A Comparative Overview between Wireless Broadband and Regular Broadband

In the 21st century, the communications revolution has emerged as a well documented phenomenon spanning nearly every thriving industry. The developments in technology and emergence of various economies have created a new space for top quality broadband services.  Broadband services have reduced the digital divide in the society and have promoted a more equitable sharing of various connectivity platforms, Web 2.0 and social media.

The most common solution for broadband services is Digital Subscriber Line (DSL). DSL is a wired service which comes with a full scale equipment and copper wiring. In addition, it needs a fixed line phone to run. The overheads of maintaining a DSL infrastructure are immense and not viable in the long run. That is why wireless technologies fulfilled global industry requirements, making it possible for everyone to subscribe to low cost services without any infrastructure constraint.

Wireless v/s Wired: A Cost Comparison
Both wired and wireless broadband services have their own economic and operational considerations.

For a wired service, the economics revolve around:
  • Revenue: This is generated from monthly subscriptions, connections, equipment rental and other usage based fees.
  • Operational costs: They comprise costs of transmission, utilities, support and maintenance. In addition, service provisioning and customer acquisition are also included in the operational expenses bracket.
  • Capital costs: They include the costs of the DSL access multiplexer (DSLAM), broadband remote access server (BRAS) and customer premises equipment (CPE). In addition, other capital expenses like copper wiring reflect the decline in DSL pricing these days.

Wireless broadband revolves around these economic factors:
  • Revenue: Like its wired counterpart, wireless broadband too generates its revenue from subscription and usage based fees. In addition, revenues are also generated from voice over IP and internet telephony services.
  • Operational costs: It comprises costs incurred in support, utilities, and maintenance of the wireless infrastructure.
  • Capital costs: These include the base station costs and the core infrastructure costs as well as the wireless towers and shelters. The capital expenses have come down drastically due to a shift to open and standardized systems like WiMAX and WiFi.

Wireless v/s Wired: Challenges

The business case of wireless technologies has enabled emerging economies to embrace the technology wholeheartedly. The case is also reinforced by some pitfalls that a wired broadband service imposes. Some of them are:
  • Prone to theft and physical sabotage
  • Unpredictable costs
  • Business risk is immense
  • Time to market is long

Although wireless broadband has become a standard connectivity platform world wide, the following challenges prevent the technology from encompassing the markets:
They are:
  • Spectrum allocation like 3G
  • Low Average Revenue per User (ARPU)
  • Lack of proper technical support and maintenance
  • Costly infrastructure

The battle between wired technologies and wireless technologies has resulted in quality product innovation and better customer satisfaction. Each technology has its own pros and cons. So, depending on their usability, security and convenience, you need to select the one that fits your requirements perfectly. A little research and visits to different stores will enable you to gain proper knowledge about making the right choice, and guide you to use your broadband services judiciously.