Despite all the talk about broadband, only about7 percent, or 7.5
million, of U.S. households subscribed to high-speed Internet
access services as of last June, according to a February report
issued by the U.S. Federal Communications Commission (FCC).
And the situation isn't much different elsewhere. Only a few
countries with much smaller populations report somewhat higher
percentages.
Lack of need is, of course, one reason for the unimpressive numbers.
Outside of playing interactive games, which is hardly a universal
activity, no broadband "killer app" has yet emerged. Another
reason is difficulty in getting service. For a variety of
reasons, many would-be subscribers have been unable to get
cable or digital subscriber line (DSL) service. For them,
a fairly new type of technology known as non-line-of-sight
(NLOS) wireless may be just what they need.
At first, NLOS wireless may not sound like a big deal. After all, ordinary
radios and cellphones are non-line-of-sight devices. But they
don't carry broadband data
[see , "What is Broadband?"].
What makes the latest generation of NLOS
wireless technology worth talking about and having is that
it delivers data at high rates over substantial distances.
Moreover, most implementations do so without the need for
a visit from an installation technician.
This last point is crucial. Previous attempts to provide wireless
Internet access to the home failed in large part because their
installation costs were too high. For example, multichannel,
multipoint distribution service (MMDS), which operates at
2.5 GHz, delivers high data rates over tens of kilometers.
But first-generation systems required a directional antenna
to be installed on the subscriber's premises within sight
of a base station antenna.
Since service providers often find out that a potential location
has no unimpeded view of the base station only when they send
an installer to the site, the average successful installation
takes more than one visit. With "truck rolls," as technician
visits are known, costing anywhere from US $300 to $800, it
could take more than a year's worth of subscriber revenue
just to break even on the installation.
Worse, line-of-sight (LOS) systems do not scale well. When a base
station's capacity reaches saturation, the usual procedure
is to divide the coverage area into two pieces, use the existing
antenna to serve half of it, and put up a new antenna to serve
the other half. With directional antennas, that means that
the antennas at roughly half the existing subscriber locations
will have to be re-aimed at the new base station site, necessitating
truck rolls that bring in no new revenue.
That's why communications companies—from household names like AT and T,
Sprint, and WorldCom to newcomers like Winstar and Teligent,
all of which rolled out broadband LOS wireless Internet access
services, principally in the MMDS band—have pretty much given
up on LOS wireless, at least insofar as price-sensitive residential
customers are concerned. Last year, AT and T stopped service
to 47 000 customers, Sprint and WorldCom slowed or halted
their development, and both Teligent and Winstar filed for
bankruptcy protection.