Enterprise focused ISPs start to blaze the trail for WiMAX

Rethink IT, Dec, 2004

NextWeb uses equipment from Axxcelera, with roof-mounted base stations covering a three mile radius, supporting 250 subscriber units each with user rates of 25Mbps, and will migrate these to WiMAX. Two weeks ago it announced that it was upgrading its backbone using microwave radio systems from Alcatel, to cope with expanding demand.

By focusing on business rather than residential, and on SME in order to avoid the long sales cycles of the top enterprises, NextWeb now boasts ARPU of $470 per month and achieved positive cashflow a few months ahead of schedule. Scalability is key to fixed wireless advantages, says the company, which claims it can double the number of customers on its network for only 10% of variable costs.

NextWeb also offers a sub-1Mbps, SLA-less offering for small businesses. This is not its key focus and, like other providers, it says it is hard to make a business model based on such services in the developed areas, since DSL is so price competitive. But it offers the option for companies that may, in future, grow into wanting the full platform--and will step up this focus when WiMAX subscriber equipment falls to commodity prices.

Also piloting WiMAX-ready networks is Futura Technologies, which has kicked off a 60-day trial in Kansas City and its surrounding areas. It will bundle the broadband wireless offering with its FuturaVoice VoIP offering and aims for a nationwide roll-out by 2006. Its current services are available in 47 states.

Part of this analysis was contributed by our sister service Faultline, which examines the implications of the broadband triple play for operators and content providers.