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Wireless Broadband Modems

8. Business Background for Wireless Internet Access
Typically the wireless operator does not offer Internet service directly but partners with an Internet service provider (ISP) with an existing customer base and the necessary data-networking skills. Some larger ISPs even provide service using telephone access, ISDN, cable modems over wired CATV plant, and service over wireless. One result of this is that ISPs need cable-modem systems that work for both cable and wireless; another is that telephone return systems usually use the ISPs' existing phone-modem banks.

Technologies such as asymmetric digital subscriber line (ADSL), T1, or wired cable may require a larger capital investment and time for construction. As a result, some CATV or telephone-based ISPs exercise a deliberate strategy of test marketing service using wireless. Once the customer response is known, it is possible to make a business case for longer-term investment to build out the coaxial cable for higher-service penetration.

The larger wireless-cable operators are finding high-speed Internet service an aid to competition with the local CATV companies as well as businesses in their own right. Internet service on one or two wireless channels is compatible with offering both analog and digital video on adjacent channels. There is no loss of capacity or interference.

The following are several reasons why businesses, libraries, hotels, and schools are the first marketing targets:

  • They usually pay a premium price, reflecting a greater need for speed.
  • It is easier to locate an antenna on the roof than on most homes.
  • They require less support, as they have their own management information system (MIS) people.
  • The service organization has time to be trained before handling large numbers of customers.

In addition, larger businesses may prefer wireless for Internet access. They may not wish to pay for an actual T1 connection to the Internet even though they may have T1 (1.544 Mbps) local digital facilities installed for telephone service. This initial business focus drives the following two requirements:

  1. the need for a modem that serves multiple users
  2. The ISP must use some form of technology to preserve performance for businesses at the same time as adding residential service. One technique is to assign two subchannels to a few businesses and one subchannel to a larger number of residential users.

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