WiFi vs. WiMax

Comparing WiMax to WiFi is akin to comparing apples to oranges. Initially it’s easy to see why the comparison would exist, as most people think WiMax is merely a more robust version of WiFi. Indeed they are both wireless broadband technologies, but they differ in the technical execution and ultimately their business case is very different. In addition to the technical differences that exist, the marketplace difference is that equipment is more or less non-existent for WiMax and certainly not geared towards a residential environment with very high pricing to be expected. It will take at least 2 years to see equipment of mass market uptake pricing.

WiMax will not be commercially available until the second half of 2005, and even then at a very controlled level. This is primarily due to standardization issues. In fact, it won’t be until 2006 that a robust production and implementation will happen due to the ramp-up period for manufacturers. This is certainly one challenge to the widespread adoption of WiMax. Additionally, WiMax will have issues of pricing, and will remain far more expensive than WiFi. WiMax will be primarily adopted by businesses to replace or displace DSL, and offices that want to cover a lot of territory without entering the world of endless repeaters that are necessary with the 802.11 technologies. It will take some time (2 years) for WiMax to significantly reduce its price-point for residential uptake.  WiMax will not displace WiFi in the home because WiFi is advancing in terms of speed and technology. Each year brings a new variant to the 802.11 area with various improvements.

Additionally, for commercial deployment, frequency allocation will be an issue. With the three dominant communications players controlling the best frequencies, it will be hard to get the type of traction needed with the remaining companies operating in the frequencies available. WiMax will become extremely robust and displace WiFi as the deployment of choice for commercial deployments, but that won’t even begin until the end of 2006. Based upon the number of public hotspots already deployed, WiMax will not be chosen to replace those as they are up and running adequately and personnel involved understand how to work with the technology. The business case does not exist at the hotspot level. Where it may exist is for wider free use deployments such as city deployments (free ones) and other government sponsored or carrier sponsored (with ultra inexpensive pricing for consumers) deployments. If this happens then its not only WiFi that will be displaced, but cable and DSL will also lose a percentage of their subscriber base. What will cause the displacement is the consumer’s proven desire for a bundled package.