While WiMAX technology will offer high-speed data and possibly mobile video service, the greatest prospects for the technology will include voice services, truly unified messaging and mobility. Essentially a wireless IP service that was initially envisioned for fixed line broadband replacement, the WiMAX standard also includes key features for successful voice deployment. In light of the success of residential and business VoIP, industry analysts are predicting voice services will play an equally important role in successful WiMAX networks. With a number of major communications hardware manufacturers committed to meeting the anticipated demand for WiMAX, operators can anticipate a wide variety of new WiMAX-enabled devices designed to access converged voice and data services.

Built-in quality-of-service (QoS) and low latency enable fixed-line operators to deploy mobile voice services using WiMAX. This, in turn, enables them to compete more effectively against traditional mobile operators that struggle to augment their 3G networks with compelling data offerings. In-Stat predicts that Voice over WiMAX (VoWiMAX) subscription will grow from just 76,000 in 2006 to over 19 million by the end of 2011 (In-Stat, 12/06). This rapid growth rate is made possible by softswitch platforms, which allow operators to offer voice services including Unified Messaging (UM), and voicemail over virtually any combination of access network.

The rise in VoWiMAX coincides with another growth trend in the small and medium business market (SMB): the rise in adoption of converged VoIP services. Operators courting this much-coveted segment will be able to take advantage of WiMAX fixed wireless services first and then naturally evolve these services to include mobility as the technology matures and more low cost end-user devices become available. Mobile variants of business services, like hosted IP PBX and conferencing that will utilize mobile terminals as integrated extensions of office lines, will offer additional revenue opportunities for operators when combined with the mobile WiMAX variant.

Data-only wireless broadband offerings such as LMDS and MMDS have not fared terribly well in the past. The high cost of deployment meant that typically only price insensitive business users in developed countries could afford service. The cost of deploying WiMAX networks is also high, so new entrants into the WiMAX arena are considering the positive impact on revenues and subscriber retention that voice services will play. In-Stat analysis found in a recent comparison of data-only and data-plus voice service offerings that with just a 20 percent penetration rate for voice services, average revenue per user (ARPU) increases 6.7 percent (In-Stat, 12/06). The business case for voice is further strengthened by its user retention properties. Advanced voice services including personalized portals, unified messaging, and Web self care promote subscriber loyalty.

WiMAX equipment and softswitch platform vendors are meeting the growing demand for VoWiMAX services by developing joint offerings catering to the market. These integrated solutions enable operators to deploy exciting new business and residential services in which user profiles, preferences and service selection seamlessly span across both fixed and mobile networks. For example, MetaSwitch, a switching and IP applications vendor, and SOMA Networks, a provider of Mobile WiMAX solutions, recently announced a partnership to provide just such a pre-integrated, broadband wireless offering.

With theoretical speeds reaching 40 Mbps from over 10 kilometers away, WiMAX holds significant potential to join cable and DSL as a much anticipated third option for direct-to-subscriber fixed and mobile broadband services. The technology’s promotion by leading hardware manufacturers including Intel, Motorola, Samsung and Nokia, in conjunction with notable U.S. service providers Clearwire and Sprint Nextel, suggests a compelling broadband competitor to the prevailing access technologies of today.

In the Caribbean and Latin America, where broadband access and fixed line teledensity are comparatively low, particularly in rural areas, WiMAX represents a compelling technology for residential and business customers. WiMAX overcomes the challenges of inadequate and non-existent last-mile infrastructure and allows competitive carriers to immediately reach a broad base of customers. A recent example is the plan by Telmex to rollout WiMAX networks in Chile, Argentina and Peru to gain access to customers that are otherwise served by the incumbent operators. In less developed Caribbean and Latin American markets, where there is little or insufficient copper plant, WiMAX may also enjoy a substantial cost advantage over DSL.

In the U.S., the potential for WiMAX to really take-off is further bolstered by an encouraging regulatory climate. FCC Chairman Kevin Martin publicly stated his intention to facilitate greater access to lower-cost broadband services for all Americans: “The most important step we can take to provide affordable broadband to all Americans is to facilitate the deployment of a third pipe into the home.” This is critical since the extent of the technology’s uptake is largely gated by regulations which determine which spectrum applies, how the spectrum can be used, and when it’s made available.

Rural markets often have limited broadband coverage, and competition for licenses from major nationwide providers is significantly lower. This presents a golden opportunity for greenfields and established operators alike to become significant players in fixed and mobile WiMAX services, leading off with voice. While price barriers surrounding usable spectrum in some of the largest markets will no doubt inhibit would-be competitive players from entering the WiMAX arena, the upcoming auction at 700 Mhz may effectively lower the price barrier to entry, particularly in more rural markets where competition for licenses is less fierce. The 700 MHz band was traditionally reserved for television broadcasters, but with the transition from analog to digital TV, the FCC has earmarked that spectrum for wireless broadband services.

WiMAX also anticipates a natural progression to fixed/mobile convergence (FMC) without complex multiple network integration. The simultaneous development of WiMAX for fixed wireless, portable, as well as fully mobile solutions means that voice services and applications deployed over the fixed WiMAX access network can simply be migrated to the mobile version of WiMAX as the technology matures and terminal devices become available. In the U.S., Clearwire Corp., the world’s largest WiMAX network provider, recently won final FCC approval for its own WiMAX laptop card, an important step in its solution portability story.

Pre-integrated solutions comprising softswitch platforms, WiMAX network access gear and CPE provide a compelling solution today that rapidly scales beyond data-only service to include enhanced mobile broadband services. With leading vendors now presenting pre-integrated solutions, regulations easing, and large equipment manufacturers gearing up to serve the evolving consumer market, the case for VoWiMAX is compelling.

A lesson learned from comparable fixed line deployments in cable and DSL is that subscribers will utilize their broadband connections for voice services whether their own operator makes these services available or not. Operators armed with this knowledge will act accordingly. They’ll offer voice services early on, comfortable in the knowledge that these initial voice deployments will accelerate revenue growth as WiMAX technology matures to full mobility.

Dan Marcus is Director of Marketing for MetaSwitch.