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Wireless broadband is one of the hottest topics in telecommunications right now as consumers demand faster internet speeds and accessibility whenever and wherever they want it. For the last few years there has been much debate over which wireless broadband technology (Wimax or 3G) would win through. As it currently stands 3G wireless broadband services definitely have the upper hand. All 4 of the major mobile carriers now have a compelling wireless broadband offer and are seeing great take up rates across the board.

Furthermore 3G services are leaving behind providers of proprietary wireless networks like iBurst and Unwired in terms of coverage (fast becoming ubiquitous), download speeds (currently at least equivalent and only getting faster with new High Speed Packet Access (HSPA) technology), flexibility (a choice of hardware such as USB “dongles” or ethernet “bridges”) and price (dropping so fast that it’s now almost at the levels of traditional fixed broadband services). With all this in mind and the upcoming launch of Telcoinabox’s wireless broadband product (via Optus 3G) let’s take a look at what the major players have to say and what they’re doing in the market.

Wireless Devices
While some carriers offer the option of using your mobile handset as a modem (connected via USB to a laptop) all providers are also offering specialized modems for use specifically with laptops or, in some cases desktop PCs. In the case of 3G wireless broadband services all of these modems contain a SIM card. The price of the devices varies according to the carrier, device and plan but beware the promise of “free” devices when a sneaky extra monthly charge is actually added to the bill. Here’s a quick explanation of some of the devices you’ll come across.

PCMCIA cards (also known as PC cards)
Slightly larger than credit card size and slots into the “card slot” in the side of your laptop. Now quite a dated technology no longer supported by many new laptops and easily confused with the slightly smaller PC Express cards (see below) by which it has been replaced. May or may not need separate driver software to operate (provided by the supplier on a disk).

PC Express cards (also known as PC cards)
Similar to the PCMCIA card outlined above but slightly smaller. Beware confusion as a PC Express card slot will not accommodate a PCMCIA card. May or may not need separate driver software to operate (provided by the supplier on a disk).

USB “Dongles”
Now the preferred method of access for many users. Small and compact with a short cable connecting to the USB port on your laptop / PC. Drivers usually built into the hardware and “auto-install”.

Internet “keys”
The newest hardware option which looks very much like a USB hard drive (thumb drive). Smaller and more compact than a “dongle”. Drivers usually built into the hardware and “auto-install”. Currently offered by Telstra and 3.

Ethernet / wireless modem
While most other devices are firmly targeted at the more mobile user this option is great for users looking for a home or office solution. Ethernet ports and Wifi allow direct connection of multiple PCs / laptops. Can be powered via USB and is “plug and play” with drivers built into the hardware and “auto-install”.

3G capable lap-tops
Increasingly manufacturers such as Lenovo, Acer, HP and Dell are building the capability to slot a 3G SIM card directly into their lap-tops. No separate hardware is required leading to cost savings for the end customer.

Telstra Next G
Telstra stole a march on its major competitors when it unveiled its national Next G network in 2007. By taking the decision to use the 850MHz spectrum Telstra has been able to replicate the coverage of its old CDMA network which it has subsequently turned off (to much disdain in the rural community) and has been able to back this up with some major advertising spend.

While Optus and Vodafone scramble hard to catch up in coverage terms Telstra is enjoying a monopoly status as a wireless broadband provider in large swathes of the country and is set to enjoy this for the rest of the year. Telstra’s first-half results for 2008 indicate that this monopoly position has paid dividends with Telstra adding 136,000 new wireless broadband customers to take its total wireless broadband base to 464,000, generating revenue of $230 million

All this coverage comes at a price and the problem with monopolies is that they tend to be expensive - this is no different. Telstra’s wireless broadband service (in the guise of Bigpond wireless broadband) is the most expensive of the big 4. Pricing / Offer

Good Points

• Amazing coverage
• Network being upgraded rapidly
• Did I mention coverage?

Bad Points

• Very expensive – even more so if using a mobile handset or laptop with built-in 3G
• No free modem – upfront cost of $249 that is not made clear on the website
• Speed throttled to 256kbps on some plans
• Promotional prices on latest offer only for 1st 6 months of a 36 month contract – still expensive over the life of the contract

Hutchison (3)
3 has long been a pioneer in the provision of data services over its 3G mobile network and has had great success through its affiliations with “cultural phenomenon” Big Brother and major sporting events such as international test cricket. Nigel Dews, the CEO of Hutchison Australia has recently gone on the record announcing that 3 grew its mobile broadband customer base by 288,000 in the first 4 months of this year – that’s more than one new subscriber every single minute of every single day! Hutchison is increasing network speeds to enable speeds of 7.2Mbps and is focused on generating more non-voice revenue.

While 3 is a market leader in 3G wireless services its offer is somewhat diluted by its lack of coverage and the incredibly high cost of roaming data. It's all too easy for users to rack up a huge bill and suffer from “bill-shock”

Pricing / Offer

Good Points

• Cheap monthly price points
• Range of devices available
• Reasonable excess usage charge in 3G zone

Bad Points

• Coverage limited to metro areas
• Roaming charges extremely expensive

Vodafone
To some extent Vodafone has been playing catch-up in the wireless broadband market and is a little behind both Optus and Telstra in expanding its HSPA network. To try and catch up lost ground Vodafone are running a hot $39.95 offer for 5GB of included download with a free USB modem until 30th June. Aside from this offer its standard pricing is relatively high compared to both Optus and Telstra.

As a mobile only carrier Vodafone is at a disadvantage versus competitors like Telstra and Optus as it does not have a fixed network to enable backhaul of large amounts of bandwidth at reasonable prices, this could hamper Vodafone’s wireless data growth in the future unless it makes a strategic move to combine with a major fixed network provider.

Pricing / Offer

Good Points

• The limited-time 5GB deal is great value
• Reasonable excess usage charges
• Lower data bundles available for very low users (100MB and 300MB) but more expensive than 1GB packages from other providers

Bad Points

• Roll-out of network is slightly behind other carriers
• Limited hardware options
• Standard pricing 3 to 4 times more expensive than some of the competition
• Month to month charges (non-contract) are astronomical

Optus

Optus has recently made big announcements about its aspirations to become the number one mobile provider in Australia and it is certainly backing up these claims with investment in its network. Current projections mean that 3G coverage will be at 96% by December 2008, basically the equivalent of Optus’s current 2G mobile coverage.

Optus is the only serious player in the wholesale 3G wireless broadband market and is, of course, the partner that Telcoinabox is launching with.

Pricing / Offer

Good Points

• Rapidly growing network and coverage
• Very attractive incentives to bundle including 4 months free and $10 discount
• Good value 5GB plan (only available for a limited time)
• Dongles, PC express and “In Zone” Ethernet / wifi modems available, USB “stick” modems coming soon

Bad Points

• $199 upfront cost for “dongle” modem with no monthly repayment options
• $9.95 delivery fee for all modems

Summary
The 3G wireless broadband market is growing at a phenomenal rate and Telcoinabox will soon be in a position where our service providers can offer a competitive wireless broadband product that enables us to benefit from this. With increasing demand for mobility it certainly looks like this market is here to stay and there are clear parallels with telephony services where fixed-line services have been declining as mobile services are on the increase.

While fixed broadband solutions like ADSL and cable still have a place in the market the increasingly attractive price, performance and flexibility of 3G wireless broadband is sure to encourage its take-up as a secondary internet connection or even as a replacement for many fixed broadband services. Besides, a product that has brought the word “dongle” into everyday use can’t be all bad can it?

Author: Paul Line
Email: paul@telcoinabox.com