WiMAX Technology

Ahmed Haniah Marketing Management Gary Myers

Contents

Introduction .3 Broadband Wireless 3 Fixed Wireless: Consumer and small-business broadband .3 WiMAX Key Feature . 4 WiMAX vs. 3G 6 Conclusion 7 References 8

Introduction Broadband Wireless Access (BWA) has served enterprises and operators for years. Some companies utilize the benefits of telecommuting or allowing employees in remote location to access their network from other parts of the state or country. In some instances, companies have offices located across the state or some other countries; however, they often retain a central access location where data is stored and can be accessed readily. In such cases, staying connected with the outside world is very vital in doing business. The type of services required to facilitate transmission is provided by communication companies such as Verizon, AT&T, or Sprint just to name a few. However, as the number of broadband users expands across the globe, a competition has also intensified among incumbent carriers to acquire a large number of customers, which also help generate their revenue. In parallel to that growth, wireless mobile services demand has also been increased in the recent years. Having access wirelessly to the internet from every spot at least in the United States and the high speed of the data download is also a dream come through with the emergence of WiMAX (Worldwide interoperability for microware access. Although, its still at the initial stages there is much optimism that WiMAX technology can take over the fixed-line broadband. Wireless Broadband Broadband wireless is about emulating the traditional broadband that we all familiar with such as cable modem and DSL to a wireless context, which offers users certain unique benefits and convenience. Broadband wireless can be categorized into two fundamental types. The first type attempts to provide services similar to that of the traditional fixed-line broadband but using wireless as a mean of transmission medium. This type is thought to be the emerging replacement to cable modem and DSL and its called fixed wireless broadband. The second type of wireless broadband is called mobile broadband, which offers the additional functionality of portability, nomadicity , and mobility. The combination of the above two types can be found in one new technology that is WiMAX (Worldwide interoperability for microwave access) (Andrews, 2007). Fixed Wireless: Consumer and small-business broadband: WiMAX can be seen clearly as the leading broadband access for residential, small office/home office (SOHO), and small- to medium-enterprise (SME) markets in the near future. Like traditional broadband, fixed WiMAX users would benefit from high-speed Internet access, telephony services using voice over IP, and several other internet based applications. The advantages that fixed wireless broadband offer over the traditional one, is lower cost entry and deployment costs; ability to build

out the network needed, lower operational costs for network maintenance, management , and operation; and independence from the incumbent carriers (Andrews, 2007).

Copyright 2005 WiMAX Forum WiMAX Forum is a registered trademark of the WiMAX Forum

WiMAX is designed with great advantages for diverse environments such as Private Networks, Cellular Backhaul, Wireless Service Provider Backhaul, Banking Networks, Education Networks, Public Safety, offshore Communication, Campus Connectivity, Temporary Construction Communication, Theme Parks, Public Networks, wireless Service Provider Access Network, and Rural Connectivity. Its design can be utilized in different geographic and demographic such as urban, suburban or rural areas over short and long term. WiMAX Key Features WiMAX is a wireless broadband solution that offers a rich set of featuring with much flexibility in terms of deployment options and potential service offerings to home users as well as businesses. Some of its highlighted features include: OFDM- based physical layer: The WiMAX physical layer (PHY) is based on orthogonal frequency division multiplexing, a scheme that offers good resistance to multipath, and enable WiMAX to operate in NLOS conditions. OFDM is now widely recognized as the method of choice for mitigating multipath for broadband wireless. Very high peak data rates: WiMAX is capable of supporting very high peak data rate. In fact, the peak PHY data rate can be as high as 74Mbps when operating using a 20MHz wide spectrum. These peak PHY rates are achieved when using 64 QAM modulation with rate 5/6 error-correction coding.

