WiMax.research.paper(3)(2)

8/2/2019 WiMax.research.paper(3)(2)

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WiMAX Technology

Ahmed Haniah

Marketing Management

Gary Myers

Contents
http://online.vitalsource.com/books/9781256083979http://online.vitalsource.com/books/9781256083979http://online.vitalsource.com/books/9781256083979


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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


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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 alsointensified 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 , andmobility. 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/homeoffice (SOHO), and small- to medium-enterprise (SME) markets in the near future. Like traditionalbroadband, fixed WiMAX users would benefit from high-speed Internet access, telephony servicesusing 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


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

Copyright 2005 WiMAX ForumWiMAX 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.


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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 scalingmay 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 linklayer 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.


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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. TheWiMAX 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


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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 infra-

structure 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).

13.1For this plan, the intention is to attend the areas described in the table

EnvironmentTotal area(km)

Dense urban / urban 187.06Urban / Suburban 519.62Suburban / Rural 504.13Total 1210.81

Table 13.1Profile of the areas to be serviced


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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 AreaRadio 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 basestation 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.


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Parameters DownlinkA B C

Operation Frequency (MHz) 2500 2500 2500Fre uency reuse N =3 N =3 N =3

MobilityFixo

Fixo

Fixo

BTS ower transmitter (dBm 36 36 36Gain: MIMO + array (dB) 5 5 5Ganho da antena da ERB (dB 17.5 17.5 17.5Jumper losses (dB) 0.5 0.5 0.5Terminal receiver antenna gain (dBi 0 0 0Terminal receiver sensitivity (BPSK 1/2)(dBm) -96.5 -96.5 -96.5Fading margin (90% area reliability) (dB) 5 5 5Interference margin (dB 3 3 3Building penetration loss (dB) 18 15 8Maximum allowed loss (dB 128.5 131.5 138.5

Coverage radius based on SUI model(km) 0.85 1.25 2.1

Table 13.12.5 GHz WiMAX link budget (downlink)

Parameters UplinkA B C

Terminal transmitter power (dBm) 26 26 26Terminal antenna gain (dBi 5 5 5Receiver jumper losses of the BTS (dB) 0.5 0.5 0.5Receiver antenna gain of the BTS (dBi 17.5 17.5 17.5Diversity gain (dB) 2 2 2

Array anrenna gain (dB)0

0

0

BTS receiver sensibility (dBm) -99 -99 -99Fading margin (90% area reliability) (dB) 5 5 5Interference margin (dB 3 3 3Building penetration loss (dB) 18 15 8Sub-channelization gain (512 kbps naborda 3 9 9Maximum allowed loss (dB) 126 135 142Coverage radius based on SUI model(km 0.75 1.55 2.55

Table 13.22.5 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


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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 inorder 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 Percentage

New sites 30%

Existing sites 30%Shared sites 40%

Table 13.4Sites 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


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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.


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Item

Unitprice($) Number Total price

BTS, acessories, installation material 95.000 300 28.500.000

Antennas 600 1800 1.080.000Digital - point-to-point (70% of the sites)includin the installation material 68.500 210 14.385.000Total 43.965.000

Table 13.5Expected 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 Unit rice ($ Number Total riceMetalic post (30% of the sites) 50.000 90 4.500.000Metalic post foundation (30% ofthe sites) 80.000 90 7.200.000Installation material (civil) 5.000 90 450.000

Civil construction 15.000 300 4.500.000Site ac uisition costs 7.500 90 675.000Total 17.325.000

Table 13.6Infrastructure costs for new sites


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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 Unit rice ($ Number Total rice20 SUN V440 platforms (main andbacku : AAA, Billin , DNS, CRM, 80.000 20 1.600.000CRM Platform (software) 1.000.000 2 2.000.000AAA Platform (Bridgewater or 150.000 2 300.000NMS Platform (software 500.000 4 2.000.000Switch router 103.700 4 414.800Firewall 25.000 2 50.000

Installation material for theinterconnection of platforms ande ui ments 25.000 1 25.000Total 6.389.800

Table 13.7Core network costs


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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.


