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No
Strings Attached?
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October
2001
While
the subject of whether to use fixed wireless, DSL or a cable
modem for broadband access for broadband continues to be hotly
debated across Europe – especially since many potential users
are becoming increasingly frustrated by the slow rollout of
DSL – Broadband asks: ‘is there really that much difference?’
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Unmetered broadband
Internet access has the potential to change the lives of those subscribers
who are lucky enough to get a connection. Internet surfers no longer
have to lose sleep over the duration of their session, there is
no logging on or off and, most importantly, navigating the global
Internet is no longer a chore but a pleasure. In addition, broadband
promises to facilitate a huge range of new services that can be
accessed via the TV.
In short, as
soon as the public catches on to the advantages on broadband – and
also when content providers wake up to the potential money-spinning
applications that its facilitates – a high bandwidth pipe into the
house will be a ‘must-have’ for great swathes of Europe’s population.
And this is something that has not been lost on the various manufacturers
of broadband connections. Each is gearing up for the anticipated
explosion in demand and talking up the benefits and advantages of
their respective technologies.
While DSL and
cable modems have attempted to establish themselves in the public
conscience as the two main contenders to provide the broadband link
into the home, the slow roll out of each has eroded much of the
public confidence in them and opened the door to another – less
publicised – technology, broadband fixed wireless, which is beginning
to establish a foothold.
Complementary
Unfortunately,
however, it is not as simple as that. "Each of the options to bring
broadband to the user are complementary services,” says Alan Menezes,
vice president of marketing, Aperto Networks. “No one technology
can offer total coverage. For instance, cable modems are predominately
restricted to the residential market, DSL will not be economical
to roll out to the entire population, and fixed wireless has limited
deployment. However, fixed wireless can add subscribers rapidly,
with same day service delivery," he says.
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Earlier this
year, Aperto introduced a scaleable, point to multipoint ‘PacketWave’
family of base stations and subscriber units for 2.5, 3.5, 5.3 and
5.8GHz frequency bands for carrier networks worldwide. "The technology
is now available for both line-of-sight and non line-of-site, via
an optimised link which improves the usability of fixed wireless
in densely populated areas," says Menezes.
However, says
David Rimmington, director of strategy for Bulldog Communications
– which is deploying a UK-based competitive local exchange carrier
model based on DSL – the operating service levels and quality of
service (QoS) are far higher with DSL because it is a straight connection
to the phone exchange with guaranteed access.
Furthermore,
he says, "Fixed Wireless is a proprietary technology, which ties
users to one company. DSL, on the other hand, is a global standard.
Many DSL vendors are fully-interoperable, thereby providing users
with quality of service, cost advantages and a wider variety of
services."
While on paper
DSL may offer the superior broadband solution, in reality the public
remains sceptical. According to research published in October 2001
by Rhetorik, ADSL broadband has yet to make any significant impact
on the UK business market. The research reveals that less than two
per cent of UK companies have installed DSL technology as their
primary Internet connection. The reasons why DSL is failing to make
a significant impact is a moot point, but the fact is that it’s
not – leaving the market wide open to competitors.
Academic
One of
the many criticisms levelled at DSL and cable modems is the time
it takes for them to be deployed. By contrast, proponents of broadband
fixed wireless say that their systems can be up and running in days.
Other’s still believe arguments relating to the relative merits
of different broadband access technologies are largely academic.
"It is not
so much a question of how long people will wait, but what applications
they will need broadband connections for. Cable modems are, in fact,
already available to many consumers across the UK via providers
NTL and Telewest. The problem is the lack of available content and
applications to drive the uptake of these broadband connections,"
says Greenwoods Communication’s Steve Foster.
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"So far, product
technology has overtaken consumer demand – cable modems have been
developed, but few people will buy them until they have a use for
them. While they continue to use narrowband applications such as
email, there is little justification for investing in broadband
technologies. In fact, industry figures show that 70 per cent of
Internet users still rely on dial-up connections," says Foster.
He continues:
"It is now up to the content providers to develop content that will
drive consumers to invest in new broadband technologies, and it
is only then that we will see a sharp uptake in broadband connections,
whether via fixed wireless link, cable modem or eventually DSL,
" he says.
Furthermore, says Quallaby’s Mark Stancombe, it is not only the
other broadband access technologies that suffer negative publicity,
wireless’ reputation is also being tarnished. "Even today, Vodafone
has announced that it does not believe 3G will be capable of the
fast speeds touted in the industry, so again wireless is receiving
negative press. The bottom line is that most of us now know someone
who has a DSL connection and are most likely to go with it for convenience
when we can get it,” he says.
Disagreement
Yet, Elliott
Mueller, CEO of UK-based broadband fixed wireless operator, Tele2,
disagrees. "Its evident that people aren't waiting for DSL. Businesses
across the country are signing up for Tele2's fixed broadband wireless
access and it's not surprising. It offers speeds of up to 2Mbps,
the tariff begins at under 65 euros per month and it’s available
now. Tele2 is providing the high speed Internet service that businesses
have been crying out for and is currently expanding its service
to many more regions in the UK - Tele2 is making Broadband Britain
happen."
Nevertheless,
broadband fixed wireless technology remains a contentious issue
with many sceptics. "Broadband fixed wireless is a tempting idea,
but I think there is a long road to travel before the general public
understand that such a service is available. When Ionica – which
offered a regular telephone service with a wireless local loop –
failed in 1998, it was not that the technology wasn't up to the
job. Rather, it was that too few people got the message – only 50,000
households signed up for the service," says Martyn Davies, European
product manager for Eicon Networks.
Just marketing?
But it is not
just the marketing efforts of broadband fixed wireless that need
to be highly focused and clear, the sector needs to overcome its
Achilles heal before the technology can become a truly viable broadband
alternative – a point illustrated by RAD data communication’s UK
MD, Grant Notman.
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"I am aware
of the DSL market and the good it can do for my business, but the
service is just not available in my area. So, I enquired about a
radio link. This has not been as simple as I thought, as we are
located in an area with trees. Essentially, this means that either
we will need a very tall mast or that we will get a signal quality
that may vary from good to no signal at all."
Undoubtedly,
the debate over access methods will run and run, but a clear pattern
appears to be emerging. While the general public will probably wait
for a telemarketer to call them offering them either DSL or cable
broadband, the business community, which is ever more dependent
on fast online access, does not have that luxury.
It is, therefore,
the small and medium sized enterprises (SMEs) – often referred to
as the ‘backbone of the economy’ – that will propel broadband fixed
wireless forward. Ultimately, however, this will mean that broadband
fixed wireless will form the ‘backbone’ of broadband Europe, doesn’t
it?
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