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Looking back at the progression of wireless, it’s hard to believe how far we’ve come since the cell phone of 20 years ago. It was 28 ounces (compared to the 5.5 ounce Blackberry Storm), cost a whopping $2,500 and had just one hour of battery life. These days we have iPhones and BlackBerrys more powerful than any computer that was on the market at that time. I personally feel privileged to be alive at this amazing time of progress.
When trying to understand this progress, one needs to look at the disruptive technologies that have paved the way for innovation; technologies that have turned industries on their heads. In every industry, there are pioneers who saw new ways for technology to improve people lives. The iPod changed the way most people consume music. Google changed the way we search for information. The wireless industry is due for a revolution and waiting for its pioneer.
This is where WiMAX comes in. WiMAX is a simple technology that changes the playing field in the wireless industry. I was reading an interesting article on The Motley Fool which takes a look at the impact WiMAX may have on the industry. From the article:
With WiMAX, consumers will be empowered. The technology takes the things we like about wireless and removes the things we hate. This simplicity is what businesses and consumers are looking for, the technological progress without all the strings and complications. But is it disruptive? According to The Motley Fool, the answer is yes.
How do you think WiMAX will disrupt the market?
One Comment
A technology is not in itself disruptive, it is the business model it is used within that is disruptive. Towerstream has a business model that has lower costs for an equivalent service to fixed line services and is therefore disruptive. The question is what business model using mobile WiMAX can be disruptive?
LTE and WiMAX are converging technically, if not actually, and therefore a WiMAX business model cannot compete purely on a lower technology cost base. However, the low cost airlines compete successfully while using the same technologies as the main airlines by having a different business model and reducing costs elsewhere, so a mobile WiMAX operator could do something similar. It has to be done in a way that is highly unnattractive for the incumbent operators to copy. It also, like the airlines, has to be able to start small, without national coverage.
There is also the possibility of competing elsewhere in the value chain, such as distribution or in the services provided. What services of value to consumers would an incumbent operator actively avoid? There are several that spring to mind.