December 10th, 2008
by Ken Wieland
One of the themes running through last week’s WiMAX Forum Latin America Congress event was the importance operators attached to bundled packages as a way to gain market share.

VTR Globalcom, the largest cable TV operator in Chile, has managed to gain a creditable 40 percent slice of the country’s bundled services market after less than a decade in operation. It uses an HFC network to deliver voice, cable TV and high-speed internet (at speeds of up to 10Mbps), but it is now looking at WiMAX as a possible way to extend some form of a triple-play service to areas where its HFC network doesn’t reach.

If this could be done successfully, it would be an impressive addition to the WiMAX CV. A main limiting factor, however, is spectrum capacity. Trialling WiMAX at 3.5GHz (2×25MHz) in Chile, the top line internet access speeds VTR can deliver is around 1.2Mbps, which doesn’t leave much room for TV as part of the triple-play package.

Surprisingly perhaps, Gonzalo Dona, strategic technology director at VTR, doesn’t consider this comparatively low WiMAX downlink speed as necessarily a triple-play showstopper. He reckons the quality of SD (standard definition) TV, which chews up around 0.6Mbps, is “good enough”. He may well be right, particularly if the customers targeted by VTR for this service can’t get access to a range of TV channels, and at better visual quality, from another service provider.

And if video compression technology continues to improve sufficiently, WiMAX operators with not too much spectrum to spare may well be able to make a successful go at offering a TV service, but nothing has been proven yet.

Digicel, a pan-Caribbean mobile operator, is another company that sees bundled packages as key in attracting customers, and even positions itself as a ‘wireless media company’. It is already using WiMAX in Jamaica and Grand Cayman to offer fixed and nomadic broadband services to complement its GSM offering, but last month Digicel also became the first mobile operator in Jamaica to win a UHF STV licence. However, Digicel’s preferred way of delivering TV, at least for the time being, is not via WiMAX but through DVB-T (digital video broadcasting—terrestrial) networks, although Magnus Johansson, Digicel’s broadband group director, says he is exploring the business case viability of TV over WiMAX.

Suppliers of WiMAX over TV solutions, not surprisingly, are bullish about the technology. NextWave Wireless, which has developed a MXtv platform (TV over WiMAX) claims that for a WiMAX operator holding just 10MHz of spectrum, the MXtv platform can deliver 20 channels (at up to 30 frames per second) and still leave 60 percent capacity available for basic broadband connectivity services.

This sounds good, but the real test will be proving it in a commercial environment. But when (or if) TV over WiMAX success stories begin to emerge, it will be a significant boost to the technology’s prospects.

Ken Wieland is editor of WiMAX-Vision

Premier Telecommunication’s provider for Bermuda provides a full range of internet and voice services over a WiMAX network.

Unique situations often require unique and innovative solutions.  Perhaps, no one know that better then North Rock Communications who for the past 11 years has been providing a host of services including wireless broadband, ADSL, dialup internet service, local calling and long distance to the island of Bermuda.

City of Hamilton, Courtesy North Rock Communications

Bermuda, located in the North Atlantic 650 nautical miles from the next closest land mass (Cape Hatteras, North Carolina), is the oldest and most populous of the remaining British overseas territories.  Although commonly referred to as one island, the territory actually consists of 138 separate Islands with a total area of 21 square miles.  Bermuda’s capital, the City of Hamilton” lies on the largest of the islands which is often referred to as “Bermuda.”

Operating in the North Atlantic is not without its challenges.  In early September 2003, Hurricane Fabian made a direct hit on the island with winds of over 120mph, causing damages in excess of $300M USD.  Although the island suffered extensive damage, Northrock’s wireless network weathered the storm exceptionally well and demonstrated the advantages of a wireless network.  While many of the island’s land-line based carriers were down for 3-4 months, Northrock’s network suffered minimal damage and many of its customers were back on-line within a few days.  In 2004 Alvarion recognized North Rock Communications for their outstanding performance through Hurricane Fabian.

As unique as its geography, Bermuda is well known for its highly affluent economy and its prominence as an off-shore tax haven and global financial center.  Bermuda boasts the 2nd highest GDP in the world (behind Luxemburg) and is one of the largest insurance and re-insurance centers in the world with over 400 registered companies.

Bermuda’s prominence as a global center for finance and commerce has resulted in a highly evolved technology infrastructure.  The country is one of the most wired in the world with a 91% land-line penetration and greater than 85% internet penetration (80% of which is broadband).  The country although relatively small in subscribers, has a robust telecommunications industry with 5 internet service providers, 3 cellular carriers, 1 cable and 1 DSL provider.

The country’s business enviorment has driven Bermuda’s telecommunication’s companies to offer new and innovative services to its customer base.  North Rock was an early adopter of WiMAX and in 2006 was one of the first operators to launch a fixed WiMAX network.  Prior to its WiMAX network, North Rock launched its original fixed wireless network in 2000 using proprietary equipment.  North Rock Communications began offering their original fixed wireless to the corporate marketplace in January 2000, with residential wireless service coming on line in June 2002.

WiMAX Tower, Courtesy North Rock Communications

View from WiMAX Tower, Courtesy North Rock Communications

North Rock currently operates a fixed WiMAX network using Alvarion BreezeMAX equipment on licensed 3.5 GHz spectrum and plans to upgrade the existing equipment to a full mobile WiMAX network when 3.5 GHz wave 2 WiMAX equipment is certified next year.  The base stations will require upgrades to the radios while the CPEs in the filed are already “e” ready.

Offering full mobility, North Rock will be able to take advantage of some of the new 3.5GHz WiMAX devices such as USB dongles and other products such as laptops and handsets as they become available next year.

Vicki Coelho, General Manager of North Rock Communications added,”We are thrilled to be leading the roll out of WiMAX in Bermuda.  Our customers appreciate the one stop shopping.  The quality of service and high bandwidth addresses the needs of our sophisticated market.  We look forward to our mobile 4G network.”