GLOBALCOMM 2006: WiMAX & Mesh Roundup
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1 GLOBALCOMM 2006: WiMAX & Mesh Roundup Analyst: P. Jarich Report Date: June 12, 2006 Markets: Wireless Infrastructure - Global Summary Issue Supercomm was never known as a major wireless trade show. Nobody expected a massive change from GLOBALCOMM. Yet, even over the last few years, it became obvious that Supercomm was beginning to respond to an interest in wireless technologies, including WiMAX and metro-scale This too carried over. Clearly, no vendor is likely to announce a major wireless initiative or innovation at a show such as GLOBALCOMM; the customer audience simply is not optimal. That did not stop vendors from highlighting or otherwise improving their wireless solution messaging at GLOBALCOMM. This raises questions about what happened at the show and what the larger message is. Perspective Current Perspective The WiMAX and WLAN mesh markets are both quite new; WiMAX gear was only initially certified at the beginning of the year, while mesh deployments are only now moving from small cities and trials to major commitments. Yet, with products WiMAX, pre-wimax, and mesh having been available for some time, vendors are now in a position where they need to differentiate their products in a relatively crowded market. Beyond the launch of cutting-edge innovations, incremental upgrades are key to solution differentiation. These upgrades allow vendors to address evolving market demands and make up for any deficiencies present from the initial launch. What s more, it is these upgrades that we saw at GLOBALCOMM. Alvarion improved its WiMAX offer by making self-install CPE a commercial option, while offering operators the option to launch services such as VoIP over its non-wimax 5 GHz BreezeACCESS VL (thanks to QoS and improved packet processing). Redline introduced a network and element management solution for its RedMAX product line, promising deployment and operations efficiencies. Motorola followed suit by improving its unlicensed Canopy line with new element and subscriber management capabilities, including bandwidth management. VCom, on the other hand, left bandwidth management to partners, teaming with PDF (policy decision function) and VoIP players in order to deliver operators an end-to-end WiMAX solution that includes voice capabilities. On the mesh front, solution upgrades were also the news of the show. In the core of the network, Cisco improved its mesh value proposition by extending mesh aggregation capabilities to its 7600 series routers. At the edge of the network, Motorola improved its mesh value proposition by bringing to market a dual-band 2.4/4.9 GHz PC card, driving public safety deployments with device diversity. In the absence of new product enhancements, all Strix could do was to highlight market momentum, though it made sure to point to enhancements implemented over the last year. Europe +33 (0) Or visit our Web site: 1
2 Alvarion: BreezeACCESS Alvarion: Availability of Self-install CPE Cisco: 7600 WiSM Upgrade Motorola: Canopy New BreezeACCESS release: BreezeACCESS VL 4.0. The 5 GHz product promises triple play services with 40,000 packet per second throughput, QoS support, and security enhancements (encryption, VLANs, CPE blocking). The solution is backwardscompatible with previous versions. Commercial availability of BreezeMAX Si, a self-installable, indoor WiMAX CPE. Part of the BreezeMAX 3500 family, the CPE supports TDD and FDD operations as well as QoS, and ten different operators have trialed it. Integration of mesh Wireless Service Module (WiSM) into the Cisco 7600 Series router, supporting access point aggregation while providing security capabilities, including WPA2, EAP, PEAP, and rogue AP detection. Introduction of Prizm 2.0, a network management platform for Canopy products. Prizm provides element management capabilities, bandwidth and authentication management, and a migration path to support Motorola s entire MOTOwi4 portfolio. Very positive. Enhancements to the BreezeACCESS platform allow Alvarion to support unlicensed spectrum operators with carrier gradeapplications. QoS, for example, provides voice traffic priority, while robust packet processing allows the solution to keep up with VoIP s small packets. Positive. While Alvarion had previously announced its selfinstall CPE, commercial availability signals that it is ready to go into operator networks. Likewise, the announcement provides an opportunity for Alvarion to highlight product capabilities and customer momentum. Positive. WiSM upgrades extend 7600 capabilities into mesh AP transport and aggregation, tapping a new market and complementing Cisco s mesh offer. Yet, the announcement fails to mention Cisco s mesh and extraneous features (rogue detection) highlight that mesh was not the primary consideration. Positive. Element and subscriber management upgrades make Canopy a much more robust offer, allowing operators to offer sophisticated services. Floating licenses, for example, present a compelling way for operators to charge for new capabilities. High. Unlicensed spectrum