Home > Uncategorized > WiMAX, is it really a failure in Pakistan ?

WiMAX, is it really a failure in Pakistan ?

While there is a strong group of people who have always rejected WiMAX as a substitute of other Mediums of Internet Connection in Pakistan, 3-4 Major Players in Pakistan Kept investing in to WiMAX arena till early 2008. Rather couple of them are still investing like Augere and Wi-Tribe. Whether the operators in general got the success or not there is no denial to the fact the WiMAX networks roll outs are still happening not only in emerging economies but also in stable (stable Markets).

If i remember correctly, the arguments from ANTI WiMAX School of thought started from a point that some how the frequency interference is happening with some Satellite frequency band or some thing, then the issue of end to end business model raised very aggressively in regards of service delivery etc ( i know the pioneer deployment of WiMAX network initially had some issues in Pakistan). After that suddenly 3 more networks emerged and really struggled (and still are struggling) to get their size of Pie from existing low penetrated broadband market. Yes, they have faced challenges and might still be facing them for another couple of years or so till the time economic situation gets better however the Anti WIMAX group never got a real success in proving their claims that WiMAX is a Failure. Although many times at open forums as well as in closed meetings the operators investing in WiMAX technology were being called “foolish”

I was going through the recent update that Clearwire raises an additional $1.5B to continue building its nationwide WiMAX network

Sprint, Comcast, Time Warner Cable, and Bright House Networks (to name a few) continue to bet big on Clearwire’s WiMAX nationwide wireless network. The foursome have just pumped an additional $1.494 billion into Clearwire’s coffer, with another $50 million coming from Intel and $20 million from Eagle River Holdings. CHA-CHING.

More specifically, Sprint, which owns 51 percent of Clearwire, invested $1.176 billion, Comcast Corp. put in $196 million, Time Warner Cable Inc. dropped another $103 million, and Bright House Networks contributed a cool $19 million.

According to Christopher King, an analyst at Stifel Nicolaus, the new influx increased Clearwire’s cash stockpile to a whopping $1.8 billion and will help to mitigate the “funding gap” for its nationwide WiMAX network build-out to $3 billion. The new funds will purportedly allow Clearwire to hold off on raising more dough until at least the end of 2011.

So i am really trying to understand that whats the cause of a failure (as a business ) as they call it. I am not convinced at all that it is technology, even i don’t blame the timings however i personally think that the economic conditions and security situation has played a major role in limiting the growth of WiMAX networks. And this is not only related to WiMAX but i havent seen any major growth in other mediums like DSL or FTTH networks in Pakistan . It would be unjust to mention that CDMA 2 K has played a vital role in increasing the size of the pie for Broadband Wireless Networks.

It should be of interest to the readers that the approximate subscriber base of the WiMAX players in Pakistan is around 150 K at present where Wateen Claims to be at 100,000, Mobilink at 25,000 (in Karachi Only) , Wi-Tribe at 20,000 and Augere reaching the five figures.

Comments ?

Categories: Uncategorized
  1. Anonymous
    November 12, 2009 at 17:08

    WiMAX Might be able to beat DSL technically but not Fiber to the home concept

  2. ZeroKoOoL
    November 12, 2009 at 17:22

    WiMax is a gap filler till we see LTE ( 3G maybe in Pakistan case) but the business model for mobile broadband (be is WiMax or 3G or LTE) isn't a cheap one. Although customer demand is their but the cost for the operator is higher in countries like Pakistan where mobile content hasn't picked up. Western countries not only relay on the mobile broadband revenue but also the services on top of that basically the iphone model.

    I am sure a lot of radio expert will comment on the WiMax vs 3G vs LTE comparison but nevertheless the technology does work…how good and bad thats a different story. The maturity curve of WiMax technology isn't present its only couple of years that we have see WiMax emerged and so far it has only improved but the real challenge will come once LTE is in operations.

    /Majid

  3. Ronin
    November 26, 2009 at 13:09

    With bandwidth cap like 15 GB – they don’t

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