Wi Max Business Plan Sergio Cruzes V4
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This work is based on a translation of my MBA monograph whose certification was issued in April 30th, 2010, by FIPE (Fundação Instituto de Pesquisas Econômicas). Some recent information was added ...
This work is based on a translation of my MBA monograph whose certification was issued in April 30th, 2010, by FIPE (Fundação Instituto de Pesquisas Econômicas). Some recent information was added to this paper while other information was removed from the original MBA monograph.
Brazil launched in 2010, its National Broadband Plan. The aim is to grow broadband at home from 12 million to 40 million by the end of 2014. This means to provide broadband coverage to 72% of total households of the country.
Government’s expectation is to reduce the broadband cost from around 5% average household income to around 0.2% for the most popular plan (speed up to 512 kbps and download limitation) and to around 0.45% for the plan with speed between 512 kbps and 784 kbps.
The different ways to access the internet are changing the people’s behavior. It can be in the business environment , at home or at any other place.
Statistics show that the number of internet users in Brazil increased at a rate greater than 40% a year between 2000 and 2008 (source: Barômetro Cisco 2009).
As per Ibope Nielsen (Source: Meio & Mensagem, 22/June/2009), the number of internet users reached 62.3 million people in Brazil in the first quarter of 2009. However the number of internet accounts is only 15.05 millions (10.4 million for fixed internet and 4.62 million for wireless broadband internet)
At the same time, Telco’s revenue from circuit switching telephone systems are decreasing due to mobile systems user’s growth and the emergence of VoIP systems.
The need to offer broadband services are introducing great access technological innovations such as VDSL, FTTH, 3G HSPA , WiMAX and LTE.
WiMAX is a wireless broadband access technology for the last mile based on 802.16 standard from the Institute of Electrical and Electronic Engineering (IEEE). WiMAX means Worldwide Interoperability for Microwave Access. This name was introduced by the WiMAX Forum which is an organization with a goal to promote, standardize and define the strategy of WiMAX.
The aim of this work is to capture the most important items that influence the WiMAX business case at 2,5 GHz band and provide insights to minimize risks and uncertainties that occur in the deployment of a WiMAX network. It is shown an example of deployment in São Paulo city, Brazil, containing numbers of base stations, subscribers, payback period and internal rate of return.
The study begins with the analysis of the micro-environment providing a summary containing subscribers forecast for the next years.
It is also described the macro-environment analysis. On the technological environment should be noted the delay in the availability of WiMAX-embedded devices while on the 3G side there are more than 800 hundred devices available worldwide. It is also commented about the LTE technology which is being developed by most of the greater telecommunications vendors. On the legal-political environment, it should be noted the delays on the spectrum auctions and the power of cellular operators which influence the rules for WIMAX such as mobility and spectrum usage restriction.
It is also emphasized the importance of the project planning, scope characterization and definition, work breakdown structure definition containing the decomposition of the work to be executed up to the package level, the activities sequencing, costs involved, risks and response plans, schedule and critical path.
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