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

The table 13.8 shows the service plan.

ass oS DL OSRUsersdistributio

Price$

inessMinimum 1500 kbps 25

5,0% 129Maximum 5000 kbps 50

inum Minimum 512 kbps25

10,0% 44.9Maximum 1500 kbps 50

oldMinimum 256 kbps 25

35.0% 34.9Maximum 1000 kbps 50

lver Best Effort 512 kbps 50 50,0% 24.9

ble 13.8 Service Plan (QoS: Quality of service, DL: downlink, OSR:

rsubscription rate)

The OSR parameter informs the amount of the designed overload for the network, i. e. , how much capacity is exceusers 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 amusic download, content distribution such as online news and specific on demand entertainment.

According to ANDR RIEDEL and others, different ways of incentives may reduce the traffic demand at coniods and allow to increase the overbook value of the project subscribers.

2. Subscribers evolution growth

The subscribers growth plan forecasts:

54 thousand subscribers in average in the first year


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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.


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Item

Marketing and Sales expenses

Assumptions

20% of the revenue in the first year, decreasing

to 11% of the revenue in the fifth year and

beyond10% of the revenue in the first year, decreasing

to 7% of the revenue in the fifth year and

beyond6% of the revenue in the first year, decreasing to

3% of the revenue in the fifth year and beyond

5% of the BTS CAPEX

5% of the NMS CAPEX

5% of the Radio CAPEX

R$ 1800,00 a month in average per site

1% of the revenue

5% of CRM CAPEX

5% of AAA CAPEX

5% of Sun CAPEX

Between 5 million and 17 million reals per year

Network Operation

G&A

BTS Maintenance

NMS Maintenance

Radio Maintenance

Site rent

Provision for bad debts

CRM Maintenance

AAA Maintenance

Sun platforms maintenance

Internet connectivity access

Table 13.9 OPEX assumptions

13.2 Output Parameters

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.


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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 spectrumlicense 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


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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.


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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 andensure 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 analysistechniques, 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.


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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


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An example of incorrect use of this model was the project of the

construction of the Denver Airport. (technological dimension was

underestimated).

The exhibit 14.1 shows the Diamond Model that was defined for theproject 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 hasnever 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.


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Technology Super HIgh

TechHigh Tech

Medium Tech

Novelty

Breakthroug

h

Platform Derivativ

e

Regular

Low Tech Complexity

Assembly System Array

Fast /

CompetitiveTime-

CriticalBlitz

Pace

Exhibit 14.1 Diamond model of the WiMAX network


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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.


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References:

Andrews, G. (2007). Fundamentals of WiMAX : understanding broadband wireless networking. PrenticeHall. Retrieved April 4, 2011 fromhttp://proquest.safaribooksonline.com.mutex.gmu.edu/book/electrical-engineering/communications-engineering/0132225522

Westech Communication Inc. (2005). Can WiMAX address your application? Retrieved May 1, 2011fromhttp://www.wimaxforum.org/technology/downloads/Can_WiMAX_Address_Your_Applications_final.pdf
http://proquest.safaribooksonline.com.mutex.gmu.edu/book/electrical-engineering/communications-engineering/0132225522http://proquest.safaribooksonline.com.mutex.gmu.edu/book/electrical-engineering/communications-engineering/0132225522http://proquest.safaribooksonline.com.mutex.gmu.edu/book/electrical-engineering/communications-engineering/0132225522http://proquest.safaribooksonline.com.mutex.gmu.edu/book/electrical-engineering/communications-engineering/0132225522http://proquest.safaribooksonline.com.mutex.gmu.edu/book/electrical-engineering/communications-engineering/0132225522http://proquest.safaribooksonline.com.mutex.gmu.edu/book/electrical-engineering/communications-engineering/0132225522

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