Long abstract

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A set of emerging wireless technologies is posed to greatly increase the range of high-speed wireless broadband. The technologies behind WiMAX should allow for wireless data speeds of up to 40 Mbit/s over a distance of 10 kilometres using relatively inexpensive equipment. These same technologies could also offer faster data transfers to mobile devices than is possible over current third-generation mobile networks under  certain  conditions. WiMAX-certified  equipment  should  become  available  in  late 2005  and  should significantly increase the speed and reach of wireless data networks. 

The development and rollout of WiMAX introduces several regulatory and policy issues highlighted in this paper. The paper begins with a brief overview of the technologies behind WiMAX and its market positioning  relative  to  broadband  and  3G  mobile  networks.  Next,  the  paper  examines  the  potentially significant  policy  and  regulatory  issues  for  governments  and  regulators.  Finally,  the  appendix  presents country  experiences  and  details  the  status  of WiMAX  across the  OECD. The key  findings  of  the  paper include: 

1.  The success of WiMAX partially will depend on the availability of spectrum in OECD markets. Initial equipment will work in one of three main frequency ranges, 2.5, 3.5 and 5 GHz. Existing allocations  of  spectrum  should  be  examined  to  see  where  space  could  be  available  for  new broadband wireless technologies. Spectrum allocations should be technologically neutral.

2.  The success of WiMAX could be hindered by mobility restrictions applied to certain spectrum bands.  While  the  relationship  between  3G,  WLAN  and  WiMAX  is  likely  complementary, competition  and  crossover  among  the  technologies  will  be  greatest  when connectivity  is  not limited to pedestrian speeds.    

3.  Port blocking and traffic structuring on new WiMAX networks could harm stand-alone voice and video operators who might compete with services provided by the WiMAX operator. The role (if any)  of  the  regulator  is  not  yet  clear  but  will  likely  become  important  if  anti-competitive complaints arise.  

4.  WiMAX equipment could play a key role in providing long-range fixed-wireless connectivity in rural and remote areas as well as mobile connectivity over shorter distances.  

5.  Regulators should ensure that WiMAX operators can interconnect to both Internet exchanges and the  PSTN  subject  to  the  national  laws  and  regulations  governing  interconnection  to  public telecommunications networks. Interconnection should be available on the same terms offered to existing operators. 

6.  WiMAX equipment could raise privacy and security concerns by enabling wireless surveillance over  long  distances  without  consent.  Other  safety  concerns  include  the  use  of  streaming  video content in vehicles that could distract drivers and the safe use of radio transmitting devices near children.

7.  Long-range WiMAX may expand the reach of current broadband networks to remote areas and decrease  the  need  for  wire-line  subsidies.  Regulators  may  need  to  re-examine  how  universal service funds are allocated and what role wireless broadband technologies will play. 

WiMAX may prove to be a disruptive technology for the telecommunication sector but careful policy can ensure that the disruption creates the maximum benefit possible in the market.