By Art Reisman
Last night I had a dream. A dream where I was free from relying on my Cable operator for my Internet Service. After all, the latest wireless technology can be used to beam an Internet signal into your house at speeds approaching 600 Megabits right?
My sources tell me some wireless operators are planning to compete head to head with entrenched cable operators. This new tactic is a bold experiment considering most legacy WISP operators normally offer service on the outskirts of town; areas where traditional Cable and DSL service is spotty or non-existent. Going at the throat of the entrenched cable operators in the urban corridor , beaming Internet into homes with service that compete on price and speed is a bold undertaking. Is it possible? Let’s look at some of the obstacles and some of the advantages.
In the wireless model, a provider lights up a fixed tower with Internet service and beams a signal from the tower into each home it services.
- Unlike cable where there is a fixed physical wire to each home , the wireless operator relies on a line of sight signal from tower to home. The tower can have as many as four transmitters each capable of 600 megabits The kicker is, to turn a profit, you have to share the 600 megabits from each transmitter among as many users as possible. Each user only gets a fraction of the bandwidth. For example, to make the business case work you will need perhaps 100 users (homes ) on one transmitter, that breaks down to 6 megabits per customer.
- Each tower will need a physical connection back to a tier one provider such as Level 3. This will be a cost duplicated at each tower. A cable operator has a more concentrated NOC and requires far fewer links connections to their Tier one connection.
- Radio Interference is a problem so the tower may not be able to perform consistently at 600 megabits, when there is interference speeds are backed down
- Cable operators can put 100 megabits or more down each wire direct to the customer home so if you get into a bandwidth speed war on the last mile connection, the wireless is still not competitive.
- Towers in this speed range must be line of sight to the home, so the towers must be high enough to clear all trees and buildings , this creates logistical problems on putting in one tower for every 200 homes.
On the flip side I would gladly welcome a solid 6 megabit feed from a local wireless provider.
Speed is not everything , as long as it is adequate for basic services, facebook, e-mail etc. Where a wireless operator can excel and win over customers are in the following areas.
- good clean honest service
- no back door price hikes
- local support, and not that impersonal off shore call center service
- customers tend to appreciate locally owned companies