Monday, February 21, 2011

Some See WiFi As Cheaper Means to Cater to Increasing Bandwidth Demand

Monday February 21, 2011
By TEE LIN SAY
linsay@thestar.com.my


PETALING JAYA: Cellular operators are considering deploying more WiFi technology as a cost-efficient means to cater to increasing bandwidth demands on their networks, according to some industry experts.

“Celcos are projecting a huge increase in data usage coming from the growing use by consumers of devices such as Apple's iPhone and iPad and other tablet-type devices,” one technology specialist from a leading celco said.

WiFi was being touted by some telecommunications vendors as a cheaper means to cater to the increasing demand, he added.


»WiFi technology is being examined by some telcos, including Maxis, to serve as offload to increasing data traffic demand in localised hotspots« MAXIS COMMUNICATIONS’ MARK DIOGUARDI
The increased use of WiFi by cellular players was also featured at the recent Mobile World Congress 2011 in Barcelona.

At the conference, Wang Jianzhou, chairman of China Mobile Communications Corp, the world's largest mobile operator by subscribers, outlined plans to deploy 1 million Wi-Fi access points in high-density areas over the next three years.

US-based wireless technology vendor Ruckus Wireless won an award at the conference for one of its products as the “Best Mobile Broadband Technology.”

According to the company, the product Ruckus Wireless Services Gateway enables mobile device subscribers to move more easily between cellular and Wi-Fi connections for data and even voice.

When asked to comment on this, Maxis Communications Bhd's head of network and technology Mark Dioguardi said: “WiFi technology is being examined by some telcos, including Maxis, to serve as offload to increasing data traffic demand in localised hotspots. However, depending on the network usage and customer profile, WiFi (due to small coverage and limited end-user device transmit power) may not able to offload data traffic from all wireless broadband customers, for example indoor residential wireless broadband users.

“WiFi is more suitable for localised hotspots and nomadic users, and not for wide-area offload.”

He said solutions today existed for voice calls to move from a 3G network to WiFi seamlessly.

“This will involve solutions from the network, end-user device and client software,” he said.

“However, WiFi coverage is small, spotty and non-contiguous. This will not provide a good experience for high-mobility users. Also, the voice quality on WiFi will be uncertain due to the best effort nature of WiFi.”

Meanwhile, OSK Research telecommunications analyst Jeffrey Tan holds the view that the move to WiFi is a slow but sure trend.

“There appears to be a gradual move towards that direction. The 3G backhaul fiber investments are on the rise and WiFi networks or femtocells offer attractive propositions, are cheaper to roll out and less strenuous compared with building up network capacity,” he said.

“It could be more cost effective for the telco players over the longer term given that the bulk of data traffic demand from small- and big-screen devices are Internet related.

“Having more WiFi hotspots would benefit the celcos by providing ubiquitous coverage and the ability to mitigate the congestion on mobile networks. Consumers get seamless connectivity and better quality bandwidth, while the celcos enjoy cost savings.”

Service providers who currently provide WiFi hotspots include Green Packet Bhd and Palette Multimedia Bhd.

Green Packet group managing director Puan Chan Cheong said demand for mobile data presently exceeded the network infrastructure.

“People can't get enough of bandwidth. We need multiple infrastructures to give users a richer experience. WiFi is part of our strategy as it captures some of the share of the mobile broadband segment,” said Puan.

Green Packet subsidiary Packet One Networks (Malaysia) Sdn Bhd (P1) introduced the WiFi personal hotspot unit in December last year.

Green Packet has installed some 1,500 hotspots in Kuala Lumpur while Palatte has installed a few hundred hotspots and some 20 hotzones in the Klang Valley.

Palette chairman Eg Kah Yee said Apple's iPhones and other smart phones come with WiFi built-in, making the hand-held devices access of Internet possible.

“All these applications consume very high 3G bandwidth. The increasing demand of bandwidth is putting a heavy burden on the telcos and a tight squeeze on voice.

“As such, telcos are back to deploy more WiFi hotspots to offload the 3G to WiFi as soon as the users enter into a hotspot area,” said Eg.

He said Palette had pioneered and developed the 3G offload to WiFi technology and had started to deliver such products.

However, Maxis' Dioguardi added that the WiFi rollout cost might not necessarily be cheap.

“There will be high investment needed in transmission backhaul to build a WiFi network with similar coverage as a 3G network and with sufficient capacity. Hence, WiFi rollout is not necessarily cheap. WiFi also uses unlicensed frequencies and there could be interference issues with other WiFi networks or other devices that use the same unlicensed frequency,” he said.

According to Dioguardi, there were other solutions in the core and radio network to manage the growth in the demand of data traffic.

“In summary, WiFi can be a solution in localised public data hotspots or within customers' homes where fixed broadband exists. But in the short to medium term, it will not provide sufficient or significant data offload for a pan-Malaysian wireless broadband network,” he said.

http://biz.thestar.com.my/news/story.asp?file=/2011/2/21/business/8105423

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