operators make up an important segment of Alvarion s customer base. Absent industry momentum behind 5 GHz WiMAX, the vendor needs to support its customers with a solution that meets their demands for a full suite of carriergrade services; the VL 4.0 does just that. High. Market momentum is one of Alvarion s greatest strengths in the WiMAX space. To execute on this advantage, however, it needs commercially available products that meet real operator demands such as selfinstallation. High. Cisco has put an emphasis on wireless transport and has launched its own mesh WiFi solution. Linking the two efforts is a logical step for the company. At the same time, it highlights Cisco s end-to-end mesh capabilities, a key differentiator in a market crowded with small players. High. Despite the market s promises, unlicensed spectrum WiMAX gear is unlikely to be available soon. In the meantime, Motorola must continue to meet market demands for carrier-grade solutions with its Canopy line, making management upgrades critical. High. Despite a reliance on unlicensed spectrum, wireless ISPs need capable access products. It is wellknown that applications such as voice are often outside the reach of most pre-wimax products. Alvarion s BreezeACCESS upgrades set the bar higher. Low. The fact that Alvarion s BreezeMAX Si has been trialed with ten operators may surprise some competitors and operators. It is well-known, however, that operators want self-installed kits and that Alvarion is a market leader planning to offer such a product. Moderate. Cisco s move clearly improves the WLAN mesh offer of a formidable competitor. Ultimately, however, there is no shortage of third-party aggregation devices that could offer similar functionality and Cisco has failed to rival the momentum of many mesh specialists. Moderate. Canopy is one of the most successful unlicensed fixed wireless products on the market. Any upgrades are bound to make it a stronger competitor. That said, competitors will be quick to note their own element, management, QoS, and authentication solutions. Continued Europe +33 (0) Or visit our Web site: 2
3 (Continued) Motorola: MOTOMESH Redline: RedMAX Management Suite Introduction Strix: Customer Momentum VCom: Voice over WiMAX Demo The launch of a dual-band WiFi card supporting 2.4 and 4.9 GHz spectrum, the WDE1000. Internal and external antenna options, along with high-power options, improve coverage and connectivity performance. Launch of RedMAX Management Suite (RMS), a WiMAX network management solution. Standard functionality includes equipment monitoring, traffic statistics, service provisioning, inventory reports, and alarm propagation. A highlight of Strix s customer momentum, including deployments in the U.S., Europe, Africa, China, Japan, Australia, India, and Southeast Asia, with outdoor nodes installed in more than 100 mesh networks. Reminder of previous solution enhancements. Demonstration of a SIP-based voice over WiMAX solution including AudioCodes (media gateway, analog terminal adapter), VCom ( gear), CableMatrix (policy decision function), and Emergent Networks (session border controller). Very positive. Devices have been a major sticking point for the deployment of 4.9 GHz networks. While it is unclear if the WDE1000 is priced right, it tackles the issue head on, supporting the larger MOTOMESH offer and smartly dealing with 4.9 GHz propagation through antenna and power options. Neutral. Network management tools are important for operating a reliable, profitable WiMAX network. Yet, where Redline was smart to signal its architecture roadmap, management tools provide limited differentiation. Neutral. Strix s announcement does nothing to improve its mesh solution, merely rehashing previously revealed product enhancements. Touting its deployments and record of innovation, however, positions Strix as an early mesh leader. Neutral. Support for voice services provides would-be WiMAX operators with an important revenue source. However, VCom and partners did nothing to suggest that their work will be productized in order to deliver a wellintegrated offer. Very high. Motorola may not claim the mesh momentum of smaller competitors, but the company s strong position in public safety alone makes the MOTOMESH product a formidable competitor. To the extent that 4.9 GHz device availability was holding up sales, Motorola had to deal with the problem. High. Whether or not it significantly differentiates Redline s offer, RMS is important for helping operators deliver carrier-grade solutions based on Redline s WiMAX kit. High. Though the WLAN mesh market is still nascent, it is also crowded with a number of vendors. In a crowded market, differentiation is key; Strix s announcement moves to set the vendor apart on a commercial as well as technological level. Moderate. Voice support gives VCom a claim to a complete WiMAX solution, which is particularly useful for fixed applications in rural or emerging markets. More broadly, WiMAX is unlikely to be more than a niche for VCom s partners, particularly since VCom itself is a small company. Moderate. Motorola is not alone in the 