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WiMAX Market Penetration Strategies
Given the low cost and adaptability of WiMAX a series of market verticals enable service providers to line up anchor tenants from which larger networks are grown.
The PSTN as we know it, was built on a one-size-fits-all plan and, given the relative high cost of building out such networks, they had to be done on an economy of scale that in turn, led to a "well regulated monopoly" with government mandated "universal service" (ie the service provider must service everyone). WiMAX is the inverse. The relative low cost of WiMAX (including licensed spectrum) compared to building out a copper wire and big phone switch PSTN when coupled with the high ARPU through offering a series of services enables service providers to roll out services quickly and inexpensively.
One strategy for WiMAX service providers is to line up an enterprise tenant with multiple locations across a given market, a petroleum company with 100 gas stations across Los Angeles for example. In the initial roll-out, the base stations provide service to the gas stations in their zone of coverage. The subscription fees from the big petroleum retailer offer a reasonable return on investment. Fortunately, the gas stations take up only a small portion of the capacity of the base stations (think 500 simultaneous sessions). This enables a service provider to fill up the capacities on those base stations with other enterprise or even residential subscribers. Its all gravy from there.
The enterprise anchor tenant(s) could be a range of industries. Transportation, think delivery services like FEDEX) could always use more intelligence in their services. Imagine the beer or Coke distributor knowing exactly which retail outlets and vending machines need stocking. How many man hours and gallons of diesel fule would that save every day in any given city?
Memo to WiMAX business world: define an industry, get an anchor tenant in that industry, build out the network for the anchor tenant and then pile on the other subs for fun and profit!
Frank Ohrtman
WMX Systems
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