Mobile applications
Some cellular companies are evaluating WiMAX as a means of increasing bandwidth for a variety of data-intensive applications; indeed, Sprint Nextel has announced in mid-2006 that it will be investing about US$ 3 billion in a WiMAX technology buildout over the next few years.
In line with these possible applications is the technology's ability to serve as a high bandwidth "backhaul" for Internet or cellular phone traffic from remote areas back to an internet backbone. Although the cost-effectiveness of WiMAX in a remote application will be higher, it is not limited to such applications, and may be an answer to reducing the cost of T1/E1 backhaul as well. Given the limited wired infrastructure in some developing countries, the costs to install a WiMAX station in conjunction with an existing cellular tower or even as a solitary hub are likely to be small in comparison to developing a wired solution. Areas of low population density and flat terrain are particularly suited to WiMAX and its range. For countries that have skipped wired infrastructure as a result of inhibitive costs and unsympathetic geography, WiMAX can enhance wireless infrastructure in an inexpensive, decentralized, deployment-friendly and effective manner.
Technical info
WiMAX is a term coined to describe standard, interoperable implementations of IEEE 802.16 wireless networks, in a rather similar way to Wi-Fi being interoperable implementations of the IEEE 802.11 Wireless LAN standard. However, WiMAX is very different from Wi-Fi in the way it works.
MAC layer
In Wi-Fi the media access controller (MAC) uses contention access — all subscriber stations that wish to pass data through a wireless access point (AP) are competing for the AP's attention on a random interrupt basis. This can cause subscriber stations distant from the AP to be repeatedly interrupted by closer stations, greatly reducing their throughput. This makes services such as Voice over IP (VoIP) or IPTV, which depend on an essentially constant Quality of Service (QoS) depending on data rate and interruptibility, difficult to maintain for more than a few simultaneous users.
In contrast, the 802.16 MAC uses a scheduling algorithm for which the subscriber station need compete once (for initial entry into the network). After that it is allocated an access slot by the base station. The time slot can enlarge and contract, but remains assigned to the subscriber station which means that other subscribers cannot use it. The 802.16 scheduling algorithm is stable under overload and over-subscription (unlike 802.11). It can also be more bandwidth efficient. The scheduling algorithm also allows the base station to control QoS parameters by balancing the time-slot assignments among the application needs of the subscriber stations.
Physical layer
The original WiMAX standard (IEEE 802.16) specified WiMAX for the 10 to 66 GHz range. 802.16a, updated in 2004 to 802.16-2004 (also known as 802.16d), added specification for the 2 to 11 GHz range. 802.16d (also known as "fixed WiMAX") was updated to 802.16e in 2005 (known as "mobile WiMAX"). and uses scalable orthogonal frequency-division multiplexing (OFDM) as opposed to the OFDM version with 256 sub-carriers used in 802.16d. This brings potential benefits in terms of coverage, self installation, power consumption, frequency re-use and bandwidth efficiency. 802.16e also adds a capability for full mobility support. The WiMAX certification allows vendors with 802.16d products to sell their equipment as WiMAX certified, thus ensuring a level of interoperability with other certified products, as long as they fit the same profile.
Most interest will probably be in the 802.16d and .16e standards, since the lower frequencies suffer less from inherent signal attenuation and therefore give improved range and in-building penetration. Already today, a number of networks throughout the World are in commercial operation using certified WiMAX equipment compliant with the 802.16d standard.
Advantages over Wi-Fi
- The WiMAX specification provides symmetrical bandwidth over many kilometers and range with stronger encryption (TDES or AES) and typically less interference. Wi-Fi is short range (approximately 10's of metres) has WEP or WPP encryption and suffers from interference as in metropolitan areas where there are many users.
- Wi-Fi Hotspots are typically backhauled over ADSL in most coffee shops therefore Wi-Fi access is typically highly contended and has poor upload speeds between the router and the internet.
- It provides connectivity between network endpoints without the need for direct line of sight in favourable circumstances. The non-line-of-sight propagation (NLOS) performance requires the .16d or .16e revisions, since the lower frequencies are needed. It relies upon multi-path signals, somewhat in the manner of 802.11n.

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