WiMAX Handbook: Building 802.16 Wireless Networks

Chapter 10: Regulatory Aspects of WiMAX

For many service providers, the gating factor in making the decision to deploy a WiMAX network may revolve around actions of regulatory agencies. The first concern is projected cost structures in using licensed vs. unlicensed spectrum. In an ideal environment, spectrum is free, and there is no interference from other broadcasters. Even when this is the case, it may not always be so. This chapter will first outline what the operator needs to know regarding unlicensed frequencies and then will cover the FCC's move to liberalize spectrum policy (that is, make more of it available to operators, especially in light of the FCC's initiative to boost access to broadband to Americans by whatever means).

Operate Licensed or Unlicensed?

An objection often raised about WiMAX applications is that because some spectrum potentially used by WiMAX is unlicensed, it will inevitably become overused (like common land in the "tragedy of the commons") so that it becomes unusable. At this time, the government (United States or other) will step in to control the spectrum, making it "not free" and thus costing the service provider his or her profit margin and relegating the market to deep-pocketed monopolists.

In this scenario, the service provider can buy rights to a licensed frequency either directly from the FCC, from another operator, or through a frequency broker. How much does this cost? That depends on the location (urban, suburban, or rural) and the frequency. (Other operators may highly desire this frequency, or it may appear to have no...

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