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Business News & Technology News > Jul 2008
 
 

What Makes WiMAX So Different in Emerging Markets

By: Ozgur Aytar, Pyramid Research
(Business News & Technology News, 4 Jul 2008)


It's not about the data speed. Sure, it too is important, but operators have learned that differentiation on this front can easily backfire. It did in Sri Lanka, for example, when Dialog Broadband Networks (DBN) rolled out its WiMAX-based Internet access service called BroadNet emphasizing that the network was faster than the incumbent's. Before too long it faced customers complaining about not experiencing the advertised speeds, and DBN had to retract its claims. If network performance doesn't do it, what is there that can differentiate WiMAX operators and give them a leg up on competitors?

Pyramid Research's survey of WiMAX operators found that some WiMAX operators have been at a loss in identifying their key strengths. Others, however, have figured out after a few iterations what appeals to their various target customer segments—for the time being, at least.

Although earlier promotions focused on network performance, most of the operators surveyed have had to move away from that when customers complained about not receiving the advertised data speeds. Most operators now focus primarily on the following as key differentiators:

- Network coverage, quality and security: Limited competition among broadband providers in emerging markets has resulted in inadeaquate network coverage and quality of service. With WiMAX, operators could target specific areas where there is strong demand, deploy a network from scratch within a few months and easily attract customers that don't have other broadband options. Moreover, the promise of a reliable, secure service at a competitive price can go a long way in these markets. In the same vein, operators are finding that they can differentiate themselves with a high-quality customer care organization.

- Instant gratification through speed of connectivity, fast setup and plug-and-play: In emerging markets, this is a key proposition. In most of them, the waiting lists for Internet access tend to be extremely long. WiMAX operators gain customer mindshare by emphasizing the ease and speed of connectivity with their networks. In Chile, Telmex promises to install and set up the service in five business days or less. In Russia, Enforta claims that many of its customers select WiMAX because it can install the service in no more than four days. Bulgarian Max Telecom's service can reportedly be self-installed in as little as 30 minutes.

- Portable broadband access: This is essentially the ability to access the Internet from various locations using the same broadband account, something that DSL cannot offer. Operators report encouraging responses to promotions built around portability, particularly among mobile young professionals.

- Higher download limits and symmetrical data speeds: Service plans for broadband access—whether via DSL or WiMAX—generally include a cap on downloading. It appears that most WiMAX operators offer higher download limits than their DSL competitors. In addition, WiMAX provides symmetrical data speeds (uplink and downlink throughput are the same), whereas DSL typically provides lower uplink speeds.

There is no doubt that operators will continue to revamp their messaging as they gain more commercial experience, interact with their customers and roll out new services and products. The key lesson learned to date, however, is to under-promise and overdeliver.

Click here for more information on Pyramid Research

 
 
 
 
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