The 3G-versus-WiMax debate took a turn recently when the Infocomm Development Authority of Singapore awarded wireless broadband access (WBA) spectrum rights to six companies here.

The successful bidders in the WBA Auction in May were Inter-touch Holdings Pte. Ltd., MobileOne Ltd., Pacific Internet Ltd., Qala Singapore Pte. Ltd., Singapore Telecom Mobile and StarHub Pte. Ltd. They will have to offer WBA services within 18 or 36 months, depending on the spectrum obtained.

WiMax, the leading fixed WBA technology today, is based on the IEEE 802.16-2004 standard. It can technically support speeds of up to 75Mbps in 20MHz channels over a range of less than 6.4km, although the maximum projected range at lower speed is expected to be 50km. Significantly, WiMax does not require line-of-sight to operate.

Chip giant Intel is also putting its considerable weight behind the next WiMax iteration -- 802.16e. This standard will enable a single base station to support both fixed and mobile broadband wireless access. Harmonization between 802.16e and the South Korean WiBro standard is expected to lead to the introduction of a full multimedia experience with voice over IP, video, data and audio, and advanced hand-off capabilities to enable full mobility, according to Patrick Mannion of EE Times. Intel has also unveiled plans to incorporate WiMax -capabilities into chipsets for smart phones by 2007.

Also in the works is another specification, IEEE 802.20 or Mobile Broadband Wireless Access, which is targeted at highly mobile users. It aims to achieve peak rates of over 1Mbps at a mobility speed of up to 250kmh.

These developments point to the fact that while low-hanging fruit for WBA may be the wired broadband replacement market, WBA technologies (there are also proprietary offerings such as Soma) could soon also threaten the data revenue streams of 3G cellular operators. Data is fundamental to new revenues for the carriers, observed Ken Dulaney, vice president for Mobile and Wireless at Gartner Research.

?Telco-independent? Internet service provider Pacific Internet, one of the successful bidders for the WBA spectrum, certainly smells the opportunity. ?From the interest shown by the incumbents and the mobile operators, it is evident that wireless broadband is a threat to existing wired broadband technologies and 3G services,? said Kevin Lim, its senior vice president, General Business.

Research firm TelecomView has also noted that ?the ROI for these new wireless broadband technologies is significantly better than for 3G?.

The math is not difficult. The highest amount paid in the WBA Auction was S$2.27 million (US$1.4 million) -- Pacific Internet?s bid for five lots of spectrum -- compared with the S$100 million that cellular operators forked out for their 3G licences in 2001.

But ?whether and how WBA technologies are positioned vis-a-vis 3G will ultimately be determined by the pace of technology and market developments,? said IDA.

3G will still be important for its mobility, said TelecomView?s principal analyst Ian Cox. StarHub?s head of Mobile Services Chan Kin Hung agreed. ?We see 3G and wireless broadband as very different services with very different target markets,? he said. ?StarHub?s 3G WCDMA service offers maximum mobility within Singapore as well as outside Singapore.?

The maturity of cellular technologies is another factor currently in 3G?s favor. ?Compared to wireless broadband, the standards for 3G WCDMA and GSM are well established and adopted globally,? said Chan. ?On the other hand, we believe it will take some time for wireless broadband to reach a similar level of maturity and prevalence of current GSM/WCDMA in terms of availability and affordability of devices as well as the full mobility of services for both voice and data.?

IDA expects the first wave of wireless broadband equipment to be fixed wireless products intended for providing broadband access to fixed locations. However, it acknowledged that in the mid to long term, wireless broadband may evolve into a mobile broadband technology, based on the IEEE 802.16e standard. ?Wireless broadband technology could then be integrated into portable and mobile devices like laptops and mobile phones,? said IDA.