I was in Boston earlier this week, attending Ericsson’s annual analyst forum. Over the coming days, I’ll provide some thoughts arising from those sessions.
One of the more interesting discussions I had was looking at the use of HSPA to deliver residential broadband. Mobile broadband technology being used for fixed applications and not just for under developed economies.
For example, among countries with existing advanced telecom infrastructure, Ericsson is citing experience with incumbent telco KPN in the Netherlands and Hutchison’s 3 in Sweden, that have enjoyed substantial levels of market success with their mobile broadband technology used for fixed applications.
Both countries have witnessed strong consumer demand for broadband extending beyond the reach of traditional fixed-line DSL. For the non-ILEC, wireless allows the service provider to avoid out-payments for ILEC unbundled network elements, delivering residential voice and high-speed internet to complement the mobile service revenues.
Further, Ericsson claims that provisioning HSPA is simpler, resulting in lower capital expenditures and ongoing operating expense than the network operations traditional fixed line broadband solutions.
Will Canada’s new entrant carriers go after a fixed broadband market? Such service bundles, competing with incumbent DSL and cable modem service, may significantly enhance their business plans and help accelerate network build-outs.