Monday, January 11, 2010

LTE vs WiMAX - does the customer care ?

LTE vs WiMAX, what does it mean to a layman ? Are things gonna change for the better, with seamless broadband data access and which gives us a higher bang for the buck. Why does the FCC take a long time to make the spectrum available, is it a technology roadblock or are we ahead of time ?

This reminds me of the period when broadband providers were making inroads into AOL territory, a decade ago when dialup was the medium of access for internet. The roadrunners', and Comcasts' have come to stay and we cannot imagine a world without broadband ! So in this age of wordplay what matters to a consumer - a technology marvel or the best value for money ?

When AT&T and Verizon publicy shunned WiMAX for LTE, did they make a right choice or succumb to the vendor lobby ? Does speed really matter after a certain point, for example if you are getting 40Mbs for devices used for browsing the internet, would it make any difference if get 60Mbps ? Well all these questions and furthermore intrigue a common user.

Whether they bet on LTE, WiMAX, or some combination of the two, major carriers, hardware companies, and other telecommunications players cannot postpone decisions about their 4G plans–even though it’s not yet clear how the competing technologies will sort themselves out. Investing mammoth amounts of money on building out what may be a temporary technology is high risk–especially during the worst economic crisis since the Great Depression–but they can’t leave the market open to their competitors.

The matter of superiority, WiMAX vs. LTE, is mind-boggling to industry observers, even if it might not be to a genius, or to electrical and wireless engineers. Innovation advocates might see LTE as a natural evolution of technology. Yet some technology writers have described it as unusual, in the logical sequence of technological advancement. At least, the adoption of LTE shows that the best decision, in the acceleration of wireless-connectivity technology, is not to wait for the economic recession to hit rock bottom or reverse.

Here are some typical Myths debunked:

Myth: LTE is backwards compatible with 3G.
Reality: Strictly speaking, backwards compatibility implies that a 3G device can connect to an LTE base station. This is categorically not the case. LTE requires new base stations and new client devices. An HSPA handset will not be able to connect to an LTE base station, period.

Myth: LTE performance is better than WiMAX.
Reality: Because LTE & WiMAX are both based upon OFDMA-MIMO, there is not expected to be a significant performance delta over time. Because WiMAX will have been deployed commercially for over two years before the first LTE network is deployed in 2010, it may have superior performance initially.

Myth: LTE is an evolution of HSPA (3G)
Reality: The 3G evolution from WCDMA to HSPA was achieved via upgrades to operators’ existing 3G networks. LTE is not a 3G upgrade -- it must be deployed in new spectrum and requires a new radio access network (base station hardware, client devices) and connection to a new “all IP” core network (different from today’s 3G core networks.)It is possible to add LTE to existing 2G, 3G cell sites

Myth: Operators will replace their existing 2G/3G networks with LTE.
Reality: We expect operators to maintain their existing 2G or 3G networks for the foreseeable future. These networks are very efficient for voice and have built up good coverage over the years. Similar to WiMAX, LTE will initially be deployed as an overlay data network in new spectrum. Operators will offer multi-mode handsets (e.g,. HSPA + LTE or HSPA + WiMAX) to provide the best of both worlds (coverage + high speed) to their subscribers while they build out their 4G networks over several years.

Myth: WiMAX & 3G are competitors
Reality: We expect WiMAX & 3G to be complementary. Whereas the circuit-switched voice offered by 2G & 3G networks is very efficient, WiMAX provides about 3x more data capacity than today’s 3G networks. This means operators can maintain their existing 2G or 3G network for voice & narrower-band data, and deploy WiMAX for more data intensiveapplications.

Myth: WiMAX will not have as big a device selection as LTE
Reality: Even with the very first commercial Mobile WiMAX network in South Korea, we’ve already seen a level in the variety of devices which exceeds that available for 3G today. For example, one of the most popular form factors for accessing the Wibro network are WiMAX USBdongles with integrated MP3 players and/or storage. PC economics and innovation are backing WiMAX -- so one shouldn’t apply a traditianal “telecom” device model when comparing WiMAX & LTE.

Myth: The LTE standard is complete.
Reality: The LTE standard recently entered a phase where revisions are now under change control -- generally, this phase happens in 3GPP when a spec is 80% complete. The stated 3GPP target for “completion” is October 2008 and then the real work can begin to fix bugs and agree upon interoperable vendor equipment. 3GPP Release 9, a Release that has been functionally frozen in December 2009.

Myth: WiMAX will not have the same economies of scale as LTE.
Reality: Intel’s first generation Wi-Fi + WiMAX embedded module came out at a cost to PC OEMs of less than HALF the cost of 3G-only embedded modules,[1] even though 3G modules are relatively mature. Combine these “PC economics” with the 2+ years of TTM WiMAX has -- during which it will travel down the cost curve -- and we are not expecting to be cost disadvantaged.

Myth: WiMAX & LTE are going to converge.
Reality: Because WiMAX & LTE are so similar, some believe the two should converge. We’re not sure if such convergence will ever get traction, but for now, mobile WiMAX is two to three years ahead of LTE in terms of major commercial deployments and is moving full steamahead.

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