Network indecision

WorldCom, Sprint still weighing fixed wireless equipment vendor options

For Sprint and WorldCom, choosing equipment vendors that will take fixed broadband wireless networks beyond mere concept could be challenging.

While Sprint has worked with Hybrid Networks to deploy in several markets, neither carrier is ready to commit to just one or two vendors for their network rollouts. Last week, it looked as if WorldCom might settle on at least one vendor, as Vyyo announced it would be working with the carrier on its network. But the carrier would not deny or confirm the news, leaving industry observers wondering about WorldCom's next move.

After announcing that WorldCom would use its wireless hubs and modems when it deploys its nationwide broadband wireless access services, Vyyo's stock price increased 33%. Though this is not the first time Vyyo has worked with WorldCom - in April, Vyyo worked with ADC Telecommunications on WorldCom's trial in Boston - it looked to be an important announcement coming from one of the largest multichannel multipoint distribution service license holders.

"This is a great endorsement of our technology," said Arnon Kohavi, senior vice president of strategic relations for Vyyo. "We hope this will help us gain traction with other big carriers."

WorldCom refused to comment about this announcement, sending a signal that the relationship with Vyyo is not yet set in stone. Because Vyyo already established a working relationship with ADC, it might be that WorldCom would choose ADC over other options if Vyyo does become the carrier's hub and modem vendor. Despite any indecision, Vyyo proceeded with its announcement likely with the notion that its stock would soar, according to analysts.

Vyyo is conducting laboratory trials with Sprint and hopes its potential relationship with WorldCom will help it gain additional business. Sprint has been testing equipment from Vyyo and other vendors, said a spokesman with Sprint Broadband Direct. Although Sprint has worked with Hybrid to launch 11 markets, the carrier does not plan to rely on just one supplier.

"Currently, we have plans to continue with Hybrid, but it is fair to say we always are looking at technology and considering other options," the spokesman said.

With WorldCom taking a similar approach, vendors are left in limbo, said James Mendelson, an analyst with The Strategis Group. "So far, there is no full-scale endorsement, and both [WorldCom and Sprint] seem to be weighing all their options," Mendelson said.

Specifically, the carriers must evaluate the different types of solutions and how any technology changes might affect cost and time of deployment. It is expected, however, that the industry will move from the standard supercell architecture to a microcell or multicell architecture to address demand for increased capacity, Mendelson said. Essentially, a microcell or multicell architecture would be more appropriate for a more densely populated area.

Both Hybrid and Vyyo are focusing on this progression.

"Supercell is the least costly way to get to market," said Michael Greenbaum, president and CEO of Hybrid. "Carriers can build out to microcell and macrocell architectures as the markets show that the interest is there.

"Some people want to embrace the microcell system approach, but they are dealing with systems in theory, and there [are not] any that work yet. We have the curse of having systems out there with live customers on them, and we have them working."

Hybrid currently is unable to supply a microcell solution but will in the near future, Greenbaum said.

Vyyo claims it can support both supercell and multicell architectures today.

"Our solution supports both supercell and multicell architectures, and our competitor only does supercell," Kohavi said.

Meanwhile, companies such as Hybrid and Vyyo are at the mercy of the carriers seeking solutions that will be a perfect fit today and in the future.

"If both WorldCom and Sprint could say something regarding the market now, they might say that no one has cracked the scalability issue," Greenbaum said. "As long as they can, they will keep pushing the industry to achieve a standard multisupplier position. The only system to be standard will be the one that works in the field."