Scalable bandwidth and data rate support: WiMAX has a scalable physical-layer architecture that allows for the data rate to scale easily with available channel bandwidth. This scalability is supported in the OFDMA mode, where the FFT (fast fourier transform) size may be scaled based on the available channel bandwidth. For example, a WiMAX may use 128-, 512-, or 1,048-bit FFTs based on whether the channel bandwidth is 1.25MHZ, 5MHZ, or 10MHZ, respectively. This scaling may be done dynamically to support user roaming across different networks that may have different bandwidth allocations. Adaptive modulation and coding (AMC): WiMAX supports a number of modulations and forward error correction (FEC) coding schemes and allows the scheme to be changed on a per user and per frame basis, based on channel conditions. AMC is an effective mechanism to maximize throughput in a time-varying channel. Link-layer retransmissions: WiMAX supports automatic retransmission request: (ARQ) at the link layer to provide enhanced reliability connection. ARQ-enabled connections require each transmitted packet to be acknowledged by the receiver; unacknowledged packets are assumed to be lost and are retransmitted. Support for TDD and FDD: IEEE 802.16-2004 and IEEE 802.16e-2005 supports both time division duplexing and frequency division duplexing, as well as half duplex duplexing FDD. TDD is also favored by the majority of implementation because of its advantages: 1) flexibility in choosing uplink- to downlink data rate rations, 2) ability to exploit channel reciprocity, 3) ability to implement in nonpaired spectrum, and 4) less complex transceiver design. Orthogonal frequency division multiple-access (OFDMA): Mobile WiMAX uses OFDM as a multiple- access technique, whereby different users can be allocated different subsets of the OFDM tones. Flexible and dynamic per user resource allocation: A scheduler in the base station controlled both uplink and downlink resource allocation. Multiple users share the capacity on a demand basis, using TDM scheme. Quality-of-service support: The WiMAX MAC layer has a connection-oriented that is designed to support a variety of application, including voice and multimedia services. The system offers support for constant bit rate, variable bit rate, real-time, and non-real-time traffic flows. Robust security: WiMAX supports strong encryption, using Advanced Encryption Standard (AES) and has a robust privacy and key-management protocol. Support for mobility: The mobile WiMAX variant of the system has mechanisms to support secure seamless handover for delay-tolerant full-mobility applications, such as VoIP.

IP-based architecture: The WiMAX Forum has defined a reference network architecture that is based on an all-IP platform. All end-to-end services are delivered over an IP architecture relying on IP-based protocols for end-to-end transport, QOS, session management, security, and mobility. WiMAX vs. 3G The significant difference that can be drawn out between the WiMAX and 3G is the channel bandwidth that is configured in each technology and the capacity of each. 3G system is configured with a fixed channel bandwidth whereas WiMAX is configured with a selectable channel bandwidth from 1.25MHz to 20 MHz, which defines its flexible deployment. WiMAX advantage over 3G is also in its ability to support more symmetric links efficiently, which is useful for fixed applications, such as T1 replacement and support for flexible and dynamic adjustment of the downlink-to-uplink date rate ratios. 3G systems on the other hand have a fixed asymmetric date ratio between downlink and uplink. The significant IP architecture of WiMAX adds another big plus over 3G. The WiMAX media access control layer provides the foundation of its support to a variety of traffic mixes, which include real-time and non-real time constant bit rate and variable bit rate traffic, prioritized data, and best effort data. 3G solutions as HSDPA and 1xEV-DO were also designed for a variety of QoS levels (Andrew, 2007). WIMAX NETWORK BUSINESS PLAN

The elaboration of the business plan is the first step in order to build a WiMAX network. It is a critical step whose final results will depend heavily on the assumptions defined on this phase. Bad assumptions will improperly influence the next steps of the project. The business plan is characterized by several analyzes involving the

technical and economic areas that will provide profitability and risks estimations derived from the assumed assumptions. The business plan should consider the competitors that are part of the broadband market and their technologies, initial investment to build the network and the operation costs of this network. The competitors are the 3G networks (1xEVDO and mainly the HSPA networks0, WiFi networks, Cable modem internet service providers, and ADSL internet service providers (Haig Sarkiassian and Randal Schwartz, 2007), and the LTE networks. Some authors

such as Ethevaldo Siqueira (2008), mention that WiMAX will be an advanced alternative for the broadband access, while the 3G and WiMAX would complement themselves. The sensibility analysis will determine what are the factors that strongly affect the return of investiment of the business. Several methodologies and tools may be used to estimate the profitability of the

business. The discounted cash flow (DCF) is one of them. This tool can determine the period of return of the business and also the Net Present Value (NPV) based on an estimation of the discounted future cash flows in order to give their present values. In the analysis of the WiMAX business, it should be necessary to estimate the service penetration and its evolution in the next years, the churn rate and the allowance for doubtful accounts, the revenue evolution and the network operation costs. The terms CAPEX (capitalized expenses which are the network infrastructure costs) and OPEX (expended costs which are the operation and maintenance costs of the network) will used on this analysis. The elaboration of this business plan will be based on the methodology described by Sarkissian and Schwartz (2007).

