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WiMAX in the Enterprise: Access, Applications and Affordability

Description:    WiMAX will change the way enterprises view telecommunications. Telecom companies must service
                the customer in this new environment or some one else will. Customers could start demanding
                lower prices, or they'll turn to a new WiMAX operator or set up their own private network using
                WiMAX equipment. The technology gives businesses the ability to virtually manage their workforce
                and add and remove new services and applications quickly.

                This publication evaluates the deployment of a WiMAX network for an enterprise in terms of the
                author's unique analysis methodology of the "Three A's of WiMAX deployment", which are: Access,
                Affordability and Applications. Access refers to how an enterprise employee might access the
                Internet or corporate intranet. Internet skills are critical in the job market of 2007 and will be even
                more so in 2020. Affordability means bringing wireless broadband internet/intranet access to all
                employees may be surprisingly affordable. Compared to the telephone company's T1, the cost per
                megabit per employee for WiMAX services is very competitive. In terms of Applications, wireless
                broadband access and mobile computing come together via WiMAX to offer the enterprise a range
                of applications limited only by the imagination of enterprise leadership.

                This publication explores how WiMAX will change enterprise telecommunications in terms of access,
                applications and affordability. This matrix ultimately points to WiMAX holding a $36.4 billion market
                in US enterprises telecommunications services by 2013.

                Target Audience for Publication

                -Incumbent telecom operators
                -WiMAX solution providers
                -Vendors for WiMAX and/or the enterprise industries
                -Enterprise personnel responsible for computing and communications
                -Investors in the WiMAX space and/or enterprise automation

                Given its low cost adaptability for a wide range of telecommunications applications, enterprise
                WiMAX is predicted to be an almost $40 billion per year industry by 2014. Cisco’s recent acquisition
                of WiMAX vendor Navini points to the powerful logic for WiMAX as an enterprise application as well
                as carrier application.

                Written by WiMAX pioneer Frank Ohrtman (WiMAX Handbook, WiMAX in 50 Pages, consultant on
                some of the first telco deployments of WiMAX in the Western Hemisphere), the paper describes the
                potential for WiMAX in the enterprise in terms of the “3 A’s”: access, applications, and affordability.
                Access refers to a brief description of the technology of WiMAX and how it is the most cost effective
                means of delivering a wide range of enterprise telecommunications. Applications include the generic
                such as disaster recovery, converged voice and data as well as E1/T1 substitutes. Specific
                applications contained in the paper focus on industry verticals such as WiMAX for transportation,
                petroleum, utilities, agriculture and healthcare. Finally, “affordability” refers to how WiMAX in an
                enterprise setting can offer a very short return on investment while boosting worker productivity
                and trimming or eliminating traditional telecommunications costs in the enterprise.

                Given the decline in landline telephone service in favor of mobile voice, mobile data is expected to
                follow a similar trajectory and WiMAX presents a much more cost effective means of delivering that
                basket of services than 3G cellular, making it the obvious choice for the enterprise to replace their
                expensive legacy T1 overhead. This paper is a “must read” for any IT director seeking to add more
                intelligence into their employer’s processes translating into greater profitability.

                Author Info:
                Frank Ohrtman has almost 20 years experience in VoIP and wireless applications. He is the
                president of WMX Systems, LLC, a Denver, Colorado-based consulting and systems integration
                firm. Mr. Ohrtman learned to perform in-depth research and write succinct analyses during his
                years as a Navy Intelligence Officer (1981-1991) during which he specialized in electronic
                intelligence and electronic warfare. He is a veteran of U.S. Navy actions in Lebanon (awarded Navy
            Expeditionary Medal), Grenada, Libya (awarded Joint Service Commendation Medal), and the Gulf
            War (awarded National Defense Service Medal).

            His telecommunications career began with selling VoIP gateway switches for Netrix Corporation to
            long distance bypass carriers. He went on to promote softswitch solutions for Lucent Technologies
            (Qwest Account Manager) and Vsys (Western Region Sales Manager). His consulting clients include
            national governments and tier one telephone companies.

