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Anytime, Anywhere Connectivity

Opportunities and risks for embedding WiMAX in Consumer Electronics

By Jeff Orr, Maravedis

Opportunities and risks for embedding WiMAX in Consumer Electronics

The announcement grabbing the most attention – and perhaps the most ambitious – of the second half of 2006 was Sprint Nextel’s intent to invest $3 billion for a Mobile WiMAX network covering 100 million potential subscribers by 2008. Sprint Nextel has enlisted the support of Motorola, Nokia, and Samsung as equipment partners, with each being assigned trial territories including Chicago, Washington D.C., and four cities in

Texas. A roadmap for 20 U.S. cities beyond the initial trials was announced in March 2007. Intel, LG Electronics, ZyXEL, ZTE, and other device manufacturers have been courted to build a product portfolio for the mid-2008 commercial launch.

Other notable Mobile WiMAX projects include Japan’s KDDI, which plans to complement its 3G voice offering with a WiMAX network, and Taiwan’s self-named “M-Taiwan” project. M-Taiwan attempts to tackle how mobile wireless technology can enhance public services by assembling corporate project teams focused on creating optimal application services and business plans. Enabling service coverage with these major infrastructure investments is critical. The range of consumer devices will be limited until network coverage is widely available.

Mobile WiMAX infrastructure and client devices to support the operator trials and commercial launches continue to emerge. Maravedis has identified more than 50 consumer electronics product announcements for Mobile WiMAX, from desktop customer premise equipment (CPE) to multi - mode ultra-mobile PCs to in-dash vehicle information and entertainment systems. Devices tha t enable WiMAX services for computing platforms such as laptop and desktop PCs were the first to emerge in 2006.

This year, dual-mode HSDPA/WiMAX handsets have been demonstrated, with general availability expected in 2008. Initial Mobile WiMAX chipsets are not optimized for power consumption and result in less than optimal battery life for handheld devices. This behavior, also seen in first generation handheld devices for GSM and CDMA protocols, will be overcome in the next 18 -24 months through improved OFDMA efficiencies and tighter integration of core building blocks.

Consumer access to Mobile WiMAX products will initially occur in sales channel partnerships with network operators. Subsidized product offerings bundled with 12-24 month contracts are expect ed. Carriers have learned from 3G data trials and deployments that consumers do not understand how to measure data consumption (How much of my monthly subscription is consumed when transferring an image or song?) as they do for voice minutes.

A fixed monthly cost is impractical for digital cameras and other consumer electronics devices that experience data transfers in bursts. As a result, Mobile WiMAX subscriptions will be offered based on time (unlimited use for an hour, day, or month) in addition to subscriptions based on monthly data consumption levels measured in MB and GB.

Additional sales channels for consumer devices will open as consumers seek solutions at retail and e -commerce without a service contract. Many analysts are forecasting significant growth in the global implementation of WiMAX networks and services. The home broadband experience can now be enjoyed anytime, anywhere using embedded WiMAX consumer electronics devices. Successful consumer electronics categories such as portable MP3 audio players and digital cameras rely on PC households to synchronize or transfer content. Mobile WiMAX connects these multimedia devices to the Internet, enabling new revenue sources for operators and content owners while providing convenience and valuable new services for consumers.

This report includes analysis of interviews with more than 35 leading consumer electronics vendors and WiMAX manufacturers. Findings from these interviews include opportunities and risks for embedding WiMAX in consumer electronics devices.

Get the report here