Everything's coming up broadband

A 10-member vendor panel at Shorecliff Communications' Broadband Wireless World Forum earlier this year told it all: There are about as many manufacturers developing broadband wireless technology platforms as there are spectrum bands available to carry the service.

The broadband wireless opportunity, in its various technological forms and frequency ranges, is attracting vendors new and old. Large suppliers that already have access to data switches and systems integration capabilities are emerging as the go-to guys for big, comprehensive carrier contracts.

Meanwhile, long-time suppliers of microwave and millimeter wave radio systems-platforms traditionally used for backhaul and interconnect applications-are adapting their platforms for last-mile duty, possibly with an eye toward partnering with their bigger brethren.

And perhaps most significant are the start-ups: Broadband wireless is spawning new companies faster than anyone imagined. All this development activity is lending a bit of technological confusion to the sector, but it is also proving that broadband wireless is one of the hottest places to play.

The established players In the same way that creating cellular and PCS networks from the ground up was a monumental effort for carriers and vendors, building broadband wireless systems is no easy task. That's why the largest vendors-particularly those with systems integration capabilities-are being named the primary contractors by broadband wireless carriers, even if they themselves don't make all the equipment necessary to get the job done.

For some of those existing suppliers, entry into broadband wireless marks the culmination of software, radio and data switching technologies that have been acquired or developed over time. "This industry is benefitting from years of technology research in a variety of areas," says Larry Schwerin, general manager for Lucent's wireless broadband networks division. "When applied locally, these technologies form the basis of a reliable, cost-efficient broadband wireless network infrastructure."

For the biggest of the big, the broadband wireless opportunity was so great that it led to acquisitions. Last year, Nortel Networks acquired Broadband Networks Inc. so that it could roll the radio developments of that smaller vendor into its end-to-end system.

"Before, we really focused on pieces and said, 'We can give you a spigot here and a spigot there,'" says Rashid Skaf, vice president and general manager of Nortel's Broadband Wireless Access division, who came to Nortel with the BNI acquisition. "Now we can integrate everything into one network."

Nortel's Reunion system is currently available in a point-to-multipoint, frequency division duplexed (FDD) platform. Components of the integrated network include Nortel's existing core network equipment, radio gear brought from BNI and asynchronous transfer mode switches brought from Nortel's Bay Networks acquisition. Nortel is currently developing a time division duplexed (TDD) version of the system, but Skaf says the current approach is sufficient for carriers early on because it is optimized for delivering service to businesses with broader bandwidth needs. "The market is such that we're still in the big business pipe as people are building out the networks," he says. "Later they can plug in cards for the smaller pipes."

Lucent Technologies is in a similar situation in its development. Last year, the vendor established a broadband wireless division out of a Silicon Valley-based component division that it had acquired from Hewlett-Packard Co. Now, Lucent has struck an OEM agreement for radio equipment with Netro, a broadband wireless industry newcomer, so that it can also deliver end-to-end systems. Lucent recently began shipping Netro's AirStar product under the Lucent label OnDemand.

Other established vendors are actively pursuing the broadband wireless opportunity. Early on, Alcatel had linked with Newbridge Networks to approach some of the carrier hopefuls, but that relationship has since fizzled. Alcatel is now pursuing partnerships with other switch providers, and although it may not have the same end-to-end capabilities as the likes of Lucent and Nortel, Alcatel does have a long-standing radio development effort and the ability to provide systems integration services to its customers.

"We believe systems integration is going to be one of the key things-especially for the LMDS players," says Dave Kimzey, vice president and general manager for radio products at Alcatel. "That's where the biggest opportunity is long-term, but our product is going to be applicable in all frequency bands."

The broadband wireless market is creating new opportunities for both radio equipment suppliers and data switch vendors. Like Newbridge, Cisco Systems is pursuing opportunities in conjunction with radio suppliers, including Bosch Telecom.

Where different vendors are focusing their efforts-and, indeed, what equipment they actually possess to answer carriers' needs-is often difficult to determine because all vendors would like to be perceived as end-to-end suppliers. But judging from some of the contracts that have emerged from operational carriers and some early local multipoint distribution service entrants, most established vendors will be able to develop some kind of presence in broadband wireless.

The supporting cast While vendors with multiple interests in and outside of wireless scurry to publicize their broadband wireless products, several equipment suppliers focused on only the radio equipment business have started to come forward with developed systems.

Companies with extensive RF experience tend to consider their experience in both product development and systems integration to be their leg up on the wave of incoming competitors.

"The new entrants in this business may not understand the complexity of operating a shared network," said Andrew Lamothe, senior director of systems engineering for Hughes Network Systems, which supports broadband wireless applications with its AIReach line of products. Other established radio manufacturers pursuing broadband wireless include Harris, P-Com, Wireless Inc. and California Microwave.

The broadband wireless phenomenon has also given rise to a crop of industry newcomers. Some of them are pursuing carriers and license holders directly, but many are likely hoping to end up as Netro and BNI have: in the company of larger vendors.

Suppliers such as Wavespan, Gig-anet, Triton Network Systems, Ensemble Communications, Spike Technologies and Wavtrace are all creating some portion of the system and trying to either garner OEM contracts or sell their gear directly to carriers.

Wavespan, for example, is seeking relationships with other companies to get systems to the market. "Our plan is to sell our product through OEM distributors and very large systems integrators," says Mike Kazban, vice president of marketing at Wavespan.

Likewise, Giganet-a member company of Israel's Rad Group-is primarily seeking OEM partnerships through which it can get its radio systems into carriers' networks. Giganet's radios feature built-in management functionality that can be easily integrated into a larger management system.

"We understand that everything is part of a larger picture," says Inon Beracha, R&D vice president at Giganet. "Management is a critical part of it."

Giganet's system is point-to-point, which Beracha sees as having a significant place in broadband wireless networks where dedicated, high-bandwidth links are required and fiber is non-existent. "The U.S. is a very good market," Beracha says. "You don't really have the fiber running in the right places."

But some upstart vendors are taking the opposite tack and targeting their efforts at international opportunities-a probable safe bet, given the amount of spectrum available internationally for these applications.

"When we look at the markets, the majority of opportunity lies overseas right now," says Jeff Keith, director of marketing at Spike, which manufactures equipment for the 1 to 10 GHz frequency band.

The growing number of vendors competing for the business of a finite number of network operators could lend some confusion to the developing broadband wireless market. Already the differences between certain technologies and network designs has created a schism of sorts and likely will spark continued debate (see sidebar on page 36). But that level of competition also points to a healthy market, which means that the carriers that choose to enter it will have the benefit of many suppliers vying for their attention.