13.1 Input Parameters The first step for the elaboration of the business plan is to obtain all relevant parameters that concerns to the business.

13.1.1 Morphologic Area It includes the morphologic areas to be attended by the broadband services: high density urban areas, urban areas, suburban and rural areas. It is important to obtain detailed information for each morphologic area about number of inhabitants, houses, companies, terrain profile (flat, mountain, etc) and type of vegetation (grass, trees, etc). For this plan, the intention is to attend the areas described in the table 13.1

Environment Dense urban / urban Urban / Suburban Suburban / Rural Total

Total area (km) 187.06 519.62 504.13 1210.81

Table 13.1 Profile of the areas to be serviced

13.1.2 Spectrum and Bandwidth

For a wireless operator, the spectrum ownership is its more valuable asset. The spectrum cost is one of the more critical items of the business plan. A well elaborated business plan determines how much a future operator can offer by the acquisition of the spectrum in order to provide a reasonable return of investment to its investors. For this plan, it is assumed a bandwidth of 30 MHz (each BTS will have 3 channels of 10 MHz) in the 2.5 GHz spectrum band. 13.1.3 Coverage Area Radio Frequency Engineering To determine the coverage area of each base station in order to dimension the network, it should be necessary to consider the morphologic environment of each base station and the BTS overlapping factor. The tables 13.2 and 13.3 show the generic link budget of a 2.5 GHz WiMAX network for both downlink and uplink. The propagation model used is the SUI (Erceg and others, 1999). Columns A, B and C refer to the morphologic environment that can be referenced to the dense urban/urban, suburban and suburban/rural. The link budget refers to a WiMAX terminal (Smartphone or laptop with embedded modem) in the cell border with rates of 1.5 Mbps and 512 Kbps for the downlink and uplink respectively.

Parameters Operation Frequency (MHz) Frequency reuse Mobility BTS power transmitter (dBm) Gain: MIMO + array (dB) Ganho da antena da ERB (dB) Jumper losses (dB) Terminal receiver antenna gain (dBi) Terminal receiver sensitivity (BPSK 1/2) (dBm) Fading margin (90% area reliability) (dB) Interference margin (dB) Building penetration loss (dB) Maximum allowed loss (dB) Coverage radius based on SUI model(km)

Downlink A 2500 N =3 Fixo 36 5 17.5 0.5 0 -96.5 5 3 18 128.5 0.85

B 2500 N =3 Fixo 36 5 17.5 0.5 0 -96.5 5 3 15 131.5 1.25

C 2500 N =3 Fixo 36 5 17.5 0.5 0 -96.5 5 3 8 138.5 2.1

Table 13.1 2.5 GHz WiMAX link budget (downlink) Parameters Terminal transmitter power (dBm) Terminal antenna gain (dBi) Receiver jumper losses of the BTS (dB) Receiver antenna gain of the BTS (dBi) Diversity gain (dB) Array anrenna gain (dB) BTS receiver sensibility (dBm) Fading margin (90% area reliability) (dB) Interference margin (dB) Building penetration loss (dB) Sub-channelization gain (512 kbps na borda) Maximum allowed loss (dB) Coverage radius based on SUI model(km) Uplink A 26 5 0.5 17.5 2 0 -99 5 3 18 3 126 0.75

B 26 5 0.5 17.5 2 0 -99 5 3 15 9 135 1.55

C 26 5 0.5 17.5 2 0 -99 5 3 8 9 142 2.55

Table 13.2 2.5 GHz WiMAX link budget (uplink)

The business plan intends to deploy 300 BTSs in Indianapolis city (and possibly in some areas in the metropolitan area) as: Dense urban / urban environment: 128 stations Urban / Suburban environment: 128 stations

Suburban / Rural environment: 44 stations Considering a consistent level of overlapping among cells, the quantities described above meet the coverage needs described in table 13.1.