4.9 GHz mesh space. Introducing its own 2.4/4.9 GHz PC card, however, makes it the only vendor with an end-to-end offer. Competitors, of course, will argue that third-party 4.9 GHz devices PC card or not deliver the same functionality. Low. Improving on Redline s WiMAX solution with a network and element management solution clearly makes the vendor a stronger player. Yet, competitors will claim to provide the same functionality. Moderate. Strix s OWS product suite remains unchanged since the release of its OWS and EWS 100 products. Yet, the vendor s announcement points to market momentum as an increasingly important differentiator in a crowded market. Low. VCom s exercise does highlight the importance of voice for WiMAX operators. Beyond that, however, it is little more than an exercise pulled together by a number of smaller vendors (AudioCodes excepted) that larger WiMAX players could replicate. Europe +33 (0) Or visit our Web site: 3
4 Recommended Actions Vendor Actions Alvarion needs to consider getting its BreezeMAX solution into certification. With BreezeMAX trials and deployments underway, the lack of certification from the WiMAX Forum clearly has not hurt the product line too much. Recently, Alvarion has put an emphasis on e. However, to ensure customers that initially released BreezeMAX products will benefit from a robust WiMAX ecosystem, certification is critical. Alvarion and its competitors need to start providing details on the performance of their self-install CPE solutions. Self-installed WiMAX CPE promises to lower customer acquisition costs for would-be WiMAX operators. However, if first wall penetration and easy set up were simple matters, vendors would not need to develop specialized CPE products. To this end, vendors with self-install products (i.e., Alvarion, Airspan, Aperto, Redline, Siemens, etc.) need to advertise how well they deliver on the self-install promise. Motorola needs to build its Prizm element and subscriber management solution into a package deal with other Canopy products quickly. Package deals and attractive pricing have been critical to the success of Canopy. To ensure that Prizm is a success, it needs to become part of these packages. Motorola needs to start highlighting additional MOTOMESH wins, including those integrating its new WDE1000 PC Card. To its credit, Motorola smartly provided a WDE1000 reference from Tulsa, OK. However, as mesh specialists continue to claim dozens of wins, Motorola needs to be clear that MOTOMESH is an equally credible solution one that includes a compelling public safety device. Strix needs to move beyond momentum and innovation-based marketing and start highlighting any performance benefits delivered by its mesh products. Strix, like most of its competitors, has claimed that its mesh products can deliver best-in-class scalability and capacity. While deals and innovations may be encouraging to customers, proof that Strix can actually outperform the competition would go further in terms of new deals. VCom and its VoIP partners need to productize their voice solution as soon as possible. Work with AudioCodes, CableMatrix, and Emergent Networks proves that VCom can deliver VoIP over its WiMAX products. However, to be of value to VCom customers, the voice solution will need to be available as a complete package, saving operators the pain of replicating VCom s integration work. User Actions Wireless ISPs need to push WiMAX vendors on the development of unlicensed spectrum WiMAX gear. 5 GHz is one of the bands that the WiMAX Forum has designated for product certification. Yet, most WiMAX vendors are focusing early development on the 3.5 GHz and 2.5 GHz bands. If there s a market, vendors and the WiMAX Forum will respond. Operators need to make it clear that demand for unlicensed WiMAX gear exists. Would-be WiMAX operators should consider third-party VoIP products versus products delivered by WiMAX specialists. On the softswitching and VoIP front, there is no shortage of credible voice solutions. Solutions delivered by a smaller WiMAX specialist Airspan s AS.TONE, for example may also be credible, but they are unlikely to enjoy the R&D focus or scale efficiencies of solutions from VoIP specialists or even larger vendors with their own WiMAX and voice solutions (Nortel, Alcatel, Motorola, etc.). Would-be mesh operators need to seek details on mesh product performance in terms of scalability and density. Many mesh vendors can claim successful launches in smaller markets where traffic demands and interference are limited. Extending this success to larger markets is not ensured. Vendors need to prove that they can perform as promised no matter the market. Europe +33 (0) Or visit our Web site: 4
5 Operators need to start planning for core upgrades in tandem with their mesh and WiMAX launches. Mesh and WiMAX may help to deliver data to end users. That said, if successful, they will require fatter pipes in order to deliver data throughout the WiMAX and mesh core and QoS control out to the edge (base station). Europe +33 (0) Or visit our Web site: 5
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