WiMAX backers hope to bag broadband funding

Will wireless broadband have a starring role in helping to bridge the digital divide in America? More than 300 applications for US broadband stimulus funds say yes, probably.

According to industry group the WiMAX Forum, WiMAX featured in one quarter of last mile broadband stimulus applications received by the National Telecommunications and Information Administration (NTIA) and the Department of Agriculture’s RUS fund. In total, WiMAX-related applicants applied for $1.6 billion (€1.06 billion) of the $14.2 billion (€9.44 billion) requested by 1,130 total applicants for last mile deployments. Phew!

The first round of broadband stimulus funds was wildly oversubscribed, with bidders applying for almost $28 billion in total, even though only $4 billion in total funds available in the first round. Crunch the numbers and you find that in financial terms, the percentage of funds requested for WiMAX deployment is much lower. WiMAX proponents say that’s because the technology delivers more bang for the buck.

“WiMAX can be deployed over wide areas to serve thousands of consumers cheaper and faster than traditional wireline services,” said Ron Resnick, president and chairman of the WiMAX Forum. “For every dollar spent on a new network, a WiMAX operator can cover 10 to 20 times the number of homes and businesses with WiMAX service than they can cover with wireline. These savings are passed along to the customer, who spends only $25-35 a month on a WiMAX connection with comparable speed to a $50-60 cable or wireline connection.”

The speeds offered by WiMAX, typically between 5 and 15 Mbps, are well suited to today’s needs, providing that TV services aren’t part of the equation. For that, fibre-to-the-home would be more appropriate, but there’s no indication so far what proportion of the US stimulus funding applicants want to build fibre networks.

Here in the UK, WiMAX is currently getting less press and interest than good-old WiFi, with the county town of Swindon deciding to launch commercial WiFi services for all its inhabitants starting next year. WiMAX is here, of course, but right now it’s seeing more success as a fixed-line alternative aimed at businesses, rather than as a solution for filling in rural notspots.

Tags: USA, WiMAX