13.1.4 CAPEX Assumptions The CAPEX includes the acquisition and construction cost of the stations, the BTSs cost, the BTSs installation cost, power equipments, transmission backhaul and Core network (ASN, routers, DHCP servers, AAA servers, billing servers, NMS and CRM servers). 1. Sites The future WiMAX operator can develop different strategies of site sharing in order to install a WiMAX BTS. It may share the station, the shelter, antennas, transmission backhaul. Dian and Kettani (2004) show several alternatives of resources sharing. For this plan, it will be used the strategy described in the table 13.4.

Sites New sites Existing sites Shared sites

Percentage 30% 30% 40% Table 13.4 Sites deployment strategy The sharing model is the traditional one where it is arranged a place to

install the BTS and the tower is shared to install the antennas.

2. Spectrum

The spectrum may be considered as the main asset of the operator. According to Pyramid Research (2008), the average world price for the

Megahertz per population (PMP) is US$ 0.007. This price tends to be greater in the emergent markets and less on the developed countries. The spectrum price is a very sensitive parameter when determining the payoff period of a business. A very high price will make not viable the business plan. According to the Magazine Exam (August 2009, p. 11), it is described that the purchase of TVA by Telefonica represented to the operator a value between $ 1 billion and $ 1.6 billions. It is estimated that 50% of this value is due to the spectrum cost (190 MHz in the 2.5 GHz band). For this plan, it is assumed a price for the spectrum much greater than the world average price. It is being assumed a price of $ 0,20 per Megahertz per population. Segregating for the city, the spectrum price will be $ 66 millions (30 MHz spectrum band). This price is well in accordance with the price Telephonic paid to acquire 190 MHz of spectrum from TVA for the cities of Indianapolis, Saint Louis and Columbus, OH. These cities represent 21 million inhabitants. However, due to the need of guard band between MMDS and WiMAX systems, it is being assumed a value of $ 90 millions for 30 MHz spectrum in the city of Indianapolis.

3. BTS The base station transceiver (BTS) is the network element responsible by the communication of the WiMAX system with the subscriber devices. The complete system contains BTSs, RF cables, antennas and a transmission backhaul system. The backhaul is responsible of transmitting the aggregate traffic of the subscribers under a BTS towards the network core. It is being assumed that the proposed network will require 210 radio point- to-point links. The remaining backhaul transmission will be provided by fiber optics whose cost will be assumed as network operation. The table 13.5 shows the estimated costs of acquisition of BTSs and accessories, antennas, radio links and installation material.

Item BTS, acessories, installation material Antennas Digital - point-to-point (70% of the sites) including the installation material Total

Unit price ($) Number Total price 95.000 300 28.500.000 600 1800 1.080.000 68.500 210 14.385.000 43.965.000

Table 13.5 Expected costs for BTSs, antennas and radios acquisition

It will be assumed the following values for the installation costs BTS: $ 8.000,00 per unit Radio: $ 5.100,00 per link

4. Civil costs The civil part includes all the necessary elements in order to prepare the site to start the WiMAX BTS installation. It includes site acquisition costs (purchase or rent), civil infra-structure construction costs and powering. The table 13.6 exemplifies the costs where the scenario consists of 30% new sites, 30% existing sites and 40% shared sites.

Item Metalic post (30% of the sites) Metalic post foundation (30% of the sites) Installation material (civil) Civil construction Site acquisition costs Total

Unit price ($) Number Total price 50.000 90 4.500.000 80.000 5.000 15.000 7.500 90 90 300 90 7.200.000 450.000 4.500.000 675.000 17.325.000

Table 13.6 Infrastructure costs for new sites

5. Core Network The WiMAX core basically consists of the ASN (Access Service Network) and CSN (Customer Service Network) entities. The ASN includes the necessary functions to provide radio access to the users terminals. The ASN entity consists of the BTSs and the ASN gateway. The CSN consists of the AAA (entity responsible for authentication, authorization and accounting of users traffic), DNS/DHCP (domain name service and dynamic host configuration protocol. It is an entity for internet access), HA (Home agent. It provides the PDSN (packet data service node) function and provides IP connectivity to the users terminals), NMS (Network Management System. It provides the function of operation administration and maintenance of the network).

The WiMAX core network usually also includes a CRM (Customer relationship management) platform and an IP network in order to interconnect all platforms of the core network. The table 13.7 shows the assumed values used for the Core network.

