COPENHAGEN (WiMAX DAY) by Joachim Bamrud. As WiMAX services begin to roll-out across Scandinavia, Denmark has already cemented its position as one of the top WiMAX markets in Europe. That comes on top of it boasting the world’s highest broadband penetration, according to new figures from the OECD.
“It has surpassed all our expectations,” says Peter Jerry Sørensen, managing director of Clearwire subsidiary Danske Telecom. The operator now has approximately 10,000 WiMAX subscribers. That is more than twice the number of the two top Finnish WiMAX operators and significantly higher than subscriber numbers in Norway and Sweden.
The latest subscriber figure, three times higher than at the start of the year, is also ahead of schedule. Danske Telecom had expected to reach the 10,000 mark by the end of 2006.
Clearwire has been offering their proprietary “plug-and-play” WiMAX service since October 2005. The service began in the largest Danish cities: Copenhagen, Århus and Odense, and last month it expanded to an additional three cities: Roskilde, Aalborg and Esbjerg.
True Nomadic WiMAX
Sørensen attributes their successful growth to the plug-and-play technology, which is less expensive than most fixed WiMAX solutions, and traditional broadband. “In fixed WiMAX, you have to install CPE or antenna on a rooftop,” he says. “That is a costly exercise…that hampers the development. Our concept is different. It’s closer to the mobile WiMAX standard versus the old fixed WiMAX.”
The plug-and-play equipment enables consumers to install the solution themselves after receiving a small modem. “You have instant delivery the same day, which is a huge advantage,” Sørensen says. “And it’s simple, no CD, no configuration.” Importantly, Clearwire customers also can take the modem with them from location to location, for example in their cars or outdoors or another city, he points out.
The Clearwire success comes as the other broadband providers are also seeing strong growth. Denmark is now the top broadband market in the world, measured by penetration, according to the latest six month data from the OECD. The data covers 30 developed countries, including the United States, Korea, Japan and the leading European economies.
With a penetration rate of 29.3 percent, Denmark is ahead of the Netherlands (28.8 percent), Iceland (27.3 percent) and Korea (26.4 percent).
New Spectrum Licenses
Licenses for 3.5 GHz spectrum in Denmark were sold at an auction in 2004. The Danish National IT and Telecom Agency (ITST) is now preparing to grant licenses for the 3410-4200 MHz frequencies. So far, no decision has been made on whether they will be granted through an auction or beauty contest, says Kristian Borten, deputy head of division at the ITST. The goal is to have the licenses ready for 2007, he adds.
Despite the challenge of competing against successful broadband incumbents, and the possibility of increased competition from more licensed spectrum owners, Sørensen expects to keep growing, due to the unique combination of quick access, low prices and mobility.
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