            Mr. Ohrtman is a Gerson Lehrman Group Scholar and serves as Dean of WiMAX for Applied
            Learning Solutions (http://www.e-als.com). He is a regular blogger and contributor to WiMAX.com
            and annual presenter at WiMAX World as well as local Cisco Users Groups. Mr. Ohrtman serves as
            an advisor to Bush Telecommunications Pty Ltd and the Rural Broadband Consortium of Australia.

            Mr. Ohrtman holds a Master of Science degree in Telecommunications from Colorado University
            College of Engineering (master's thesis: "Softswitch As Class 4 Replacement-A Disruptive
            Technology"), a Master of Arts degree in International Relations from Boston University and a
            Bachelor of Arts, Political Science, from University of Iowa



Contents:   3 A's of WiMAX in the Enterprise 1
            Introduction: WiMAX, Enterprise Telecommunications and The Next Telecom Boom 7
            XOHMTMThe Disruptor 8
            The 3 A's of the WiMAX-enabled Enterprise 10
            Access 11
            IMS Vision 12
            The Impact of WiMAX on Enterprise Connectivity 14
            Why WiMAX as access technology? 16
            Objections to WiMAX 17
            WiMAX is not Wi-Fi 18
            WiMAX Components 19
            WiMAX Base Stations 19
            Outdoor CPE 20
            Indoor CPE 21
            USB, Laptop card or similar 22
            Femtocells 23
            Relationship of WiMAX Range and Throughput for Enterprise Applications 24
            Link budget 25
            Limitations of the laptop 26
            MIMO 28
            MIMO as interference mitigating technology 29
            Adaptive Antenna System (AAS) as Interference Mitigation Technology 30
            Why 3G cannot compete with WiMAX 31
            Fixed vs Mobile WiMAX 32
            Why backhaul is important 32
            Wireless Backhaul Considerations 33
            Comparisons with Fiber 34
            Spectrum Considerations 35
            Access Conclusion 36
            Applications 37
            Relationship of Connectivity and Productivity 37
            Applications: Generic 39
            T1/DS3 Substitute = converged voice + data 39
            Voice (telephony): the "killer app" for WiMAX 41
            Disaster Recovery 43
            Combating high telecom costs and/or Building Diversity 45
            Applications: Specific-Industry Verticals 47
            Retail 47
            Banking 50
            Healthcare 52
            Transportation 55
            Utilities 58
            Case study: City of Corpus Christi 59
            Agriculture 61
Construction 64
Petroleum/Energy 65
Applications Conclusion 67
Affordability: WiMAX in the Enterprise 68
Service provider or "roll-your-own"? 69
Savings on Existing Expenditures 69
Strategies: A) subscribe from WiMAX service provider or 71
B) Deploy own enterprise network 71
Custom Built WiMAX Network for Enterprise Private Use 72
Base Station and Enterprise Density 73
Summary Affording WiMAX 74
Conclusion and Projections 75
"Landline migration" to "T1 migration" 75
Clearwire: a portent of things to come 76
Assumptions 79


Tables and Figures


Table 1 3G is technologically inferior to WiMAX 31
Table 2 Comparisons of wireless backhaul with other options 34
Table 3 Comparisons of wireless vs fiber optic cable as backhaul solution 35
Table 4 WiMAX-related spectrum 35
Table 5 What enterprises buy for data solutions 40
Table 6 WiMAX prioritizes VoIP packets over data packets for maximum QoS 42
Table 7 What does it cost your business per hour to be down? 43
Table 8 Availability figures in terms of downtime per year 43
Table 9 Generic applications for enterprise WiMAX 46
Table 10 Cost comparisons of WiMAX and other forms of access for enterprise telecommunications
68
Table 11 Hypothetical comparisons of legacy telco servic prices to that of a XOHM-like WiMAX
service provider 71
Table 12 OPEX savings XOHM-type service vs legacy IT 72
Table 13 Hypothetical CAPEX for a WiMAX network to service 100 gas stations 74
Table 14 Hypothetical OPEX for gas station chain using WiMAX as substitute for telco services 74
Table 15 Telephone companies are losing 7% of their landline subscriber base every year 76