Item 20 SUN V440 platforms (main and backup: AAA, Billing, DNS, CRM, CRM NMS)Platform (software) AAA Platform (Bridgewater or Metasolv) NMS Platform (software) Switch router Firewall Installation material for the interconnection of platforms and equipments Total Table 13.7 Core network costs

Unit price ($) 80.000 1.000.000 150.000 500.000 103.700 25.000

Number 20 2 2 4 4 2

Total price 1.600.000 2.000.000 300.000 2.000.000 414.800 50.000

25.000

25.000 6.389.800

6. Deployment costs The deployment costs refer to the Project management, engineering and installation costs. It is assumed a total cost of $ 16 million reals for a 18-month deployment.

13.1.5 Subscribers Growing Rate Assumptions

In the beginning of this work, it was elaborated an analysis to dimension the wireless broadband subscribers base for the next years based on projections from research institutions, education level of the American population, wireless internet users profile and also projections based on the income rate of the American population. The more pessimistic result provides a number of 4 million wireless broadband users in the state of Indiana. The forecast of several research institutes is that the number of WiMAX subscribers in the world will vary between 2% and 10% of the total 3G broadband users. This forecast limits the number of WiMAX users. So, the strategy of the plan is that a fixed operator, offer an additional wireless broadband service to their subscribers. This plan is limited to the Indianapolis city where there is an estimation of a capacity of up 2 million users of wireless internet in the next years. The goal is to capture 360 thousand subscribers as depicted below:

1. Service plan The WiMAX technology intends to provide a great price decrease of the megabit. In addition, it provides a fast network deployment. Also, the presence in the market of laptops and smartphones with WiMAX embedded modems; all this will provide the operators a great competitive advantage.

The proposed service plan consists in providing for ADSL users the possibility of acquiring a wireless broadband service by a small amount of money. The table 13.8 shows the service plan.

QoS Minimum Business Maximum Minimum Platinum Maximum Minimum Gold Maximum Silver Best Effort

Class

DL 1500 5000 512 1500 256 1000 512

kbps kbps kbps kbps kbps kbps kbps

OSR 25 50 25 50 25 50 50

Users distributio n 5,0% 10,0% 35.0% 50,0%

Price ($) 129 44.9 34.9 24.9

Table 13.8 Service Plan (QoS: Quality of service, DL: downlink, OSR: oversubscription rate)

The OSR parameter informs the amount of the designed overload for the network, i. e. , how much capacity is exceeded if all users access the network at same under their designed nominal rate. Typical overload values are between 25 and 40. The business plan does not consider additional value services that the operator may offer to their subscribers such as video and music download, content distribution such as online news and specific on demand entertainment. According to ANDR RIEDEL and others, different ways of incentives may reduce periods and allow to increase the overbook value of the project subscribers. the traffic demand at congestion

2. Subscribers evolution growth The subscribers growth plan forecasts: 54 thousand subscribers in average in the first year

 144 thousand subscribers in average in the second year 230 thousand subscribers in average in the third year 300 thousand subscribers in average in the fourth year 360 thousand subscribers in average in the fifth year

13.1.5 OPEX Assumptions

OPEX represents the costs incurred to keep the firm in an operational state. It includes the network operational costs and planning, transmission backhaul maintenance, power, site rents, sales, marketing, promotion and customer support. According to some technical papers from WiMAX Forum, Business Case Models for Fixed Broadband Wireless Access based on WiMAX Technology and the 802.16 Standard (2004) and WiMAX: The Business Case for Fixed Wireless Access in Emerging Markets (2005), it was developed the assumptions for the network operation costs. These publications also contain the estimation of the costs for internet connectivity. It is estimated the internet connectivity costs will vary between R$ 5 million reals and R$ 17 million reals per year. The table 13.9 shows the cost assumptions for the network operation.

