Wi-Max - just an expanded Wi-Fi?20 March 2006
Many UK residents and workers will be familiar with Wi-Fi networks, otherwise known as WLANs (wireless LANs). Wi-Fi technology allows businesses and home users to connect their PCs to high-speed broadband networks wirelessly. A similar system that people may not have heard so much about however, is Wi-Max.
Wi-Max is similar to Wi-Fi in that it grants wireless broadband access, but the difference is that a Wi-Max access point could offer people within a three to ten kilometre radius the chance to connect. Wi-Fi technology, in comparison, only allows users to connect if they are within a range of up to about 50 metres.
It is mainly for this reason that Wi-Max has long been touted as the natural successor to Wi-Fi networks and third-generation (3G) mobile services. However, a report published earlier this week by the Organisation for Economic Cooperation and Development (OECD) has cast doubts about the system's future.
Disruptive influence
Although the OECD admits that a single Wi-Max access point could "theoretically allow hundreds of business connections at 1.5 megabits per second and thousands of residential connections at 256 kilobits per second", the global organisation claims that problems surrounding regulatory and security issues could prevent a concerned uptake of the service.
Regardless of receiving support from chip-manufacturing giant Intel, the OECD believes that Wi-Max could turn into a "disruptive" influence and interfere with the business models of existing 3G firms and internet service providers. "Despite all the excitement over Wi-Max, the ultimate role of Wi-Max in the wireless market is debatable," the report's authors said.
The economics institute points to the fact that many 3G suppliers have invested significant amounts of money in new networks recently and are unlikely to want to go through another costly upheaval. The report said: "Third-generation mobile operators have incurred great expense to roll out new networks and the prospect of starting again with a new Wi-Max network is not appealing."
Remote access for remote areas
However, the OECD report was not entirely negative towards Wi-Max, as the benefits of the system are plain for all to see. Whereas many offices in urban and suburban areas benefit from Wi-Fi networks, the significantly increased range of Wi-Max could allow remote rural regions to connect to high-speed broadband internet connections.
Industry analysts suggest that the two technologies could ultimately end up complementing each other, with Wi-Max access points used to connect separate Wi-Fi "islands", allowing more people in difficult to get to areas to enjoy the benefits of broadband connections.
In the meantime the popularity of Wi-Max continues to grow, as does the uptake of Wi-Fi services. A recent survey be research firm Infonetics predicted that global revenues from Wi-Max will reach $142 million (£81 million) during 2006 and will increased tenfold by 2009. Meanwhile, revenues generated through Wi-Fi technology exceeded $2.4 billion (£1.4 billion) over the last 12 months, with analysts forecasting that the market will reach $3.9 billion (£2.2 billion) before the end of the decade.
Infonetics largely attributed the predicted rise in the wireless internet industry to a surge of uptake by small businesses, with smaller firms expected to increase their combined spending on Wi-Fi and Wi-Max services by 120 per cent over the next ten years.
With more and more businesses embracing wireless broadband technology, products such as BT Internet Security Pack can ensure small firms stay protected online.
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