Figure 1 WiMAX offers a broad range of enterprise IT applications at highly competitive pricing and
very flexible access 9
Figure 2 The 3 elements that comprise a telecommunications network: Access, switching and
transport (backhaul) 11
Figure 3 Legacy "stovepipe" infrastructure cannot easily offer more than one service 12
Figure 4 IMS allows a subscriber to access any service on any device using any form of access 13
Figure 5 Progression of networking: from mainframe to WiMAX 15
Figure 6 WiMAX performance parameters make it an excellent enterprise technology 16
Figure 7 Wi-Fi serves a coffee shop or home WiMAX serves a city 18
Figure 8 WiMAX nomenclature: base station and subscriber station 19
Figure 9 WiMAX base station and antenna combinations 20
Figure 10 Outdoor CPE provide a superior link budget and QoS for enterprise subscribers in office
buildings 21
Figure 11 Some indoor CPE incorporate Wi-Fi access points and telephone ports 22
Figure 12 USB access devices make WiMAX access more convenient to use 22
Figure 13 Femtocells provide indoor coverage for WiMAX subscribers This is especially important for
use in RF unfriendly buildings 23
Figure 14 Line of sight offers better range and throughput than non line of sight 24
Figure 15 Link budget illustrated 25
Figure 16 On campus WiMAX delivers a throughput of multiple megabits per second 26
Figure 17 WiMAX extends employee access to the enterprise network enabling telecommuting,
hoteling, disaster recovery and other enterprise enhancing practices 27
Figure 18 8x8 MIMO provides 8 times the data streams of a single antenna system 28
Figure 19 Another view of MIMO where multiple antennas enable a bypass of interference 29
            Figure 20 By utilizing AAS and beam steering technologies, WiMAX mitigates interference 30
            Figure 21 Backhaul supports WiMAX base stations, which in turn support home office
            internet/corporate intranet access 33
            Figure 22 Networking and the work place: the geographic expansion of enterprise
            telecommunications services 38
            Figure 23 WiMAX services negate the need for legacy telco T1 services 39
            Figure 24 WiMAX supports enterprise voice and data 40
            Figure 25 WiMAX as disaster recovery solution or alternative to telephone company T1 or DSL
            services 44
            Figure 26 Destroyed telephone central office, 140 West Street, NYC, across from World Trae
            Center, September 15, 2001 45
            Figure 27 WiMAX can enable shopping for best price on telecom services 46
            Figure 28 Retail enterprise-wid adotpions of WiMAX could ad more intelligence in the enterprise
            making them more profitable 48
            Figure 29 WiMAX can replace a number of disassociated telecommunications services providing
            savings to the retailer both in telecommunications and manpower 49
            Figure 30 Use of WiMAX to network ATMs could save banks on networking costs while providing
            portability for those machines 51
            Figure 31 Mobile health car vans or buses could be networked via WiMAX 54
            Figure 32 The networked ambulance could boost life saving efficiencies for ambulance services 54
            Figure 33 WiMAX in support of the delivery industry 56
            Figure 34 WiMAX can be used to read a wide variety of utility meters 59
            Figure 35 Farmers need real time information, literally, "in the field" 61
            Figure 36 WiMAX may serve as a substitute for satellite based services for farmers 62
            Figure 37 Agriculture implement dealer in Pomeroy, Iowa using pre-WiMAX broadband wireless
            services 63
            Figure 38 WiMAX provides almost unlimited telecommunications services for job sites where ever
            they may be 65
            Figure 39 Problem solving and solutions inverted pyramid 67
            Figure 40 Potential telecom expenses for which WiMAX is a substitute and potentially reduces or
            eliminates some expenses 70
            Figure 41 An oil company can save on telecommunications by deploying an in-house WiMAX
            network 73
            Figure 42 Technology adoption curve 77
            Figure 43 WiMAX as a substitute for telco landline, T1, DS3 services is an S-curve; it consumes
            telco market share 78
            Figure 44 WiMAX will consume 7% of the per year of the US enterprise telecommunications market
            per year beginning in 2010 78



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