Item

Assumptions 20% of the revenue in the first year, decreasing

Marketing and Sales expenses

Network Operation

to 11% of the revenue in the fifth year and 10% of the revenue in the first year, decreasing beyond to 7% of the revenue in the fifth year and beyond revenue in the first year, decreasing to 6% of the

G&A 3% of the revenue in the fifth year and beyond BTS Maintenance 5% of the BTS CAPEX NMS Maintenance 5% of the NMS CAPEX Radio Maintenance 5% of the Radio CAPEX Site rent R$ 1800,00 a month in average per site Provision for bad debts 1% of the revenue CRM Maintenance 5% of CRM CAPEX

Table Maintenance assumptions AAA 13.9 OPEX

5% of AAA CAPEX Sun platforms maintenance 5% of Sun CAPEX Internet connectivity access

13.2 Output Parameters

Between 5 million and 17 million reals per year

The main Project output parameters are the period of return of the investment, the Internal Rate of Return (IRR) and also the Net Present Value (NPV). The network deployment will cost R$ 94 million of reals in equipments, sites and project team. In the year zero, it will be necessary R$ 65.7 million of reals and R$ 28.3 million of reals in the first year of network operation. Additional R$ 18 million reals are necessary in the first year to operate the network in its first year. Based on the above assumptions, it is estimated that the period of return of the investment will be six years. It is estimated an IRR of 11.56% on the end of the seventh year of network operation.

The Business plan development of a WiMAX network is a very complex process that takes so much time. As there are several involved variables, it is crucial that the project assumptions be consistent and precise. The sensibility analysis shows that the more sensible items are spectrum license price and the internet connectivity price. As already commented, this proposed service is to be offered to the fixed broadband users (e..g. Speedy from Telefonica). So, by a small additional price, these users could purchase wireless broadband internet with mobility. This strategy is aligned with the studies done by LANOO and others.

14.

WiMAX NETWORK DEPLOYMENT

A Project is a temporary effort undertaken to create a unique product, service or result (PMBOK 2004). Temporary means that all projects consist of a very well definite beginning and a definite end. The projects are a way of organizing activities that cannot be approached within the operational limits of an organization. The PMBOK (Project Management Body of Knowledge) has become a very widely used standard by several organizations in the world. Together with the Project Management, the Six Sigma methodology has been deployed by project managers and other professionals in search of greater efficiency and effectiveness in the deployment of projects and business management. ISREFANI C. de PAULA and others (2006) compare the approach of Project Management and Six Sigma methodology, identifying similarities and differences. According to WERKEMA, the Six Sigma methodology is not just another initiative of project management or a program of process improvement that uses old concepts in a modern way. The Six Sigma methodology is a continuous

strategy based on data statistics information collected in projects and organizations. According to ISTEFANI C. de PAULA and others (2006), on the majority of the projects, the Six Sigma methodology is conducted by teams led by Black Belts or Green Belts and it is usually deployed with the process improvement method called DMAIC (Define, Measure, Analyze, Improve, Control). According to to Eckes (2001), each phase means: According to WERKEMA, the Six Sigma methodology is not just another initiative of project management or a program of process improvement that uses old concepts in a modern way. The Six Sigma methodology is a continuous strategy based on data statistics information collected in projects and organizations According to ISTEFANI C. de PAULA and others (2006), on the majority of the projects, the Six Sigma methodology is led by teams leadered by Black Belts or Green Belts and it is usually deployed with the process improvement method called DMAIC (Define, Measure, Analyze, Improve, Control). According to to Eckes (2001), each phase means: 1. Define: definition of improvement goals for the different levels of the organization such as improvement of the profitability numbers of operation and projects, manufacturing level and improvement, and service quality improvement. The problems and the inefficiencies should be considered as opportunities of improvement. In this phase, it is started the stream value mapping. 2. Measure: measure the efficiency and effectiveness of the current system using reliable metrics that will allow to monitor the progress of the system through these metrics. In this phase, it is the stream value mapping is finished. 3. Analyze: use of techniques and statistics tools in order to eliminate the gap between current performance and desired performance level. It is determined the root cause of the problems and inefficiencies.

