Future wireless target: fixed broadband

SAN FRANCISCO—If broadband wireless technologies are going to compete effectively in the market, they must be measured against equivalent services in the wired environment and not preceding wireless technologies, according to Ali Tabassi, vice president of innovative technologies at Nextel Communications.

Speaking this morning on a panel at RHK’s Startrax 2004 conference here, Tabassi said Nextel is experimenting with numerous technologies, including WiMax and some MMDS spectrum the carrier recently acquired from WorldCom. However, instead of looking at either project as an upgrade to existing wireless services, Nextel is benchmarking itself against the wired world.

“If you looking to deliver broadband technology, you will be competing with cable and DSL,” Tabassi said.

And in order for wireless broadband to compete effectively in the $35-to-$50 range that cable and DSL services inhabit, vendors must bring costs down on their equipment. In some early economic models, Tabassi said, Nextel believes that wireless operators’ cost for delivering 1 Mb/s to the customer should be around $20.

“In order for us to deliver broadband and be in a competitive environment, we need to be able to deliver that service at a cost of $20,” he said.

Just as important is determining which services will delivered over that link. Lucent Technologies has done a fair amount of early research and determined that one of the first services people will pay for is applications based around security, said Jeff Cortley, director of mobility strategy and business development for Lucent.

“Lifestyle and concierge services are another,” he said.