Tech Hardware Supply Chain - Gazhoo

Bhavin Shah
(852) 2800-8538
bhavin.a.shah@jpmorgan.com
Asia Pacific Equity Research
20 April 2009
Figure 30: How WiMAX works
Source: WiMAXForum.
A WiMAX tower station can connect directly to the internet using a high-bandwidth,
wired connection (for example, a T3 line). It can also connect to another WiMAX
tower using a line-of-sight microwave link. This connection to a second tower, along
with the ability of a single tower to cover up to 3,000 square miles, will give
WiMAX access to remote rural areas.
IEEE 802.16 specifications
• Range: 2 km to 50 km radius from base station, depending on sub specifications.
• Speed: 72 megabits per second.
• Line-of-sight: not needed between user and base station.
• Frequency bands: Mobile WiMAX, based on IEEE 802.16e-2005, initially
operates in the 2.3 GHz, 2.5 GHz, 3.3 GHz, 3.4-3.8 GHz spectrum bands.
Support for additional bands should be added on the basis of market demand and
new spectrum allocations.
Benefits of WiMAX
• Higher bandwidth and greater range compared to WiFi: WiFi range is limited to
50 meters, while WiMAX can reach 50 kms.
• Cost-effective solution for reaching rural areas: One area of agreement amongst
market participants is the ability of WiMAX to help increase penetration in areas
where laying of copper/fiber is costlier and/or a difficult proposition owing to the
terrain. We believe WiMAX will be an effective solution for being operational as
a non-line of sight technology and with a reach of 50 kms.
• CPE costs could fall with movement from outdoor to indoors: Market participants
expect indoor Customer Premises Equipment (CPE) to cost less than outdoor
CPE, which is being deployed. This scaling down could be as much as four times
less than the price of an outdoor CPE—about US$200-300.
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