Crossing the divide with confidence : will WiMAX shrink the world again?
Recent years have seen the world around us shrink dramatically. First, GSM revolutionised voice communications; more recently, the march of broadband has revolutionised data communications and, with the advent of the outsourced “cloud”, IP has changed the way companies and individuals manage their personal and business lives for ever. But now, is the scene set for WiMAX to take us into another new era of change?
In WiMAX, we have long sensed a commercial opportunity may be emerging for carriers keen to achieve a competitive edge yet constrained by the high cost of traditional mobile and fixed networks. Commentators increasingly believe this time may be upon us, and 2010 could be the year when WiMAX hits critical mass just as 2006 saw VoIP seize market attention.
Whilst VoIP promised greater efficiencies, and has proved highly popular with the end-user, it presents some practical user limitations – chiefly the basic need to operate it from a fixed computer terminal. Nonetheless, the telecoms sector has embraced the VoIP dream, driven by the realisation that every home around the world with a broadband connection presents a potential customer opportunity. And as the telco sector continues to stack up its profits even in tough economic times, who can blame IP entrepreneurs for longing for a slice of the voice business?
Of the many challenges which lie in wait for the VoIP telco, two in particular are worth special consideration.
The first is that, in leveraging the existing broadband infrastructure, VoIP has come to inhabit a world where quality is a persistent headache, and the last mile cost is high.
The second is the critical interconnect billing scenario which lies waiting in the long grass for VoIP carriers. It is fair to conclude that the idea of interconnect billing is not always prominent in the mind of a typical VoIP carrier at the launch stage. Their domain expertise for IT will be very high, but possibly less so for traditional telecoms.
Interconnect issues arise, as is logical, as soon as a call leaves its VoIP network and lands on a traditional mobile or fixed number. (For instance, if one Skypes-out to a friend on a GSM network). Problem no. 1 is that interconnect (termination) charges will now be levied, and the VoIP carrier is suddenly in a wholesale settlement process which it may or may not understand, and (unless it has seen fit to deploy an interconnect billing solution) may lack the tools to manage.
Problem no. 2 is that, whilst the VoIP carrier is perfectly content to deal in the nice, simple data packets which it knows and loves, the interconnect partner terminating the call is living in a completely different world where xDRs are the accepted currency of choice.
A proven, auditable interconnect billing system is therefore a strategic requirement for VoIP carriers keen to avoid being at the mercy of the existing carriers. By implementing such a system the carrier can ‘cross the divide’ with confidence, play in the commercial world of voice traffic, and meet head on the world of the xDR and the mysteries of reconciliation and settlement. Without it, the traditional telcos are unlikely to play ball.
WiMAX and the Digital Divide
WiMAX now appears ready to deliver a different network model which can satisfy both the the last mile headache and the quality issues. High quality, cost-effective base stations can now provide 20-30km of local coverage, and QoS has been seen to be comparable with mid-range DSL. We can expect to see voice over WiMAX make gains in the market just as voice over IP did earlier this decade.
However, the dream of a truly mobile IP voice product may now also be imminent. Hardware manufacturer Beceem recently released a WiMAX chipset no larger than a piece of chewing gum. And the holy grail – a true WiMAX VoIP handset – was recently announced to the market by Fujitsu, which is to supply the devices to Smile Communications, a launch operator whose goal is to bring affordable communications to underserved customers in Africa and similar developing markets. WiMAX may have problems dealing with the noise and interference of built up city areas, but it’s in its element on the wide open spaces of Africa and the Middle East.
As IP voice widens onto WiMAX, and WiMAX begins to mature into a genuine mobile communications platform capable of competing with and undercutting GSM, we may see the world shrink further to welcome the economically disadvantaged into the world of modern telecommunications. As before, two technical worlds will still shake hands – the world of WiMAX data, and the world of the xDR, to produce timely interconnect settlements and protect revenue.