Slide 1:WiMAX Opportunities and Challenges in Macedonian Market Workshop on “WiMAX - a New Broadband Wireless Access Solution” Skopje, Republic of Macedonia 13-15 February 2008 borislav.popovski@neotel.com.mk tedi.conevski@neotel.com.mk


Is WiMAX disrupting technology? :Is WiMAX disrupting technology? Technology (broad range of spectrum 2.3 GHz, 2.5GHz, 3.5GHz, highly scalable multi service platform to deliver Internet, VoIP, involving MIMO,AAS Business (new business models) open type against walled garden models Operator (newcomers, fixline, mobile operators, cable) Service (new = embedded systems, gaming, open platform, …)


Question is: not if, but when? :Question is: not if, but when? 2008 or 2009 the year of WiMAX Global scale – multi-Billion investments: Chipmakers - INTEL, Sequans, Beecem, Runcom, TI, Motorola, Fujitsu Operators - Sprint Xohm, Clearwire, Softbank, NTT Docomo, KDDI, Europe & Russia Google, Apple are next? Octob. 2007 ITU decision - Wimax an IMT 2000 technology Wimax ecosystem (chips, devices, infrastr.)


WiMAX in Macedonia :WiMAX in Macedonia NEOTEL – request for WiMAX freq. for test in Macedonia (2004), a year and more ahead from others (among the first in SEE) Licenses awarded in mid 2007- encountering significant delay being almost last in SEE and Balkans. Immediate reaction from incumbent Maktel operator – drastic reduction of ADSL prices (over 50%)


Technological features and advantages :Technological features and advantages NLOS OFDMA (AAS, MIMO) Self Install CPEs QoS Nomad, Portable and Mobile deployment Flexible channal bandwidth Highly Efficient Spectrum Utilization All-IP core network


High efficiency :High efficiency “The Business of WiMAX” by Deepak Pareek, John Wiley and Sons 2006


Equipment suppliers :Equipment suppliers Alcatel-Lucent, Nortel, Motorola, Samsung, Nokia-Siemens, Alvarion, Cisco-Navini, Telsima, RedLine, Airspan, Proxim, SR Telecom, WiNetworks, Axxcelera, Aperto, Hulu, Wavesat and much more Which vendor will You choose ?


WiMAX – CAPEX components :WiMAX – CAPEX components Customer Premises Equipment –CPE (Terminals, Installation costs) Base Station Infrastructure (WiMAX equip.,backhaul, civil works, site) Edge, Core, and Central Office Equip. (ADMs, Traffic aggregation,Network Management, VoIP Server )


WiMAX – Applications :Metro Area Networks High-Speed Internet (WDSL) Cellular Backhaul Clustered Wi-Fi Hotspot Wirelles VoIP Video-on-Demand, Video surveillance Online Gaming, Multimedia, IPTV WiMAX – Applications


Business case MK :Business case MK About 5% Internet Broadband Penetration in MK Potential market (existing number of ADSL - 50k, cable - 50% of households, mobile operators GPRS, EDGE, 3G comming) Need for Backbone and Backhaul network


Business case MK :Government support needed for WiMAX success in MK (example Taiwan National Strategy for WiMAX, sector to be worth over $4B by 2012) Possible impacts on ICT, media, education and overall economy of MK Is it possible MK to become wimax country? Business case MK


MACEDONIA – Emerging Market :MACEDONIA – Emerging Market Lower revenue (ARPU) for Broadband services Fewer customers can afford to purchase CPE Higher % of bad debths means higher OPEX Lower % of households own PC Negative aspects


MACEDONIA – Emerging Market :Limited wireline competion Lower labor rates Market has potential to rise, but depends on economy Positive aspects MACEDONIA – Emerging Market


WiMAX challenges in MK :WiMAX challenges in MK It is race against time Infrastructure placement Backbone network, build or rent? How to minimize equipment cost? The choice of equipment – is it the right decision? Can economy afford more broadband services?


WiMAX challenges in MK :Is there positive impact from State Telecom Regulators? Is there too much competition? Awaiting for WiMAX mobile devices and more applications WiMAX challenges in MK


WiMAX – SWOT Analysis :WiMAX – SWOT Analysis


WiMAX – SWOT Analysis :WiMAX – SWOT Analysis


WiMAX Conclusion :Technologically – a lot of promise In short term – could not replace existing technologies Obvious cost advantage in Rural Areas WiMAX is well suited for emerging markets WiMAX Conclusion


WiMAX Conclusion :WiMAX is open and cheap concept Momentum for WiMAX has come in MK WiMAX Conclusion


Slide 21:THANK YOU FOR YOUR ATTENTION ! http://www.neotel.com.mk