Wi-MAX Technology Competitive Advantage
China Wi-MAX currently owns fiber rings in Beijing and Hangzhou. These fiber networks run through business districts passing through large numbers of commercial customers per mile. Currently, fiber is out of reach for many businesses just a few blocks or miles away. Utilizing wireless technology for the “last mile” dramatically increases the number of potential customers and leverages the Company’s fiber network at a low cost for a competitive advantage.
The China Wi-MAX Advantage
China Wi-MAX is operating in the Chinese market today by acquiring and deploying optical fiber and wireless assets.
- China Wi-MAX has access to licensed spectrum in Beijing, Shanghai and Hangzhou, and owns optical fiber in Beijing and Hangzhou
- China Wi-MAX plans to obtain additional wireless spectrum access in seven markets and purchase fiber assets in eight additional markets
- The first network in Beijing is deployed and the Company is validating network performance and acquiring customers
Through use of licensed wireless spectrum, the Company can reach customers that are up to ten miles away from its fiber network, providing access to most customers in its large target markets, giving the Company a truly unique opportunity in these cities.
China Wi-MAX’s Advanced Telecom Network
The Company’s network in Beijing consists of a packet-based fiber optic metropolitan network along the Fourth Ring Road in the city.
- This carrier Ethernet network provides 10 Gbps line rate bandwidth and can evolve to 100 Gbps using single wave technology
- A further exponential increase in bandwidth is possible by using Dense Wave Division Multiplexing (DWDM)
- Through its local Chinese partners, the Company also has access to licensed 5.8 GHz wireless spectrum which will be used to provide last mile point to point to multipoint connections between buildings
5.8GHz Wireless Access
This is used when there is no optical fiber to a building to directly connect to the Company’s core fiber network. Both Internet Access and Virtual LAN/VPN services are supported, implemented and maintained in a simple, inexpensive manner.
The following depicts the Companies Beijing Network.
CHWM intends to use 5.8 GHz wireless access to extend the reach of its fiber network (10 miles or more) by connecting buildings beyond the network to those on the fiber ring through roof-top wireless antennae. Using integrated optical fiber and wireless networks greatly increases the potential number of customers the Company can serve.
In China, the 5.8 GHz spectrum is regulated and “Licensed”. Gao Da Yang Guang Communications Technology, China Wi-Max’s partner, at the present time, is the only company in Beijing with more than 20 MHz bandwidth, a significant market advantage for CHWM.
Virtual LAN / VPN Service
The VLAN/VPN customer connection benefits from many of the same mechanisms and technology as the Internet Access service.
The VLAN/VPN service, however, is even more profitable than the Internet access. With Internet Service, CHWM incurs incremental monthly cost based on the buy rate from the PRC authorized Internet transit provider. With the VLAN/VPN service, the monthly network costs are fixed. The Company has 100% control of packet delivery from customer location A to customer location B and that allows CHWM to offer very stringent service delivery guarantees. Customers typically use the VLAN/VPN transport service to interconnect diverse offices and data center facilities.
United States To China Virtual Private LAN Services
The China to U.S. Customer Connection above, benefits from many of the same mechanisms and technology as the VLAN/VPN. The VPLS service, however, is even more profitable than the more local VLAN/VPN service. With the VLAN/VPN service, the monthly network costs are based only on local loop and local network resources. In the case of VPLS, the Company benefits from fees charging for extending from the local fiber network through mainland China transport ingress/egress, to a wide area network (WAN) provisioned to allow the Company to offer the same stringent service level agreement (SLA) guarantees as in VLAN/VPN transport service.
Ethernet services are carried over IP/MPLS networks making use of a wide range of IP-related protocols (see IETF pseudowire standards, e.g. RFC 3985, RFC 4448). Ethernet links are transported as “pseudowires” using MPLS label switched paths (LSPs) inside an outer MPLS “tunnel”. This strategy can support both point-to-point (Virtual Private Wire Service – VPWS) and multipoint (Virtual Private LAN service- VPLS) services, and has recently achieved significant deployment in routed networks. It makes use of a number of basic transport protocols, including SDH and (increasingly) Ethernet.
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