3G/ WiMAX comparison

Publié le par Jean Arnal

According to Pyramid Research, WiMAX spectrum is far cheaper than 3G spectrum. Numbers can witness of the gap: in the UK, a 30 MHz national 3G license had cost €7.5bn, while a regional WiMAX license for the London area has cost €2.5m. When comparing the cost per MHz per population, the ratio is about 500 times. The main evidence is that 3G spectrum has been overpriced, but that WiMAX spectrum is generally undervalued and for many reasons: a WiMAX license is only regional (a national coverage is in fact the sum of regional licenses); mobile operators are not (yet) ready to enter another expensive auction (current debt levels and capex constraints) and did not put pressure on prices; up to now, WiMAX licenses were granted in the 3.5GHz band, with the new 2.5GHz and 2.3GHz bands, WiMAX will need less infrastructure, and will increasingly attract traditional mobile operators (remember Sprint Nextel strategy). In conclusion, WiMAX license prices would go up, but stay far behind 3G license costs.

Publié dans Top stories

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