

Exactly. Precursors arenít necessarily worse, but theyíre not interoperable and they donít bring the benefits of mass-market standardization to reduce the CPE (customer premises equipment) that will ultimately make broadband wireless affordable to the average home instead of a subset.

I love this bit of specious reasoning quoted about the landline side of things that are causing this competitive wireless marketplace to emerge. The Bells argue that they shouldnít be forced to share their lines. ďWeíre incurring all of the costs of building these networks and we donít feel we have to share them with our competitors below what it costs us to build and maintain our network,Ē says BellSouth spokesman Jeff Battcher.

I donít think anyone has ever asked the Bells to subsidize the cost, but rather to provide an accounting that shows the true costs. Itís clear that because the Bells can bundle services and make money across an entire customer package that they have every motivation to make their wire costs much higher to discourage having to resell access at a price that allows competition. In other words, if the Bell companies can arrange a markup over costs, why canít they resell at wholesale with a margin for competitors? They can, but they want it to appear as though they canít to preserve their bundling profits.