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Time to Innovate on Mobile Broadband Devices

By Jeff Orr, Senior Analyst - Consumer Electronics, Maravedis

Applications and the devices that host them are the focal point for the emergence of mobile broadband wireless networks. Consensus has future 4G devices in the 2012 timeframe utilizing IP networks with OFDM modulation and speeds of 100 Mbps and higher under mobile conditions. But what will the first mobile broadband devices look like?  Read More

The technologies available today for early mobile broadband networks include those in the 3G class and those in the WiMAX class. The 3G class includes technologies such as EV-DO and HSPA. As with most technology comparisons, each of these technical standards has its staunch supporters for equipment and services.

Those promoting EV-DO and HSPA will point to the existence of multiple, regional networks based on the technology and the availability of service. What hasn’t been as straightforward with the 3G devices is the innovation and departure from the typical PC card and cellular phone products of 2G and 2.5G. 3G was touted as ushering in a new genre of devices and applications. The devices that eventually materialized were – unsurprisingly – PC cards for the data-centric users and handsets for the “in your pocket” mobile voice crowd. Consumer electronics manufacturers, who were expected to be the beneficiaries of the 3G gift, were presented with inflated Intellectual Property Rights (IPR) burdens and radios bundled with underpowered applications processors.

In contrast, WiMAX supporters say that their protocol will overcome the innovation gap by delivering an IP network at a fraction of the cost for a 3G network, using the same core technologies that will be in future 4G networks. The catch is that the only commercial Mobile WiMAX network today is in Seoul, South Korea. Over a hundred operators have announced tests, trials, and availability dates, but the demand for anytime, anywhere access cannot be met today. Maravedis estimates that the first wave of regional and national networks using Mobile WiMAX will emerge in 2009.

This hasn’t stopped device manufacturers from announcing plans for WiMAX devices. Operators like KT are already offering a catalog of WiMAX solutions via USB and PC cards for the PC crowd, in addition to embedded notebook PCs, a PDA, and an ultra-mobile PC. A positive sign for the WiMAX ecosystem is that claims of early devices were stated as PC-based and have been delivered accordingly. Some of the more interesting announcements have been for devices that incorporate WiMAX and 3G protocols into the same package – 3G as the primary voice network based on broad service area coverage and WiMAX for high-performance packet data applications. Looking at broader applications in a regional or national coverage area, one company has already announced their vehicle information and entertainment system, which includes a WiMAX radio for broadband WAN coverage.

Development using 3G has not missed the mark entirely. A recent announcement by rental car company Avis offers in-car Wi-Fi access in several of their metropolitan U.S. markets. Mobile access is fed to the car by an EV-DO router that propagates in the vehicle using a Wi-Fi access point. The announcement suggests that the mobile workforce is looking for their Internet “fix” in places outside of the office, home, and traditional Wi-Fi hotspots. Mobile operators should take note.

As mobile broadband is integrated into more consumer electronics devices, operators have an opportunity to introduce new service plans. For example, a family plan is feasible to manage multiple devices within a single subscriber account. More flexible subscription plans for devices that do not require always-on connectivity, such as digital cameras and MP3 audio players, are also possible. The latter offering could be similar to the hourly and daily plans available in Wi-Fi hotspots.

While we don’t yet know what other device form-factors will become popular with consumers, devices do and will continue to drive the market for mobile broadband. More information on devices, manufacturer plans, and the emergence of WiMAX in consumer electronics products can be found in the new Maravedis report, “Opportunities and risks for embedding WiMAX into Consumer Electronics”.

Jeff Orr, is our Senior Analyst is one of high-tech's leading marketing minds and an expert at product marketing and management.  Previously, Orr was the director of marketing and first employee of renowned WiMAX Forum industry trade association.  He also served as a board member for the group from 2003 to 2005.  Orr began his wireless career at industry pioneer, Proxim, where he held senior marketing management roles.  Before his seven-year tenure with Proxim, Orr spent 10 years at Diamond Multimedia where he held multiple senior management positions and received more than 200 product-related awards. In total, Orr has managed products generating more than $1 billion in revenue.  A frequent speaker at industry trade conferences and seminars, Orr has been a featured guest on television and radio talk shows. Born and raised in Silicon Valley, Orr majored in Aerospace and Aeronautical Engineering at Embry-Riddle Aeronautical University and currently resides with his wife and family in Oregon.