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| Wi-Fi continues to thrive in cities. (Photo: BBC) |
This wide-area wireless connectivity technology is unlikely to overshadow Wi-Fi in densely populated areas and will only be appreciated in remote and isolated regions. Additionally, security issues and frequency bands also limit the popularity of WiMax.
WiMax can transmit data at speeds of up to 40 Mb/s over a relatively large range (10 km). A WiMax-supported area, in theory, could allow hundreds of businesses to connect at 1.5 Mb/s and thousands of households to access at 256 Kb/s. As a result, many believe it to be the “perfect” alternative to Wi-Fi (which offers higher access speeds but only covers a range of a few dozen meters). Furthermore, Intel, one of the companies promoting WiMax, describes it as a technology with great potential for businesses, from mobile phone companies to network service providers.
However, the Organisation for Economic Co-operation and Development (OECD) asserts that WiMax has too many shortcomings to ensure a rosy future.
Despite the WiMax Forum tightening standards to reduce costs, operational expenses remain very high, and other technical issues threaten the success of this technology. Establishing a national WiMax network in the United States could cost over $3 billion. “Third-generation network operators have already borne a significant investment to deploy 3G. The prospect of having to invest even more billions to start with WiMax is something no one wants to accept,” the OECD explains.
Moreover, mobile phone companies also seem to favor other alternative technologies such as HSDPA (High-Speed Downlink Packet Access). More importantly, the frequency band that WiMax uses is not compatible in every country, and service providers must quickly address security concerns.
