Opening up WiMAX

you need sustainability in order to allow robust technology to survive the test of time. Sustainability has an added challenge of making something work for all stakeholders and keep operational costs to a minimum. Pakistan has made a very quick leap from dial-up internet to broadband and despite the low internet penetration, corporations who are in it for the long haul, don’t question the ROI.  They know that things will fall into place eventually.
For the time being, everything is making mostly commercial sense. Wateen rolled out WiMAX almost a year ago, and Mobilink has chosen to tread waters more wary, but can’t help but help wonder how users in Pakistan will react to the new bandwagon. Because of the associated costs to get set up, the trickledown effect of WiMAX connectivity might not make it down to the bottom rungs of the pyramid a social internet was intended to influence. Companies, and quite rightly so, are about making business sense, but also want to inspire change amongst their customers. How can barriers for adoption be reduced so that there can be greater impact is a balancing act every company has to deal with.
When we heard about OneOpenWiMAX, we got in touch with the President and CEO of WiChorus, Rehan Jalil, to ask him more about the concept and it’s implications for the carriers and services providers.
Considering Rehan was the Chief Architect of WiMAX for Aperto Networks and has contributed in the architecture and development of three generations of broadband wireless, equipment and silicon, we thought he’d have the relevant experience to explain the concepts to us.

OneOpenWiMAX seems like the concept that would truly embrace what the power of technology was supposed to open up for the masses. Could you explain what OpenWiMAX is all about?
The wireless telecom industry, as it stands today, follows the old-school philosophy of proprietary interfaces and vertical integration.  It’s very similar to the IBM of the old times.  IBM used to make their own processors, their own operating systems, servers and their own application software.
This vertical integration hindered open innovation and competition and benefits that it brings along for the end users.  OneOpenWiMAX is about bringing the openness to the wireless telecom world and have it reap the significant benefits that come from open market competition, collaborative innovation and modularity.
OneOpenWiMAX works with key players in the WiMAX industry to realize the adoption of WiMAX Forum’s NWG specifications.  It is helping to convert paper specifications to a thriving eco-system of companies collaborating together based on these specifications and offering it to the end customers.

Isn’t the whole point of an open or free market so that competition can drive better quality and offers for consumers? Why would companies come on board with this?
It’s driven by the competitive landscape that service providers operate under in a given region.  Generally in one region there are multiple service providers vying for the same customer.  They want to ensure that when they deploy a network it should give them the competitive advantage to offer better service and margins than a competitor.  To achieve this basic objective, they need state-of-the-art technology and the flexibility to enhance the network, as and when needed.   Some major service providers in the WiMAX industry have realized that openness can bring this competitive advantage to them. By enabling them to pick the best infrastructure technology created by respective top vendors and simultaneously having the flexibility to enhance their network easily when needed.
This open and horizontal model works very well for those wireless equipment providers who prove to provide the most innovative and competitive solution for their piece.  Hence, the pull from the service provider customers and the push from the innovative equipment providers introduce the much-needed catalyst for the Open Model to gain momentum and succeed.  Even some open minded larger telecom equipment companies are considering it seriously and in some cases, have adopted it.

Despite IP and Convergence of communication networks, companies continue to have a challenge on how to increase revenues while still maintaining profits. Do you think companies in Pakistan have the vision and the budgets to generate healthy revenue streams?
WiMAX and 4G broadband business models come with an inherent challenge.  The flat-rate ARPU (Average Revenue Per User) will be lower, whereas the cost of offering true broadband service is higher, leaving little profit margins.  The key to increasing these margins is to operate the network most efficiently and implicitly offer additional revenue generating services on the same network.  This is achieved by deploying Smarter WiMAX networks.
WiMAX operators who are only prepared to offer dumb bit-pipes will soon find themselves challenged to compete against the operators who are planning to deploy Smart WiMAX networks that are open and flexible for enhancements, cost less to operate, offer better service and have easy means to add new revenue generating services.  WiMAX operators with dumb bit-pipe could only be left with one knob to attract new customer, the price drop.   Some operators in Pakistan have the vision and foresight and are planning to deploy open and smarter WiMAX networks to be prepared to compete effectively, maintaining higher margins.

What does 4G offer that will help align business objectives better than what companies have access to today? Would you say the markets and infrastructure here in Pakistan ready for 4G?
In the last decade or so, we witnessed how mobile phones provided easy access to voice communication to people at a massive scale in a very short time. Landline or Fixed Line Telephone, on the other hand, failed to provide even a fraction of same benefit.  The coming decade will likely witness the next major revolution in providing very high speed internet connectivity
to people, devices and machine over 4G wireless networks, anywhere and everywhere.  Landline broadband will again fail to provide similar scale in a short time, as will be provided by 4G wireless.  4G has the potential to transform how people and machines access, share and distribute information over internet.
Emerging countries like Pakistan, with limited landline access, are very suitable for 4G mobile broadband.

WiMAX CapEx is a fairly expensive proposition with regards to its installation. With network upgrades involved, there are only a handful of network service providers who are in a financial position to continue to monopolize the local market. Considering the kind of investment trends that exist in Pakistan, how would you suggest banks or lending agencies be convinced on the ROI?
It’s all relative and can be better understood by comparing with cost of landline access.  Imagine the cost of digging and installing copper or cable to every home in Pakistan and then maintaining that infrastructure to provide broadband access. Compare that cost to deploying few hundred or thousand base stations in a city and providing significant coverage to enable 4G mobile broadband service.
Pakistan is a very healthy market for WiMAX 4G, as landline broadband infrastructure is scarce and the quality is low.  The savvy service providers have realized the market potential and we see about 4 to 5 service providers with ample funds or strong financial backing through investors to seriously begin deploying WiMAX 4G Service. We will see lots of activity in this sector in the short term.

We’ve seen GSM operators making the move to converge their businesses with broadcast media companies or internet service providers and just merge and upgrade their overall offerings. What about WLL or other broadband service providers – what kind of companies should be looking towards making the move to adopt/roll-out WiMAX?
In Pakistan we are seeing major GSM operators like Mobilink and Wateen deploying WiMAX 4G Service, WLL operators like Telecard in association with a foreign partnership as well as multi-property foreign funded start-ups like WiTribe.   It’s almost a land grab opportunity for some to capture the most profitable customers earlier and capitalize on them.  Established GSM operators do get a significant advantage by having their tower infrastructure, experience of offering mobile service as well as having an established local sales and marketing channel.

Any stats you can share about WiMAX in emerging economies? Timelines? Trends?
One trend is pretty clear.  In almost all emerging countries, there are 3-4 serious service providers who are either already deploying WiMAX 4G service or are planning to deploy it.  The trend is primarily driven by the market opportunity of fulfilling the broadband connectivity needs by using the WiMAX 4G technology in a cost effective way.  It has the potential of changing the way we communicate, share and access information, by carrying internet in our pockets.

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