4. Improve: find creative methods based on root of the problems in order to improve process that will result in way to accomplish the activities in a better way providing the desired outcomes. 5. Control: Implement the control in the new system or process and ensure that the improvements will be sustained in the future and that the desired outcomes are achieved. The control should be done both at tactic and strategic level of the organization. ]

According to PETERKA (2005), the search of the root cause of the problems, the magnitude and accuracy of the Six Sigma methodology, all this make the Six Sigma methodology different of the typical project management. The Six Sigma method contains a Project Charter model very well defined that describes the project scope, financial goals, benefits, milestones and others. It is strongly based on data and economies with hard control (DMAIC) that performs specific measurements, identify specific problems and their root causes, and provide specific solutions that can be measured. In project management cases, the organizations usually implement projects without a complete knowledge of what are the financial gains. According to MUNIZ (2008), in the implementation of a project, it should be taken into account that the main goal is to create value to the final consumer providing an enough and competitive profitability margin to the allocated project capital. Therefore, besides of the mastering of the process techniques (initiation, planning, execution, control and administrative closure) and project management tools, it is strictly necessary to consider the concepts and market analysis techniques, risks modeling and evaluation, and the return of the project investment. So, it is important that the project manager consider the investment, financial and operational decisions. The Six Sigma methodology will provide performance metrics in a continuous way to the project manager. So, decisions can be taken in a fast and precise way.

14.1 Diamond Model

One of the more common myths in the world of project management is that all projects are similar and that tools and similar methods can be used for all project activities. This erroneous concept took several projects to succumb to the failure and created great disappointments to the project managers, stakeholders and project sponsors. The reality is that projects differentiate by themselves in several aspects and few organizations acknowledge this formally. According to SHENHAR (2005), the diamond model consists in four dimensions which are novelty, complexity, technology and pace. He shows how to classify the projects and how to adapt the management style for the correct project. The four dimensions for distinction among project types are Novelty: how new is the product to customers and users o Derivative, Platform, Breakthrough Technology: how much new technology is used o Low-tech, Medium-tech, High-tech, Super-tech Complexity: how complex is the system and its subsystems o Assembly, System, Array Pace: How critical is the time frame o Regular, Fast/Competitive, Time-critical, Blitz

An example of incorrect use of this model was the project of the construction underestimated). The exhibit 14.1 shows the Diamond Model that was defined for the project described on this work. In terms of novelty, it is a platform, i. e., the final user will have a product (internet access) which is not a disruptive technology, i. e., the embedded technology of this product is transparent for the user (user wants to access the internet with mobility). In terms of complexity, this project fits as a system, i. e., the deployment will request a reasonable number of interactions in the organization. In terms of technology, this project fits as high-tech because it has never been deployed by the organization. Also, WiMAX is a relatively new technology and considered as disruptive by many authors such as ORTHMAN (2005). The deployment pace is fast / competitive (most of cellular network deployments fits on this pace). Therefore, based on above, it can be defined the management style required for the Project as well identify the benefits and risks of the Project. The dimension technology is identified as high-tech. This requires an engineering team very well trained and experienced and a project management team very conscious of this aspect of the project where it will be necessary an amount of tests above the average of the other projects. This requires a conscious dimensioning of the budget for this activities as well as a realistic estimation of the deadline of the acceptance of the project. of the Denver Airport. (technological dimension was

Technology

Super HIgh Tech High Tech

Medium Tech

Novelty
Breakthroug h Platform Derivativ e Regular Fast / Competitive TimeCritical Blitz

Low Tech

Complexity

Assembly

System

Array

Pace
Exhibit 14.1 Diamond model of the WiMAX network

Will Continue.

Conclusion: WiMAX technology would represent a major shift on how home and business users communicate wirelessly. Most importantly the speed of data downloads whether via laptop or Smart phones. Many applications, notably VOIP, would also benefit from WiMAX technology as its based on IP service. The implementation of WiMAX network will give the owners and operators the ease of use and expandability, because the trenching of cables and ripping off of wall is not required reducing the cost of the deployment of the new network. Once the antenna and equipment are installed and powered, WiMAX is ready for service. In most cases, deployment of WiMAX can be completed in a matter of hours, compared with months for other network solutions. This paper coversthe material and has some marketing in it, however, next one will be mainly toward marketing.

References: Andrews, G. (2007). Fundamentals of WiMAX : understanding broadband wireless networking. Prentice Hall. Retrieved April 4, 2011 from http://proquest.safaribooksonline.com.mutex.gmu.edu/book/electricalengineering/communications-engineering/0132225522

Westech Communication Inc. (2005). Can WiMAX address your application? Retrieved May 1, 2011 from http://www.wimaxforum.org/technology/downloads/Can_WiMAX_Address_Your_Applications_final.pd f